The act of an
employer not permitting its
employees to work. That is, an employer may close down its place of business (such as a factory) so that employees cannot work and thereby
earn a living. Lock-outs are useful in situations such as when a
union only represents a portion of a company's
workforce. If the employer believes the union is making unreasonable demands, it can declare a lock-out to encourage non-union workers to put pressure on the union workers to give up on those demands. Because this has the effect of punishing all workers, lock-outs are usually illegal.