Working Life > Enterprise > Lock-Out

Lock-Out

Definition, Explanation

A labour dispute arises when either an employer or employeesStrikes and lockouts are used as instruments for collective bargaining autonomy during labour disputes. When a strike is declared by the employees, to be precise - by unionised employees, the lockout is used by employers as a defensive action against labour disputes. During a lockout, the employer refuses to allow some employees to work. Just like strikes, lockouts are used to put pressure on a negotiating partner, so with a lockout an employer puts pressure on trade unions in order to conclude a collective agreement. The labour unions pay strike benefits during the time of a lockout. try to enforce their demands.

Requirements for a lockout to be legal:

• The lockout is used as an action in the context of a labour dispute
• Employees and labour union have been informed
• The lockout is executed by the responsible employer’s association
• There are no penal laws violated
• Citizens’ supply of gas, water, electricity and maintenance and emergency services must remain unaffected
• Employees who are not striking may be affected by the lockout, whereas the principle of proportionality has to be respected and the number of employees locked out must not exceed certain limits
  • the lockout is restricted to the bargaining subjects
  • the number of employees locked out should be the same as the number of employers on strike, but employees locked-out need not be on strike
  • the employment relationship persists during the lockout

Forms of lockout:

• Defensive lockout – in reaction to a strike
• Offensive lockout – is usually not practised
• Hot lockout
  Exclusion of employees from their workplace and remuneration in reaction to a strike
• Cold lockout
  A company cannot produce any longer, because it is dependent on another company for some reason, but that company is not working due to a lockout. In such cases, the locked-out are not entitled to short-time working benefits or to strike benefits from the labour unions. In severe cases, employees may receive unemployment benefit I

Consequences of a lockout:

• Stoppage of work
• Exclusion of employees from their workplace
• Employees are generally not entitled to be paid
• Employment contracts cannot be cancelled, instead employment relationships rest during the time of strike and lockout
• After both the lockout and the strike have come to an end, all employees are entitled to continued employment

During a mediation process, there are no labour disputes, that is, no strikes allowed.

Social insurance and lockout:

• Statutory health insurance:
  Employees remain insured
• Statutory nursing-care insurance:
  Employees remain insured
• Statutory pension insurance:
  During the time of lockout and strike, no insurance contributions are paid. Accordingly, that time is not regarded as a contribution period
• Statutory accident insurance:
  During a lockout, there is no insurance protection
• Unemployment insurance:
  Entitlement to unemployment benefit I is suspended during a lockout

Using lockouts in labour disputes is a controversial topic, especially in the case of cold lockouts. A hot lockout in the company of a supplier can cause cold lockouts in dependent firms. Thereby, the number of employees locked-out can increase quickly. And after all, only the employees that are in the hot lockout will receive strike benefits.

Tips, Checklist

• If you are an employee and a member of a labour union, turn to your labour union in case you are locked-out. They may pay benefits during lockouts
• Possibly get legal support from a solicitor specialised in labour and collective bargaining law

Last update: 01/12/2012