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Section 63: Illegal strikes and lock-outs

The Industrial Relations Code, 2020 (Act No. 35 of 2020) • Official Statutory Text & Plain English Practice Guide

Statutory Mandate
Chapter VIII: Strikes and Lock-Outs
Competent Labour Forum
Act No. 35 of 2020
Section 62 All 104 Sections of Industrial Relations Code, 2020 Section 64

Legal Commentary & Landmark Judgments: Section 63

Section 63 of the Industrial Relations Code, 2020 defines illegal strikes and lock-outs commenced in violation of Section 62 or continued contrary to Government prohibitory orders, while providing a statutory safe-harbor exception for strikes or lock-outs declared in consequence of illegal counterparty action.

  • Statutory Definition of Illegality: A strike or lock-out is illegal if commenced or declared in contravention of Section 62, or if continued in violation of an order prohibiting strike/lock-out issued under Section 42(7) or Section 46(3).
  • Safe-Harbor Retaliatory Exception: Explicitly provides that a lock-out declared in consequence of an illegal strike, or a strike declared in consequence of an illegal lock-out, shall not be deemed to be illegal.
  • Severe Legal & Disciplinary Consequences: Participation in an illegal strike disentitles workers to wages, invites disciplinary dismissal for misconduct under standing orders, and exposes participants to criminal penalties under Section 86.
Key Landmark Precedents:
  • Syndicate Bank v. K. Umesh Nayak (1994) 5 SCC 572: Constitution Bench ruled that strike legality is tested solely against statutory mandates; an illegal strike cannot be justified under any moral or socio-economic rationale.
  • India General Navigation and Railway Co. Ltd. v. Their Workmen AIR 1960 SC 219: Supreme Court laid down the doctrine of proportionate punishment during illegal strikes: peaceful strikers face wage loss, while violent instigators and active picketers are liable to dismissal.
  • Workmen of Motor Industries Co. Ltd. v. Management (1969) 2 SCC 13: Held that a strike commenced during the pendency of conciliation is illegal ab initio, and disciplinary dismissal of active ringleaders does not violate industrial law.
Courtroom Practice & Strategic Litigation Guidance:

When workers stage an unnotified walkout, management should immediately post a notice on the gate declaring the strike illegal under Section 63, warning of eight-day wage deductions under wage laws and disciplinary action. If management must shut factory gates to protect machinery, expressly declare the lock-out as a consequence of the illegal strike under Section 63(2) to preserve legal immunity.

Section 62 All 104 Sections of Industrial Relations Code, 2020 Section 64