33 Employee Welfare
Rajeev Jain
1. Learning Outcome
After completing this module the students will be able to:
- Understand the meaning and definition of employee welfare.
- Have a knowledge of the welfare agencies and welfare schemes.
- Have a knowledge of the provisions of employee welfare as given under factories act 1948.
2. Introduction
Industrial progress of a country depends on its committed labour force. In this regard the importance of labour welfare was recognized as early as 1931 when the Royal commission on Labour stated that the benefits which undergo this nomenclature are of great importance to the worker who is unable to secure by themselves. The schemes of labour welfare may be regarded as a wise investment which usually brings a profitable return in the form of greater efficiency.
Employee welfare means “the efforts to make life worth living for workmen.” According to Todd “employee welfare means anything done for the comfort and improvement, intellectual or social, of the employees over and above the wages paid which is not a necessity of the industry.”
Employee Welfare
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3. Features of employee welfare
Employee welfare is a comprehensive term including various services, facilities and amenities provided to employees for their betterment. It generally includes those items of welfare that is provided by statutory provisions or required by the customs of the industry or the expectations of employees from the contract of service from the employers.
The basic purpose is to improve the life of the working class. The purpose of providing welfare amenities is to bring about the development of the whole personality of the worker-his social, psychological, economic, moral, cultural and intellectual development to make him a good worker, a good citizen and a good member of the family.
Employee welfare is a dynamic concept. These facilities may be provided voluntarily by progressive and enlightened entrepreneurs from their own side out of their realization of social responsibility towards labour, or statutory provisions may compel them to make these facilities available; or these may be undertaken by the government or trade unions, if they have the necessary funds for the purpose.
Employee welfare measures are also known as fringe benefits and services. ‘Labour Welfare’ is a very broad term, covering social security and such other activities as medical aid, crèches, canteens, recreation, housing, adult education, arrangements for the transport of labour to and from the workplace.
4. Objectives of employee welfare
Employee welfare is in the interest of the employee, the employer and the society as a whole. The labour/employee welfare work aims at providing such service facilities and amenities as would enable the workers employed in the industries/factories to perform their work in healthy and favourable surroundings conducive to good health and high morale.
It is partly humanistic, for it enables the workers to enjoy a fuller and richer life.
It is partly economic as it improves the efficiency of the worker and keeps him contended and satisfied. It therefore minimizes the desire of the workers to form unions and to resort to strikes.
The aim is partly civic because it develops a sense of responsibility and dignity amongst the workers and thus makes them good citizens of the nation.
5. Employee welfare agencies
5.1. Central government
The central government has made elaborate provisions for the health, safety and welfare under Factories Act 1948, and Mines Act 1952. These acts provide for canteens, crèches, rest rooms, shelters etc.
5.2. State government
Government in different states and Union Territories provide welfare facilities to workers. State government prescribes rules for the welfare of the workers and ensures compliance with the provisions under various labor laws.
5.3. Employers
Employers in India in general looked upon welfare work as fruitless and barren though some of them indeed had done pioneering work.
5.4. Trade unions
In India, trade unions have done little for the welfare of workers. But few sound and strong unions have been the pioneering in this respect. E.g. The Ahmedabad textiles labor association and the Mazdoor Sabha, Kanpur.
5.5. Other agencies
Some philanthropic, charitable social service organizations like: – Seva Sadan society, Y.M.C.A. etc. are contributing towards employee welfare.
6. Labour welfare schemes
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Labour welfare schemes may be statutory, voluntary or mutual
It is statutory when such activities have to be undertaken in lieu of the legislation given by the government like drinking water facility, giving first aid, electricity etc.
It is voluntary when the activities are undertaken from their own side by the employers, for example providing flexible timing to the employees, providing them with regular health checkup camp etc. It is mutual when all parties join hands to bring about the social and economic upliftment of the workers. On the basis of location of welfare activities .The types of welfare services are as follows:
6.1. Intramural
These are provided within the organization like:
- Canteen
- Rest rooms Crèches
- Uniform
- Drinking water
- Washing and bathing facilities
- Provision of safety measures like fencing and covering of machines
- Good layout of machinery and plant
- Fire extinguishers
- Provision of pension, provident fund, fringe benefits etc.
6.2. Extramural
These are provided outside the organization such as:
- Housing
- Education
- Child welfare
- Leave travel facilities
- Interest free loans
- Workers cooperative stores
- Vocational guidance etc.
7. Labour welfare in India
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In recent years Indian organizations have started giving attention to the welfare. The following facilities are provided in most organizations.
- Educational facilities for the workers and their children in the form of provision of schools, reading room, libraries, financial assistance etc.
- Medical facilities for workers and their families in the form of well equipped first aid centres, ambulance rooms, dispensaries for the treatment of diseases like TB, cancer, leprosy, mental disease etc.
- Transport facilities for workers residing at a long distance and the grant of conveyance allowance.
- Recreational facilities to provide the worker an opportunity to develop a sense of physical and mental discipline in the form of music, dance, drama, games and sports, paintings , hobbies and other cultural activities.
- Housing facilities are made available in the form of self contained tents. They contain all facilities like electricity, sanitation, water supply etc.
- Consumer cooperative societies which provide members with good quality food grains and other useful items at reasonable prices.
Accenture in India offers a wide range of employee benefits to suit employee needs, business requirements and local laws, the company focuses on health and the well being of the employees. It has created a gymnasium at the office so that the time of employees is saved of going to some private gym. Various sports facilities are available inside the campus. The company is among the growing number of organizations that encourages flexi-timing and work from home facility. Employees and their families are invited for celebrations and the company also has days for bringing family members to the office.
Similarly NIIT led the practice of providing the creative benefits to employees that were designed around the life stage. The objective was to make the company attractive to work for and also to retain employees. The list of benefits include: wedding allowances, Little NIITians care aimed at children of employees, birthday gifts and celebrations and family days.
8. The Factories Act, 1948
It contains the following provisions relating to Labour Welfare:
8.1. Facilities:Washing
In every factory (a) adequate and suitable facilities shall be provided and maintained for the use of workers; (b) separate and adequately screened facilities shall be provided for the use of male and female workers; (c) such facilities shall be easily accessible and shall be kept clean.
8.2. Facilities for storing and drying clothing:
In every factory provision for suitable place should exist for keeping clothing not worn during working hours and for the drying of wet clothing.
8.3. Facilities for sitting:
In every factory, suitable arrangements for sitting shall be provided and maintained for all workers who are obliged to work in a standing position so that the workers may take advantage of any opportunity for rest which may occur in the course of work. If in any factory workers can efficiently do their work in a sitting position, the Chief inspector may ask the employer of the factory to provide such seating arrangements as may be practicable.
8.4. First aid appliances:
Under the Act, the provisions for first-aid appliances are necessary. At least one first-aid box or cupboard with the prescribed contents should be maintained for every 150 workers. It should be readily available during all working hours.
Each first-aid box or cupboard shall be kept in the charge of a separate responsible person who holds a certificate in the first-aid treatment recognised by the State Government and who shall always be readily available during the working hours of the factory.
In every factory wherein more than 500 workers are ordinarily employed there shall be provided and maintained an ambulance room of the prescribed size containing the prescribed equipment. The ambulance room shall be in the charge of properly qualified medical and nursing staff. These facilities shall always be made readily available during the working hours of the factory.
8.5. Canteens:
In every factory employing more than 250 workers, the State government may make rules requiring that a canteen or canteens shall be provided for the use of workers. Such rules may provide for (a) the date by which the canteen shall be provided, (b) the standards in respect of constitution, accommodation, furniture and other equipment of the canteen; (c) the foodstuffs to be served therein and charges which may be paid thereof; (d) the constitution of a managing committee for the canteens and representation of the workers in the management of the canteen;
(e) the items of expenditure in the running of the canteen which are not to be taken into account in fixing the cost of foodstuffs and which shall be borne by the employer; (f) the delegation to the Chief inspector, of the power to make rules under clause (c).
8.6. Shelters, rest rooms and lunch rooms:
In every factory wherein more than 150 workers are ordinarily employed, there shall be a provision for shelters, rest room and a suitable lunch room where workers can eat meals brought by them with provision for drinking water.
Where a lunch room exists, no worker shall eat any food in the work room. Such shelters or rest rooms or lunch rooms shall be sufficiently lighted and ventilated and shall be maintained in a cool and clean condition.
8.7. Crèches:
In every factory where more than 30 women workers are ordinarily employed, a room or rooms shall be provided and maintained which can be used by their children who are below the age of 6.
Such rooms shall provide adequate accommodation, proper lightning and ventilation, maintained in clean and proper sanitary conditions and children will be cared by women who are given adequate training.
The State government may make rules for the provision of additional facilities for the care of children belonging to women workers:
- For washing and changing their clothing
- For free milk or refreshment or both for the children, and
- For the mothers of children to feed them at the necessary intervals.
8.8. Welfare officers:
In every factory wherein 500 or more workers are ordinarily employed, the employer shall employ in the factory such number of welfare officers as may be prescribed under Sec. 49(1). The State government may prescribe the duties, qualifications and conditions of service of such officers.
Source:
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9. Principles of Employee Welfare Service
Following are generally given as the principles to be followed in setting up a employee welfare service:
- The service should satisfy real and individual needs of the workers and this can be done by the active participation of workers.
- The service should be such as can be handled by cafeteria approach. An employee benefit plan that allows staff to choose from a variety of benefits to formulate a plan that best suits their needs. Cafeteria plan options may include health and accident insurance, cash benefits, tax advantages and/or retirement plan contributions. Due to the difference in Sex, age, marital status, number of children, type of job and the income level of employees there are large differences in their choice of a particular benefit. This is known as the cafeteria approach. Such an approach individualises the benefit system though it may be difficult to operate and administer.
- The employer should not assume a benevolent posture.
- The cost of the service should be calculated and its financing established on a sound basis.
- There should be periodical assessment or evaluation of the service and necessary corrective action must be taken on the basis of feedback.
10. Benefits of Welfare Scheme
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The important benefits of welfare measures can be summarized as follows:
- They provide better physical and mental health to workers and thus promote a healthy work environment.
- Facilities like housing schemes, medical benefits, and education and recreation facilities for workers’ families help in raising their standards of living. This makes workers to pay more attention towards work and thus increases their productivity.
- Employers get stable labor force by providing welfare facilities. Workers take active interest in their jobs and work with a feeling of involvement and participation.
- Employee welfare measures increase the productivity of organization and promote healthy industrial relations thereby maintaining industrial peace.
- The social evils common among the labors such as abusing, teasing, etc are reduced to a greater extent by the welfare policies.
11. Summary
Employee welfare means “the efforts to make life worth living for workmen.” .The labour/employee welfare work aims at providing such service facilities and amenities as would enable the workers employed in the industries/factories to perform their work in a healthy and pleasant surroundings favorable to good health and high morale. Employee welfare measures increase the productivity of organization and promote healthy industrial relations thereby maintaining industrial peace.
Labour welfare schemes may be statutory, voluntary or mutual.
It is statutory when such activities have to be undertaken in lieu of the legislation given by the government like drinking water facility, first aid, electricity etc.
It is voluntary when the activities are undertaken from their own side by the employers, for example providing flexible timing to the employees, providing them with regular health checkup camp etc. It is mutual when all parties join hands to bring about the social and economic upliftment of the workers. Welfare services can be intramural or extramural. Intramural when provided inside the organisation like canteens, restrooms, providing uniforms etc. They are extramural when provided outside the organisation like housing, education, loans etc.
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