Each question consists of legal propositions/ principles (hereinafter referred to as 'principle') and facts. These principles have to be applied to the given facts to arrive at the most reasonable conclusion. Such principles may or may not be true in the real sense, yet you have to conclusively assume them to be true for the purposes of this section. In other words, in answering the following questions, you must not rely on any principles except the principles that are given herein below for every question. Further, you must not assume any facts other than those stated in the question. The objective of this section is to test your interest towards study of law, research aptitude and problem solving ability even if the 'most reasonable conclusion' arrived at may be unacceptable for any other reason. It is not the object of this section to test your knowledge of law.
PRINCIPLE: Strike is a collective stoppage of work by workmen undertaken in order to bring pressure upon those who depend on the sale or use of the products of work; whereas, lock-out is a weapon in the hands of the employer, similar to that of strike in the armoury of workmen, used for compelling persons employed by him to accept his terms or conditions of or affecting employment. While in closure there is permanent closing down of a place of employment or part thereof, in lay-off an employer, who is willing to employ, fails or refuses or is noble to provide employment for reasons beyond his control.
FACTS: Workmen of a textile factory went on strike as per law, demanding the payment of bonus. Employer of the factory refused to pay any extra allowances, including bonus, and besides he closed down the factory till the strike was stopped.
Correct Answer :
Act of closing down the factory by the employer amounted to lock-out
Solution :
Correct Answer: Act of closing down the factory by the employer amounted to lock-out
Explanation:
To determine the legal characterization of the employer's action, we must apply the given legal principles to the stated facts:
1. Understanding the Legal Principles:
- Lock-out: Defined as a weapon used by an employer to compel employees to accept terms or conditions of employment (or drop their demands).
- Closure: Refers strictly to the permanent closing down of a place of employment.
- Lay-off: Occurs when an employer, willing to employ, fails or refuses to provide employment due to reasons beyond their control.
- Strike: A collective stoppage of work initiated by the workmen.
2. Applying to the Facts:
- The workmen initiated a lawful strike demanding a bonus.
- The employer refused their demands and closed down the factory temporarily until the workmen ceased the strike.
- The employer's act of temporarily closing the factory was a coercive measure to compel the workmen to accept his terms (refusal of bonus) and return to work.
- It was not a permanent shut down (which would be closure), nor was it caused by reasons beyond the employer's control (which would be lay-off).
Therefore, the act of closing down the factory by the employer constitutes a lock-out.
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