Simple English definitions for legal terms
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A lockout is when an employer stops workers from coming to work and shuts down the business because of a disagreement with the workers. This can happen when the workers are trying to negotiate a new contract with the employer. Sometimes, workers may also refuse to work if the employer is not following the old contract while negotiating a new one. This is called a lockout too.
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:
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.