The lockout is a form of labour action taken by the employers. Lockout means that the employer organisation prohibits work in some of its member companies. In other words, the employers prevent the employees from coming to work and interrupt the payment of their wages during the lockout.
The lockout instituted by the employer is an industrial action just like the employees’ strike. The counterpart and the National Conciliator must be informed of a lockout two weeks before the lockout starts.
Both the lockout and the strike are lawful industrial actions when there is no valid collective agreement in the sector, in other words during the period when no agreement is in force.