Legal Definitions - lockout

Definition: A lockout is when an employer stops work and closes their business because of a disagreement with their employees. This can happen when negotiating a new employment contract or during a labor dispute.

There are two types of lockouts:

• Defensive lockout: This is when an employer closes their business to prevent financial harm or protect a legal right.
• Offensive lockout: This is when an employer closes their business to put pressure on their employees and gain an advantage in negotiations.

Lockouts are similar to strikes, but instead of employees refusing to work, it is the employer who stops work.

Example: A company and its employees are negotiating a new employment contract. The employees want higher wages and better benefits, but the company refuses to agree. As a result, the company decides to close its doors and stop work until an agreement is reached.

This example illustrates a lockout because the employer has stopped work due to a disagreement with their employees during contract negotiations.