Work Stoppage

What is Work Stoppage ?

‘Work Stoppage’ is the term used to denote the stoppage or work either by the employees themselves or by the employer. When it is initiated by the employees, it is called a ‘strike’ and when it is undertaken by the management, it is referred to as a ‘lockout’.

Work stoppage is harmful for the company since it leads to a loss of any kind of output such as the products and services, which leads to financial losses as well as losing customers which might also lead to loss of shareholder confidence in the long term.

As work stoppage might lead to dissolving of the company, they take all kinds of precautions to prevent the same from happening including strike avoidance, labour dispute management, etc.

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