Section 24 of the Industrial Dispute Act, 1947: A Complete Guide to Illegal Strikes & Lock-outs

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Table of Contents

• What is Section 24 of the Industrial Dispute Act, 1947?

• Defining Key Terms: What is a Strike and a Lock-out?

• Section 24 Explained: The Conditions for an Illegal Strike or Lock-out

• The "Why" Behind the Illegality: A Look at Sections 22 & 23

• The Exception: When a Retaliatory Strike or Lock-out is Legal (Section 24(3))

• The Consequences of an Illegal Action: Penalties Under the Act

• Penalty for Illegal Strikes & Lock-outs (Section 26)

• Penalty for Instigation (Section 27)

• Penalty for Giving Financial Aid (Section 28)

• How Courts Interpret Section 24: Key Case Laws

• Conclusion: Navigating Industrial Actions Legally

• FAQs

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What is Section 24 of the Industrial Dispute Act?

The section 24 of industrial dispute act clearly defines what makes a strike or lock-out illegal in India. This law is a critical component of the Industrial Disputes Act, 1947. This article provides a complete guide to Section 24, the related rules in Sections 22 and 23, and the serious penalties for breaking these laws, as detailed in Sections 26, 27, and 28.

Defining Key Terms: What is a Strike and a Lock-out?

Understanding section 24 of the industrial dispute act first requires knowing the basic terms. A strike and a lock-out are the main tools used by employees and employers during a dispute. The law provides specific definitions to ensure clarity.

What is a Strike?

The Industrial Dispute Act defines a strike in Section 2(q). It is more than just stopping work. A strike includes:

• A group of workers refusing to work together.

• A common understanding among workers to stop working.

• Workers refusing to continue their employment.

What is a Lock-out?

A lock-out is an employer's tool, just as a strike is a worker's tool. It is defined in the Act as:

• The temporary closing of a place of employment.

• The suspension of work by an employer.

• An employer's refusal to continue to employ any number of their workers

Action	Who Initiates It?	Primary Purpose
Strike	Employees/Workmen	To pressure the employer to agree to their demands.
Lock-out	Employer	To pressure employees to accept the employer's terms.

Section 24 Explained: The Conditions for an Illegal Strike or Lock-out

An explanation of section 24 of the industrial dispute act shows two main conditions that make a strike or lock-out illegal. These rules ensure that such actions are not used without reason and do not disrupt essential services or ongoing legal proceedings unfairly.

Going Against the Rules of Section 22 or 23

The first condition under Section 24(1) is straightforward. A strike or lock-out is illegal if it goes against the rules laid out in Section 22 or Section 23 of the Act. This means if the proper notices are not given or if an action is started while peace talks (conciliation) are happening, the law considers it illegal. The specific prohibitions found in these preceding sections form the foundation of what is considered an unlawful industrial action.

Continuing an Action Despite a Prohibition Order

The second condition for an illegal strike or lock-out involves ignoring a government order. Under Section 10 or 10A of the Act, the government can refer a dispute to a Board, Labour Court, or Tribunal for a legal decision. If the government also issues an order to prohibit the continuation of a strike or lock-out related to that dispute, and the parties continue it anyway, their action becomes illegal. This rule prevents parties from continuing to fight while a legal resolution process is underway.

The "Why" Behind the Illegality: A Look at Sections 22 & 23

The section 24 of industrial dispute act gets its power from Sections 22 and 23. These sections set the groundwork by establishing clear rules for when strikes and lock-outs are forbidden. Understanding them is key to understanding why an action might be declared illegal.

Section 22: Prohibition of Strikes and Lock-outs in Public Utility Services

The rules in section 22 of industrial dispute act apply to "public utility services," which are essential services like water, electricity, and public transport. The law places stricter rules here to prevent major disruption to the public. Before a strike, employees must provide a notice to the employer.

Key Requirements for Public Utility Services:

Action	Required Notice Period / Condition
Going on Strike	Must give notice at least six weeks before the strike.
	Cannot strike within 14 days of giving the notice.
	Cannot strike before the date specified in the notice.
	Cannot strike while conciliation proceedings are ongoing.
Declaring a Lock-out	Must give notice at least six weeks before the lock-out.
	Cannot lock-out within 14 days of giving the notice.
	Cannot lock-out before the date specified in the notice.
	Cannot lock-out while conciliation proceedings are ongoing.

Section 23: General Prohibition of Strikes and Lock-outs

The regulations in section 23 of industrial dispute act apply to all industrial establishments, not just public utilities. This section prohibits strikes and lock-outs during specific periods to allow legal processes to resolve the dispute peacefully.

General Prohibitions for All Industries:

Situation	Is a Strike/Lock-out Allowed?
During conciliation proceedings before a Board	No, and for seven days after they conclude.
During proceedings before a Labour Court or Tribunal	No, and for two months after they conclude.
During arbitration proceedings	No, and for two months after they conclude.
During a period when a settlement or award is active	No, for any matters covered by that settlement or award.

The Exception: When a Retaliatory Strike or Lock-out is Legal (Section 24(3))

An important exception to section 24 exists within the law itself, creating a unique situation. Section 24(3) states that a strike started in response to an illegal lock-out is not considered illegal. The same principle applies in reverse: a lock-out declared because of an illegal strike is not deemed illegal.

This rule provides a defense for a party that is reacting to an unlawful action by the other side. It recognizes that one side's illegal action can provoke a response.

Simple Scenario:

• IF an employer declares a lock-out that breaks the rules of Section 22 or 23 (making it an "illegal lock-out"),

• THEN the workers can go on strike in response, and their strike will not be considered illegal.

The Consequences of an Illegal Action: Penalties Under the Act

The consequences of an illegal strike or lock-out are clearly defined, with specific punishments outlined in the Industrial Disputes Act. The penalty for illegal strike and other related offenses are covered in Sections 26, 27, and 28, ensuring that workers, employers, and those who support illegal actions are held accountable.

Penalty for Illegal Strikes & Lock-outs (Section 26)

The primary penalty for participating in an illegal industrial action is detailed in section 26 industrial dispute act. The law sets out different punishments for workers and employers. For a worker, initiating or continuing an illegal strike can lead to imprisonment for up to one month and/or a fine of up to ₹50. For an employer, the penalty for an illegal lock-out is more severe: imprisonment for up to one month and/or a fine of up to ₹1,000.

Penalty for Instigation (Section 27)

The Act imposes a harsher penalty on any person who instigates or incites others to join an illegal strike or lock-out. Under Section 27, anyone who encourages or actively supports such an illegal action can face imprisonment for up to six months and/or a fine up to ₹1,000. This provision targets those who play a key role in starting or promoting the unlawful action.

Penalty for Giving Financial Aid (Section 28)

Providing financial support to an illegal strike or lock-out is also a punishable offense under Section 28. Any person who knowingly gives money to support an illegal action can be punished with imprisonment for up to six months and/or a fine up to ₹1,000. This rule aims to cut off the resources that allow illegal actions to continue.

Summary of Penalties:

Offence (and Section)	Liable Party	Penalty
Illegal Strike (Sec 26(1))	Worker	Imprisonment up to 1 month and/or fine up to ₹50.
Illegal Lock-out (Sec 26(2))	Employer	Imprisonment up to 1 month and/or fine up to ₹1,000.
Instigation of Illegal Action (Sec 27)	Any Person	Imprisonment up to 6 months and/or fine up to ₹1,000.
Financial Aid to Illegal Action (Sec 28)	Any Person	Imprisonment up to 6 months and/or fine up to ₹1,000.

How Courts Interpret Section 24: Key Case Laws

The judiciary's interpretation of section 24 case laws has added important layers to its application. Landmark judgments from the Supreme Court of India provide clarity on complex issues like wages during strikes and the limits of industrial action.

India General Navigation and Railway Company Ltd. v. Their Workmen (1959)

In this crucial case, the Supreme Court established a vital principle. The Court ruled that a strike that is illegal cannot be considered "justified." This means that once a strike is found to be in contravention of the Act, workers cannot claim it was for a fair reason to escape the consequences. This judgment affirmed that industrial actions must operate within the boundaries of the law.

Syndicate Bank v. K. Umesh Nayak (1994)

This case dealt directly with the issue of wages during illegal strike periods. The Supreme Court clarified the "no work, no pay" principle. The court held that for workers to be entitled to wages during a strike, the strike must be both legal and justified. If a strike is illegal, workers are not entitled to wages for that period, as they have withheld their labor. This decision settled conflicting views and remains a guiding precedent.

Conclusion: Navigating Industrial Actions Legally

Understanding section 24 of the industrial dispute act is vital for both employers and employees to ensure their actions are within the law. The rules are designed to balance the rights of both parties while promoting peaceful resolutions.

Here are the most important takeaways:

• Section 24 sets the rules. It clearly defines an illegal strike or lock-out as any action that breaks the rules of Section 22 or 23, or defies a government prohibition order.

• Prerequisites are crucial. The legality of an action depends entirely on following the notice periods for public utilities (Section 22) and respecting the prohibitions during legal proceedings (Section 23).

• Consequences are serious. Engaging in an illegal strike or lock-out, or supporting one, leads to specific penalties, including fines and imprisonment for workers, employers, and instigators.

• Legal interpretation matters. Court judgments have established that an illegal strike can never be justified and that workers are not entitled to wages during such a period.

FAQs

Q1. Is going on strike a fundamental right in India?

No, the right to strike is not a fundamental right in India. It is a legal right provided under the Industrial Disputes Act, 1947, which means it is subject to certain restrictions and conditions outlined in the law.

Q2. What is the main difference between Section 22 and Section 23?

Section 22 applies specifically to public utility services and requires a prior notice before a strike or lock-out. Section 23 applies to all industrial establishments and prohibits these actions during the pendency of conciliation or tribunal proceedings.

Q3. What is the penalty for a single worker participating in an illegal strike?

A single worker who participates in an illegal strike can face imprisonment for up to one month, a fine of up to ₹50, or both, as per Section 26(1) of the Act.

Q4. Can a lockout be a response to an illegal strike?

Yes. Section 24(3) of the Act states that a lock-out declared as a consequence of an illegal strike shall not be deemed illegal.

Q5. Does a company need to pay wages for the period of an illegal strike?

No. The Supreme Court has held that workers are not entitled to wages for the period they are on an illegal strike. To claim wages, a strike must be both legal and justified.

Q6. What makes a strike "continued" illegally?

A strike is "continued" illegally if it carries on after the government has referred the dispute to a Board or Tribunal and has issued an order prohibiting its continuance under Section 10 of the Act.

Q7. Who determines if a strike or lock-out is illegal?

The determination of whether a strike or lock-out is illegal is made by a Labour Court or an Industrial Tribunal upon a reference of the dispute.

Q8. Are there different rules for different types of industries?

Yes, the Industrial Disputes Act has stricter rules for "public utility services" under Section 22 due to their essential nature, requiring a mandatory notice period before any strike or lock-out.

Q9. What is the role of a conciliation officer in preventing strikes?

A conciliation officer's role is to mediate between the employer and employees to help them reach a settlement. Strikes are prohibited during the pendency of conciliation proceedings to give this process a chance to succeed.

Q10. Can an employer dismiss workers for participating in an illegal strike?

Participation in an illegal strike is considered misconduct. While the law does not provide for automatic dismissal, an employer can initiate disciplinary action, which may lead to dismissal after a fair inquiry. However, workers are generally protected from dismissal for taking part in a legal strike.