Employee Welfare

• Employee welfare means “the efforts to make lifeworth living for workmen.” According to Todd“employee welfare means anything done for thecomfort and improvement, intellectual or social, of the employees over and above the wages paidwhich is not a necessity of the industry

Features of Employee Welfare

•  Employee welfare is a comprehensive term• including various services, facilities and

amenities• provided to employees for their betterment.• * The basic purpose in to improve the lot of the• working class.• * Employee welfare is a dynamic concept.• * Employee welfare measures are also known

as• fringe benefits and services.• * Welfare measures may be both voluntary and• statutory

Objectives of Employee Welfare• Employee welfare is in the interest of the employee, the• employer and the society as a whole. The objectives of• employee welfare are: -• * It helps to improve.

* It improves the loyalty and morale of the employees.* It reduces labor turnover and absenteeism.* Welfare measures help to improve the goodwill and

• public image of the enterprise.• * It helps to improve industrial relations and industrial• peace.• * It helps to improve employee productivity

Agencies of Employee Welfare• 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 forcanteens, crèches, rest rooms, shelters etc.

• 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 ensurescompliance with the provisions under various labor laws.

• 3. Employers: - Employers in India in general looked upon welfare• work as fruitless and barren though some of them indeed had done• pioneering work.• 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 laborassociation and the Mazdoor sabha, Kanpur.

• 5. Other agencies: - Some philanthropic, charitable d social service

• organizations like: - Seva Sadan society, Y.M.C.A., etc

Types of Employee Welfare• * Intramural: - These are provided within the

organization like: -• 1. Canteen,• 2. Rest rooms,

3. Crèches,4. Uniform etc.

• * Extramural: - These are provided outside the• organization, like: -• 1. Housing,• 2. Education,

3. Child welfare,4. Leave travel facilities,5. Interest free loans,6. Workers cooperative stores,7. Vocational guidance etc.

Types of Employee Welfare• Statutory welfare work - comprising the legal provisions in• various pieces of labor legislation.

•  Voluntary welfare work - includes those activities which are• undertaken by employers for their voluntary work.• Different ways of Social Security Provision in India

• 1. Social Insurance- common fund is established with periodical

• contribution from workers out of which all benefits in terms ofcash or kind are paid.The employers & state prove major portion offinances.Benifits shuch as PF, Group Insurance etc are offered.

• 2. Social Assistance- Benefits are offered to persons of small• means by govt out of its general revenues. Eg- Old age pension

Social Security Employee Welfare•  Medical care

- Sickness benefit in cash- Old age pension or retirement benefit- Invalidity pension- Maternity benefit- Accident benefit- Survivor’s benefit

• Art 41 0f Indian constitution says that “ the state shall within the

• limits of its economic capacity & develeopment, make effectiveprovision for security , the right to work, to education & to publicassistance in cases of unemployment, oldage, sickness &disablement & in other cases of undeserved want”

Philosophy of Employee Welfare• The philosophy of labour welfare activities is

based on the theory that success of industrialdevelopment depends upon harmoniousrelations and co-operation between labour andmanagement (employer ). The labour has afund of knowledge and experience at his jobs. Ifrightly directed and fully used, it would make agood contribution to the prosperity of theorganization this can be achieved only throughthe satisfaction of the labour.

Theories of Employee Welfare• The Police Theory: This is based on the contention• that a minimum standard of welfare is necessary for

labourers. Here the assumption is that withoutpolicing, that is, without compulsion, employers donot provide even the minimum facilities for workers

• The Religious Theory: This is based on the concept• that man is essentially "a religious animal."• The Philanthropic Theory: This theory is based on• man's love for mankind. Philanthropy means "Loving• mankind.• Trusteeship Theory - This is also called the

Paternalistic Theory ofLabour Welfare. According to this the industrialistor employer holds the total industrial estate,properties, and profits accruing from them in atrust.

Theories of Employee Welfare• Placating Theory - According to this theory, timely and

periodicalacts of labour welfare can appease the workers.They are some kind of pacifiers which come with afriendly gesture

• The Public Relation Theory: This theory provides the basis for an atmosphere of goodwill between labour and management, and also between management and the public, labour welfare programmes under this theory, work as a sort of an advertisement and help an organization to project its good image and build up and promote good and healthy public relations.

• The Functional Theory - This is also called the Efficiency Theory. Here, welfare work is used as a means to secure,preserve and develop the efficiency and productivity oflabour, It is obvious that if an employer takes good care ofhis workers, they will tend to become more efficient andwill thereby step up production.

Role of Management in Employee Welfare• Organizations provide welfare facilities to their employees to

keep• their motivation levels high. The employee welfare schemes

can be• classified into two categories viz. statutory and non-statutory• welfare schemes.• The statutory schemes are those schemes that are

compulsory to• provide by an organization as compliance to the laws

governingemployee health and safety. These include provisions provided inindustrial acts like Factories Act 1948, Dock Workers Act (safety,health and welfare) 1986, Mines Act 1962.

• The non statutory schemes differ from organization to organization

• and from industry to industry

Employee Welfare• STATUTORY WELFARE SCHEMES• The statutory welfare schemes include the following provisions:• Drinking Water• Facilities for sitting• First aid appliances• Latrines and Urinals• Canteen facilities• Spittoons• Lighting

• NON STATUTORY SCHEMES

• Personal Health Care (Regular medical check-ups): Some of the• companies provide the facility for extensive health check-up• Flexi-time: The main objective of the flextime policy is to provide• opportunity to employees to work with flexible working schedules• Employee Assistance Programs: Various assistant programs are• arranged like external counseling service so that employees or

members• of their immediate family can get counseling on various matters.

Impact of Welfare on Productivity• The welfare measures aim at integrating the socio-psychological• needs of employees, the unique requirements of a particular

technology, the structure and processes of the organization and theexisting socio-cultural environment.

• It creates a culture of work commitment in organizations and• society which ensure higher productivity and greater job• satisfaction to the employees.• Due to the welfare measures, the employees feel that the• management is interested in taking care of the employees that

result in the sincerity, commitment and loyalty of the employeestowards the organization.

• The employees work with full enthusiasm and energetic behavior• which results in the increase in production and ultimately the• increased profit

I L O & Employee Welfare

• ILO was setup in 1919 as a part of League of Nations for the

• promotion of universal peace through social justice.• Important areas of ILO activities & field operations

- Manpower orgn & vocational training- Migrant workers- need to promote equality of migrant workers in

• all social &labour matters.• -Women workers- protection• - Child workers- against exploitation• - Social Security

-Conditions of work-Health , safety & welfar

I L O’s Employee Welfare

• ILO has suggested welfare funds on a collective basis to finance

• activities in small undertakings.• It has adopted a number of convections & recommendations• regarding industrial accidents & occupational health.• New dimension to welfare activities has been provided by

ILO’s• contribution to family welfare & population education prog

among• industrial workers in organised sector in India• It has rendered exemplary service to all 3 elements

composing it –• govt, employees & workers.• It has greatly influenced labour legislation, labour welfare ,

trade• unionism & Industrial Relations in India