Lockout Advisory

A lockout is an employer's ultimate legal instrument during a collective labor dispute, which involves the temporary suspension of enterprise operations and the denial of access to workplaces for employees. It is a countermeasure to a strike, used by employers to protect their interests. However, declaring a lockout is strictly regulated by law, and an improperly conducted procedure can be deemed illegal, resulting in huge fines, payment of forced idle time, and reputational damage. Lockout advisory services ensure that the employer takes this radical step in full compliance with the law.

What does the Lockout Advisory service cover?

Specialists on Legal.ge offer full legal support in managing crisis situations:

• Assessment of Legal Grounds: Analysis of whether the employer has the right to declare a lockout in the given situation (e.g., whether mediation procedures have been completed).
• Procedural Assurance: Compliance with statutory notice periods and preparation of appropriate notifications for trade unions and employees.
• Documentation: Drafting the lockout order, detailing the conditions and duration of the suspension.
• Risk Management: Calculation of financial and legal risks in case the lockout is declared illegal.
• Negotiation: Continuing negotiations with trade unions parallel to the lockout to resolve the dispute quickly.
• Formalizing Suspension of Labor Relations: Legal regulation of the suspension of employment contracts during the lockout period.

Scenarios when you need this service

Lockout consultation is necessary in the following cases:

• When a trade union declares a strike that threatens enterprise equipment or safety, and the employer wants to take preventive measures.
• If collective bargaining has reached a deadlock and the mediation process has yielded no results.
• When the employer needs leverage to balance unrealistic demands from trade unions.
• If there is a suspicion that a strike might be illegal, and the employer wants a legitimate response.

Georgian Legislation and Regulations

Lockout is regulated by the Labor Code of Georgia (Chapter XIII). According to the law, the right to lockout arises no earlier than 21 days after the start of a collective dispute (completion of conciliation procedures). The employer is obliged to warn employees and the Ministry of Labor about the lockout at least 3 calendar days in advance.

It is important to note that during a lockout, the labor relationship is suspended, and the employer is not obliged to pay wages, although a lockout is not grounds for termination of the employment contract. The law also prohibits replacing employees with other persons (hiring strikebreakers) during a lockout.

Service Delivery Process

1. Situational Analysis: The lawyer assesses the ongoing dispute and the advisability of using a lockout.
2. Preparatory Work: Notifications and warnings are prepared in compliance with legal deadlines.
3. Declaration of Lockout: Legal oversight of the process initiation to ensure enterprise safety.
4. Mediation and Negotiation: Active work on dispute resolution during the lockout.
5. Process Completion: Formalizing the termination of the lockout and restoring normal enterprise operations.

Why choose a specialist on Legal.ge?

A lockout is a "nuclear option" in labor relations — its use requires extreme caution and high professionalism. On Legal.ge, you will find labor law experts with experience in managing complex collective disputes. They will help you use this tool effectively, in full compliance with the law, and with minimal damage to your business.