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Paper has played a vital role in the development of mankind, since times immemorial, as a
means of communication, as the most versatile material for packing of goods, as a medium of
preserving knowledge for progeny.
Paper is defined as A mat of cellulose fibers arranged in crises cross fashion with hydrogen
bond and other forces.

Paper is derived from the word papyrus. Today, paper includes a wide range of products with
very different applications: communication, cultural, educational , artistic, hygienic, sanitary as
well as storage and transport of all kinds of goods. Its almost impossible to imagine a life
without paper.
There is a degree of consensus that the art of making paper was first discovered in China and its
origin in that country is traced back to 2nd Century. In about A.D.105 Ts Lun , an official
attached to imperial court of China , created a sheet of paper using Mulberry and other bast
fibers along with fishnets, old rags and hemp waste. (2nd Century B.C)
Chinese considered paper a key invention and kept this a closely guarded secret for over Five
Centuries until the technology slowly made it way westward. The Arabs captured Chinese city
containing a paper mill in the early 700s and from this started their own paper making
industry.(Early 700s )Invention of printing in 1450s brought a vastly increased demand for

Introduction On Paper Industry

The new millennium is going to be the millennium of the knowledge. So demand for paper
would go on increasing in times to come. In view of paper industry's strategic role for the society
and also for the overall industrial growth it is necessary that the paper industry performs well.
Government has completely delicensed the paper industry with effect from17th July, 1997.

The entrepreneurs are now required to file an Industrial Entrepreneur Memorandum with the
Secretariat for Industrial Assistance for setting up a new paper mill or substantial expansion of
the existing mill in permissible locations.

The Paper industry is a priority sector for foreign collaboration and foreign equity participation
upto 100% receives automatic approval by Reserve Bank of India. Several fiscal incentives have
also been provided to the paper industry, particularly to those mills which are based on non-
conventional raw material.

Capacity, Production, Raw material and Import

There are, at present, about 515 units engaged in the manufacture of paper and paperboards and
newsprint in India. The country is almost self-sufficient in manufacture of most varieties of
paper and paperboards. Import, however, is confined only to certain specialty papers. To meet
part of its raw material needs the industry has to rely on imported wood pulp and waste paper.
Production of paper & paperboard during the year 2002-03(upto December, 2002) is 24.52 lakhs
tonnes. At present about 60.8 per cent of the total production is based on non-wood raw material
and 39.2 per cent based on wood.

Performance of the industry has been constrained due to high cost of production caused by
inadequate availability and high cost of raw materials, power cost and concentration of mills in
one particular area.

Several policy measures have been initiated in recent years to remove the bottlenecks of
availability of raw materials and infrastructure development. To bridge the gap of short supply of
raw materials, duty on pulp and waste paper and wood logs/chips have been reduced. The
capacity utilization of the industry is low at 60%. About 194 paper mills, particularly small mills,
are sick and /or lying closed. Several policy measures have been initiated in recent years.

Imports of paper and paper products was growing over the years. However, it has increased
during 2001-02 after a fall in 2000-01. About 1,40,000 tonnes of paper was exported in 2000-01
mainly to the neighbouring countries.

India's per capita consumption of paper is around 4.00 kg, which is one of the lowest in the
world. With the expected increase in literacy rate and growth of the economy, an increase in the
per capita consumption of paper is expected.


The demand for upstream market of paper products, like, tissue paper, tea bags, filter paper, light
weight online coated paper, medical grade coated paper, etc., is growing up. These developments
are expected to give fillip to the industry.

Indian paper industry needs the following for being globally more competitive.

i.Sustained availability of good quality of raw materials (forest based) and bulk import of waste
paper to supplement the availability of raw materials.
ii.Adequate modernization of the manufacturing assests.
iii.Improvement of the infrastructure.
iv.Quality improvements and reduction in cost of production
v.Import policy conducive for import of material, equipment, instruments, raw materials &
technologies which are bearing of the quality and environment.

Based on the recommendations made in the Report and in consultant with the industry
Associations, action plans are being finalized in consultation with other Ministries/Departments
concerned. The Main Action Points proposed are as under:


Improvements of key ports, roads and railways and communication facilities which will help the
entire industrial sector including pulp & paper.

Raw Material

(i) For Wood Based industry

Revision of forest policy so that plantation can be raised by industry/Cooperatives of

farmers/State Government. Degraded forest land to be made available to the industry for raising

(ii) For Waste Paper based Industry

Import of waste paper at minimum import duty. Introduction of ecolabeling system where in
products made from recycled fibre are rated higher than the products made form virgin fibre.
Introduction of modern and effective collection and grading system.

(iii) For Agro Based Industry

Funds to be made available for technology upgradation for handling & processing of agro
residue fibre, in small & medium scale industries.

Government Policies

Accelerated depreciation to partially mitigate high capital intensity. Allow duty free imports of
new & second hand machinery/equipment for Technology Up gradation.

Energy Policy

Better availability & quality of coal. More uniform Energy Policy by States.

Despite the continued focus on digitisation, Indias demand for paper is expected to rise 53 per
cent in the next six years, primarily due to a sustained increase in the number of school-going
children in rural areas.

Growing consumerism, modern retailing, rising literacy (continued government spending on

education through the Sarva Shiksha Abhiyan) and the increasing use of documentation will
keep demand for writing and printing paper buoyant. Though Indias per capita consumption is
quite low compared to global peers, things are looking up and demand is set to rise from the
current 13 million tonnes (mt) to an estimated 20 mt by 2020, said Harsh Pati Singhania, vice-
chairman and managing director of JK Paper.

An India Ratings report estimates Indias per capita paper consumption at nine kg, against 22 kg
in Indonesia, 25 kg in Malaysia and 42 kg in China. The global average stands at 58 kg.
This indicates there is a lot of headroom for growth in India. From a demand point of view,
every one kg incremental per capita consumption results in additional demand of more than one
mt a year. Besides, policy factors also have a key role to play in the growth of the domestic paper
industry in India. The governments sustained focus on literacy, increased consumerism and
expansion in organised retail are expected to positively affect paper consumption and demand in
India, said Yogesh Agarwal, managing director and chief executive of Ballarpur Industries.
Digital media has a lot of ground to cover, at least as far as penetration is concerned, prmarily in
rural areas. Paper is an established business and its consumption is being encouraged. What was
heartening was though there were challenges, the packaging side of the segment continued to
grow, Agarwal added. In the last five years, the Indian paper sector has invested about Rs 20,000
crore on capacity enhancement, technology upgrade and acquisitions. Now, companies in the
sector are seeking to improve their balance sheets. While the sector is eager to expand capacity
further, decisions in this regard will depend on how soon companies can improve their financials.

The India Ratings report in 2014-15, said paper companies would achieve higher profitability
and free cash flows due to lower capital expenditure, and this would help in deleveraging. This is
because the debt levels of these companies have peaked and cost benefits will accrue from
backward integration (due to capital expenditure) and a larger scale of operations.

The capacity expansion that took place in the industry through the last few years is now being
absorbed due to the rising demand for paper in India. The sector, which faced challenge from
rising input (wood) costs, is now better placed due to a renewed thrust on agro-forestry and
softening of pulp costs, Singhania said.

Commissioning of several state-of-the-art pulp and paper machines such as that seen in the case
of JK Paper last year will result in lower operating costs and improved quality.


The J. K. Organisation is a group of companies with headquarters in Delhi and run by the
Singhania family which rose to prominence in Kanpur, India, under Lala Kamlapatji, a fighter
for Indian independence who burnt up his stock of English cloth on the call of Mahatma Gandhi
during his satyagrah call against British rule. Kamlapatji also set up the Uttar Pradesh Chamber
of Commerce. The name JK is derived from the initials of Kamlapatji (18841937) and his father
Seth Juggilal (18571922). The group was founded in 1918.

The group rose in importance in the 1960s and 1970s when it occupied the third position as an
industrial conglomerate after the Birla and Tata conglomerates. The family is currently divided
into three main groups headed by 3 patriarchs namely Dr Gaur Hari Singhania based out of
Kanpur, Shri Hari Shankar Singhania based out of Delhi and Shri Vijaypat Singhania, based out
of Mumbai. These three patriarchs are first cousins who now run independent businesses. The
Kanpur family runs JK Cements, JK Technosoft, the Delhi family runs, JK Tyre, JK Papers, JK
Lakshmi Cement, Fenner India, JK Risk Managers & Insurance Brokers and the Mumbai family
runs the Raymonds group of companies. To maintain the family history and legacy, the various
family run companies though completely independent and many publicly owned and listed
subscribe to the JK Group Logo and the oldest male member of the generation in power by
tradition becomes the President of the JK Group ( The Association of Trade unions) and allots
the logo to companies run by various family members as and when the apply for membership
and pay an annual fee for the same. It is pertinent to note that these three different units are
technically and legally separate entities and have no cross holdings and have no common
directors and employees except for the shared family history.


During the later half of the 18th Century , Shri Binodia Ram Singhania of village Singhana,
which lies in the Shekavati region of Rajasthan, migrated to Uttar Pradesh. The family settled
down in Kanpur and slowly spread its roots there. JK Organization was born under the
leadership of Lala Kamlapatji and his father Lala Juggilalji. Hence the name J.K.


The foundation of JK Organization was laid when the nation was passing through turbulent
times. It was the time when Indians were discriminated against, in their own home land. Born
on 7th November, 1884, Lala Kamlapatji, the worthy son of Lala Juggilal Singhania, set up the
first Cotton Mill in Northern India in 1921, exclusively using Indian capital, Management and
Labour. One after another, other enterprises were started by him. JK Jute Mills Co. Ltd., JK
Iron & Steel Co. Ltd., JK Oil Mills, JK Cotton Manufacturers, JK Hosiery Factory, JK Hosiery
Factory (Calcutta), Kamlapat Motilal Sugar Mills, Kamla Ice Factory were few of the
initiatives of Lala Kamlapat Singhania.


Keeping alive the spirit of entrepreneurship, the three sons of Shri. Kamlapat Singhania Sir
Padampat Singhania, Lala Kailashpat Singhania and Lala Lakshmipat Singhania started up a
number of industries across India and further consolidated the existing businesses. They were
the pioneers in setting up a mini steel plant in 1924, and first Indian Jute Mill in 1929 in Uttar


The Singhanias of today and their generation next have inherited the spirit of meeting the
entrepreneurial challenges of the times from their forefathers. Under the visionary leadership of
Shri Hari Shankar Singhania, President, JK Organisation, supported by his brothers, the
organization has shown exemplary growth in diversified businesses.

Chart 1:

With a century of multi-business, multi-product and multi-location business operations, the
Group has Companies with a diverse portfolio including Automotive Tyres & Tubes, Paper &
Pulp, Cement, V-Belts, Oil Seals, Power Transmission Systems, Hybrid Seeds, Woollen
Textiles, Readymade Apparels, Sugar, Food & Dairy Products, Cosmetics, etc. All products of
the Group are not only strong brand names but also reputed market leaders in their respective

With its operations spread in almost every state of India, the Group employs over 30,000 people
along with a nationwide sales and service network of over 10,000 distributors and a large number
of retailers and service centers.

Some of the leading Group Companies include:

JK Tyre JK Industries Ltd. Is a leading Tyre manufacturer in India.

JK Paper It is one of the Indias foremost paper manufacturers.
JK Lakshmi Cement It is a renowned and well-established name in the Indian Cement
Fenner India It is the leading manufacturer of V-belts, Oil Seals and Power
Transmission Systems.
JK Seeds JK Agri Genetics Ltd. Is one of the most reliable and well-known names in
Hybrid Seeds.
JK Dairy It is engaged in the production and sale of Milk Powders and Ghee.
JK Sugar It is one of the leading producers of high quality Sugar in India.


JK Paper Mills believe that leadership is not merely a matter of size. With leadership, comes the
responsibility to drive growth in all its possible dimensions. Leadership demands transformation.
And to that extent, leadership shapes the very quality of growth.

At JK Paper Mills, it is this ceaseless quest for holistic growth that has shaped its operations in
the present as well as influenced their investments in the future in world-class technologies for
enhancing customer experience, besides enabling to fulfill social responsibilities.

At JK Paper Mills, technology up-gradation has meant more than just better business sense. JK
Paper Mills have moved beyond enhanced productivity, wider product range and better value, to
investing in and nurturing a future ready organization that is driven by its two core growth
engines Customers and Environment.

J K Paper Mills firmly believe that much more than the technology, its how well equipped we
are to harness it that determines the road to transformation. And therefore, JKPMs investments
are focused on continuous and consistent up-gradation of processes, people and nature. Be it
converting wastelands into productive plantations to produce world-class pulp, or scouting for
and mentoring professionals who can drive the technology movement at JK Paper Mills.


To be a dynamic benchmark and leader in the Indian paper industry


To achieve growth and leadership through the JK brand equity, customer obsession,
technological innovation and cost leadership, with a clear focus on environment, while
continuously enhancing shareholder value.


To provide customer delight both internal and external through our products and
services at lowest cost by continuous improvement in processes, productivity, quality and
management systems.


The secret of success of the J K Paper Mills is attributed to its policy for sustained efforts for
quality, new product development and continuous offering of value added products to customers.

JK Paper Mills has been consistently consolidating its leadership position in the Indian Paper
Industry by continuously focusing on quality upgradation and productivity increase. Beyond
this, JK Paper Mills has been investing continuously in Branding of its products, resulting in
almost half of its revenues coming from branded products. Not only has the Company retained
its dominant leadership in the branded paper market but has been introducing premium new
brands like JK Excel Bond, JK Copier Plus and JK Savanna year after year in
International quality consumer friendly packs. Both JK Copier and JK Easy Copier are the
countrys two largest paper brands.


SURFACE SIZED MAPLITHO AND Super grade of writing & printing paper with
SURFACED SIZED SUPER HIGH high finish and brightness.

JK COPIER A paper most suited in all Xerox Machines.

SURFACE SIZED PULP BOARD & Super grade of Board for printing & paching
SURFACE SIZED SUPER HIGH with high finish and brightness.

CHANCELLOR BOND A superior variety Bond and writing and


JK BOND A normal grade of Bond Paper

WOOD FREE PRINTING A writing and printing paper with good finish
and brightness meant for export market.

ARIMAL A lower grammar writing & printing paper used
for Bills Books as well as Airmail.

JK LASER PRINTING Suitable for Laser Printer

TITANIUM DIOXIDE LOADED A better grade food packaging paper


OPAQUE PRINTING PAPER A common food packaging

WHITE OFFSET BOARD A high bright board supplied to cigarette industries

VARNISHABLE MAPLITHO Catering labels and quality printing jobs with


YELLOW PRINTING Used for yellow pages in Telephone Directory as

well as for other quality printing

WAX MATCH TISSUE Used for match sticks of better quality

OFFSET PRINTING (NATURAL A paper used for coating base


Block centered art board For playing cards

INVORY BOARD A superior coated board used for Visiting cards

and invitation cards.

ENAMEL BOARD A superior coated board used for visiting

CHROMO PAPER A coated Board used for printing magazine covers.


JK Paper has always been a front runner in taking initiatives for improving the quality of life of
the community, especially in the vicinity of its manufacturing plants. Some of the initiatives
taken in the last few years towards Community Development and enhancing Community
Relations include:

2 full fledged schools at Jaykaypur, Rayagada (Orissa). 2800 children is the strength of the
students at present, which include children of Company employees as well as from the
community of nearby villages.
Adult literacy programme for local community.
Night schools for adults, which are being run by unemployed youths from the villages.


School construction & Furnishing
Providing educational aids & school uniform, text books, black boards etc.
Scholarship to students.
Schools for mentally challenged with residential care facilities.

JKPM has its own dispensary, which, in addition to the employees, also attend to
residents of the communities in the vicinity.

Health awareness programme, doctors and renowned experts are invited to organize
camps for awareness and also for cardiology, gynecology, dental, eye and family planning
programmes in collaboration with Government hospitals, local clubs etc.


Games and sports are promoted among the village youth through local tournaments.

Similarly, to promote sports, apart from organizing rural tournaments, sports kits are
distributed free of cost to over 25 villages in Orissa every year.


JK Paper Mills ensures that not only are its effluents well within the notified parameters but
it also takes proactive measures to continuously improve them further.

The Company has signed a voluntary Charter on Corporate Responsibility for Environment
Protection (CREP) with Ministry of Environment & Forests and is investing in the
required facilities for environment protection.

Projects for conservation of energy and water are regularly taken up at both Mills.

Treated effluent water is being used for irrigation purpose.


Infrastructure development projects like building approach roads to nearby villages,

providing pipe water supply, construction of Water storage tank, Town Gate. Police
Chowki, etc. are regularly taken up around J K Paper Mills.


Realising that apart from development programmes, the communities also need source of
livelihood, the Company is promoting various ancillary industries like alum, carton, core
pipe, dry board, fly ash bricks and other industries in the vicinity of the Mills, generating
local employment opportunities.


JK has always been in the forefront of meeting the challenges of natural calamities. Be it
the recent flood in Surat, drought or super-cyclone in Orissa or the Gujarat Earthquake, or
other tragedies like tsunami elsewhere. Apart from cash contributions by the
Organization, employees have also contributed generously from their salaries.
Additionally, immediate relief material in terms of medicines, blankets, tents etc. have
also been sent to the relief camps for distribution.
JKPM opened a special nursery at Bhubaneswar to enable new plants to be planted in
places where super-cyclone had uprooted the existing trees.


Responsible paper making demands a holistic environmental vision and J K Paper Mills
see trees as not just a critical raw material resource but also the means to transform the
lives of the rural community while also promoting a greener India.
Today, J K Paper Mills high tech farm forestry movement is 53,000 hectares vast and has
become a Peoples Movement involving thousands of farmers across Orissa, Andhra
Pradesh, Chhattisgarh, West Bengal, Gujarat and Maharastra. Alongwith environmental
benefits, distribution of high yield Clonal plants developed at JKPMs in-house R & D
Centre has helped farmers to substantially increase the returns from their farms. Teams
from the Company travel across the rural hinterland encouraging, educating and advising
farmers about the merits of farm forestry and the latest farming techniques.

Advanced research in high-yield saplings has resulted in enhancing raw material
availability and quality, greening of surroundings and generating nearly 28 million man-
days of employment among the rural masses. It has put JK Paper ahead, both in terms of
product quality and cost competitiveness.
What sets eco-commitment apart is J K Papers unique corporate vision to protect the
environmental through process innovations rather than end-of-process treatments. Thus,
J K Papers environmental friendly practices are designed to go beyond our operational
requirements and work towards ensuring a better and greener tomorrow for the society as
a whole.

JK Paper Mills today continues to be the Industrys Change Agent and benchmark, thanks to the
indomitable spirit of its people. Leadership, at all levels in the organization has enabled J K
Paper Mills to scale new heights in various facets of the Business. Be it brands, quality of
products and services, technology and innovative strategies, people management practices, J K
Paper Mills stands out as an undisputed leader.

The common perception that with increasing mechanization and automation, the value of the
human touch reduces could not be farther form the truth. In todays world, human decisions have
a far greater impact over a larger interlinked process, making it even more critical to deploy the
right talent at the right place to manage the operations. To address this challenge, J K Paper
Mills have invested substantially in continuous improvement of processes and human skills. This
effort involves identifying the grooming individuals, who can drive the technology movement
at J K Paper, through time-tested practices such as Quality Circles a dynamic shop floor level
participative management system. Jishu Hozen Circles within the TPM (Total Productive
Maintenance) best practices, Suggestion Scheme, Exemplary Work Award and several TPM
related Awards. On the process front, the Company has adopted an ERP (Enterprise Resource
Planning) system to ensure seamless flow of information and enhance managerial efficiency.
This also aids J K Paper Mills personnel in ultimately enhancing Customer Satisfaction.

Clearly, J K Paper has gone well beyond just strategic investments in technology, by
implementing a series of dynamic HR practices so that Team JK is more empowered than its
peers in making the most of technology.





Employee Welfare is an important facet of industrial relations, the extra dimension, giving
satisfaction to the worker in a way which evens a good wage cannot. With the growth of
industrialization and mechanization, it has acquired added importance. The workers in industry
cannot cope with the pace of modern life with minimum sustenance amenities. He needs an
added stimulus to keep body and soul together. Employers have also realized the importance of
their role in providing these extra amenities. And yet, they are not always able to fulfill workers
demands however reasonable they might be. They are primarily concerned with the viability of
the enterprise .Employee welfare, though it has been proved to contribute to efficiency in
production, is expensive. Each employer depending on his priorities gives varying degrees of
importance to labour welfare.

It is because the government is not sure that all employers are progressive minded and will
provide basic welfare measures that it introduces statutory legislation from time to time to bring
about some measures of uniformity in the basic amenities available to industrial workers.

After employees have been hired, trained and remunerated, they need to be retained and
maintained to serve the organization better. Welfare facilities are designed to take care of the
wellbeing of the employees, they do not generally result in any monetary benefit to the
employees. Nor are these facilities provided by employers alone. Governmental and non-
governmental agencies and trade unions too, contribute towards employee welfare.

Employee welfare is a comprehensive term including various services, benefits and facilities
offered to employees by the employer. Through such generous fringe benefits the employer
makes the life worth living for employees. The welfare amenities are extended in addition to
normal wages and other economic rewards available to employees as per the legal provisions.
Welfare measures may also be provided by the government, trade unions and non-government
agencies in addition to the employer. The basic purpose of employee welfare is to enrich the life
of the employees and keep them happy and contended.


Welfare means faring or doing well. It refers to the physical, mental, moral and emotional well-
being of an individual. Further, the term welfare is a relative concept, relative in time and space.
It, therefore, varies from time to time, from region to region and from country to country.

Employee welfare, also referred to as betterment work for employees, relates to taking care of
the well-being of workers by employers, trade unions and government and non-governmental
agencies. It is rather difficult to define the term labour welfare precisely because of the relatively
of the concept.

The Oxford dictionary defines employee welfare as efforts to make life worth living for
workmen. It is however, difficult to precisely define the scope of these efforts. Different writers
have defined it in different ways. Some writers say that only voluntary efforts on the part of
employers to improve the conditions of employment in their factories from the scope of
employee welfare efforts. Some others say that it includes not only voluntary efforts of the
employer but also the minimum standards of hygiene and safely laid down in general legislation.
Here are some of the definitions given by some of the experts.

The labour Investigation Committee preferred to include under Labour Welfare:

Anything done for the intellectual, physical, moral and economic betterment of the workers,
employers, by government or by other agencies over and about what is laid down by law or what
is normally expected of the contractual benefits for which workers may have bargained.

According to the committee and labour welfare services should me:

Such services, facilities, and amenities as adequate canteen, rest and recreation facilities,
sanitary and medical facilities, arrangements foe travel to and from place of work, and for the
accommodation of workers employed at a distance from they homes; and such other services,
amities and facilities, including social security measures, as contribute to the conditions under
which workers are employed

The ILO report refers to labour welfare as:

Such services, facilities, and amenities as may be established in or in the vicinity of under
takings to enable the persons employed in them to perform their work in health, congenial
surroundings and provided with amenities conductive to good health and high morale.

The encyclopedia of social sciences has defined labour welfare work as:

The voluntary efforts of the employers to established, with in the exiting industrial system,
working and some times, living and cultural condition of the employees beyond what is required
by law, the custom of the country and the conditions of the market


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 started that the benefits, which go under this nomenclature, are of great importance to the
worker who is unable to secure by himself. The schemes of labour welfare may be regarded as a
wise investment which should and usually does bring profitable return in the form of greater
efficiency. 20 years later, the planning commission realized the importance of labour welfare,
when it observed in order to get the best out of a worker in the matter of production, working
conditions require to be improved to a large extent. The workers should at least have the means
and facilities to keep him in a state of health and efficiency. This is primarily a question of
adequate nutrition and suitable housing conditions.

The working condition should be such as to safeguard his health and protect him against
occupational hazards. The work place should provide reasonable amenities for his essential
needs. The worker should also be equipped with the necessary technical training and a certain
level of general education.


On the basis of the various definitions, the basic charters tics of labour welfare work may be
noted thus:

a) It is the work, which is usually undertaken with in the premises or in the vicinity of the
undertakings for the benefits employees and the members of their families.
b) The work generally includes those items of welfare which are over and above what is
provided by statutory provisions are required by the custom of the industry or the employees
expect as a results of a contract of services from the employers.
c) The purpose of providing welfare amenities is to bring about the development of the
whole personality of the worker-his social, psychological, economic, moral, and cultural and
intelectual development to make him a good worker, a good citizen and a good member of the
d) These facilities may be provided voluntarily by progressive and enlightened
entrepreneurs at their own accord out of their realization of social responsibility towards labour
statutory provisions may compel them to make these facilities available: or these may be under
taken by the government or trade unions, if they have the necessary funds for the purpose.
e) Labour welfare is a very broad term, covering social securities and such other activities
as medical aid, crches, canteens, recreations, housing, adult education, arrangements for the
transports of labour to and from the work place.
f) It may be noted that not only intra mural but also extra mural, statutory as well as non
statutory activities, undertaken by any of the three agencies- the employers, trade unions or the
government- for the physical and mental development of worker, both as a compensation for
wear and tear the undergoes as part of the production process and also to enable him to sustain
and improve upon the basic capacity of contribution on the processes of production, which are
all the species of the longer family encompassed by the term Labour Welfare


The need for the labour welfare arises from the very nature of the industrial system, which is
characterized by two basic factors ;one, the conditions under which work is carried on are not
congenial for health; and second, when a labourer joins an industry, he has to work on an entirely
strange atmosphere, which create problems of adjustment. One author calls these two factors
the long arm of the job, and the social invasion of the factory.
The working environment in a factory /mine adversely affects the workers health because of the
excessive heat or cold, noise, odours, fumes, dust and lack of sanitation and pure air etc., lead to
occupational hazards. These have, therefore, to be held in check by providing ameliorative
services, protective devices and compensatory benefits following of accident or injury or
disablement. This has been referred to as the long arm of the job which stretches out its adverse
effects on to the worker long after his normal 8-hour work. Hence the need for provision of
welfare services within the premises of the factory, mine or plantation arises.

There is a social reason also as pointed out by the labour Investigation Committee, the provision
of the canteens improves the physique, entertainment reduce the incidence of vices; medical aid
and maternity and child welfare services improve the health of the workers and bring down the
rates of general, maternal and infantile morality; And educational facilities increase their mental
efficiency and economic productivity.


The labour welfare work aims at providing such service facilities and amenities as would enable
the workers employed in industries /factories to perform their work in healthy, congenial
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 because it improves the efficiency of the worker, increases its
availability where it is scarce and keeps him contented .it, therefore, minimizes the inducement
to form or join unions and to resort to strikes.

The aim is partly civic because it develops a sense of responsibilities and dignity among
the workers and thus makes them worthy citizens of nation.
Employee welfare has 2 aspectsnegative and positive.

On the negative side, employee welfare is concerned with counteracting the baneful effects of
the large-scale industrial system of production especially capitalistic, so far as India is concerned
on the personal/family, and social life of the worker. On its positive side, it deals with the
provision of opportunities for the worker and his/her family for a good life as understood in its
most comprehensive sense.

Employee welfare operates to neutralize the harmful effects of large scale industrialization and
urbanization. Provision of welfare amenities enables the workers to live a richer and more
satisfactory life and contributes to their efficiency and productivity. It helps in maintaining
industrial peace.


The meaning of labour welfare may be clearer by listing the activities and facilities, which are
referred to as welfare measures.
A comprehensive list of welfare activities on labour welfare into two broad groups, namely:

1. Welfare measures inside the work place; and

2. Welfare measures outside the work place.

1. Welfare Measures inside the Work Place

a) Conditions of the work Environment

Safety and cleanliness: attention to approaches.
Workshop sanitation and cleanliness.
Control of effluents
Convenience and comfort during work
Distribution of work hours

Workmens safety measures
Supply of necessary beverages
Notice Boards

b) Conveniences

Provision of drinking water

Urinals and bathrooms
Provision for spittoons
Canteen services
Rest rooms and reading rooms

C) Workers Health Services

Factory health center
Emergency aid
Health education
d) Women and Child Welfare

Services Crche and child care

Separate services for woman workers
Family planning
e) Workers recreation

Indoor games; strenuous games to be avoided during intervals of work

f) Economic services

Co -operatives, loans, financial grants

Thrift and savings schemes
Un employment insurance
Profit sharing and bonus schemes
Gratuity and pension

g) Labour management participation

Formation and working of various committees

Workmens arbitration council
Research bureau
h) Workers education

Reading room
Adults education

Daily news review

Factory news bulletin

2. Welfare Measures outside the Work Place

a) Water, sanitation, waste disposal.
b) Roads, lighting, parks, recreation, playgrounds.
c) Schools: nursery, primary, secondary and high school.
d) Markets, co operatives, consumer and credit societies.
e) Bank
f) Transport
g) Communication: post, telegraph and telephone.
h) Health and medical services: dispensary, emergency ward, outpatient and in-patient care,
family visiting, family planning
i) Recreation: games; clubs; craft centers; cultural programmes
j) Watch and ward; security.
k) Administration of community services and problems.

Welfare facilities may also be categorized as (a) intra- mural and (b) extra- mural

Intra-mural facilities
Intra-mural activities consist of facilities provided with in the factories and include medical
facilities, compensation for accidents, provision of crches and canteens, supply of drinking
water, washing and bathing facilities, provision of safety measures, activities relating to
improving conditions of employment, and the like.

Extra-mural facilities

Extra-mural activities cover the services and facilities provided outside the factory such as
housing accommodation, indoor and outdoor recreational facilities, amusement and sports,
educational facilities for adults and children, and the like.
It may be started that the welfare activities may be provided by the employer, the government,
non-government organization and the trade unions, while, what employees provide will be
started later; the activities undertaken by other agencies are mentioned here.


Statutory and non-statutory activities:

Welfare activities may also be classified into

1) Statutory provisions
2) Non-statutory provisions

Statutory provisions

The factories act, 1948; the mines act, 1952; the plantation labour act, 1951; and some other acts
mandate these. Of all these, the factories act is more significant and hence is covered in detail

The factories act:

The act was first conceived in 1881 where legislation was enacted to protect children and to
provide health and safety measures.

Later, hours of work were sought to be regulated and were, therefore, incorporated in the act in

The act was amended and enlarged in 1934 following the recommendations of the royal
commission of the labour. A more comprehensive legislation to regulate working conditions
replaced the act in 1948.

The welfare amenities provided under the act are given below:

a) Washing facilities (S. 42)

b) Facilities for storing and dry clothing (S. 43)
c) Sitting facilities for occasional rest for workers who are obliged to work standing (S. 44)
d) First aid boxes or cupboards- one for every 150 workers and ambulance facilities, if
there are more than 500 workers (S. 45)
e) Canteens, if employing more than 250 workers (S. 46)
f) Shelters, rest rooms and lunchrooms, if employing over 150 workers (S.47)
g) Crche, if employing more than 30 women(S. 48)
h) Welfare officer, if employing 500 or more workers (S.49)

Non-statutory provisions

Non-statutory benefits, also called voluntary benefits, include loans for house building, education
of children; leave travel concession, fair price shops, loans for purchasing personnel conveyance
and a host of other facilities


Schedule 49 of the act provides that in every factory where in 500 or more workers are ordinarily
employed, the employers shall appoint at least one welfare officer. The officer is expected to act
as an advisor, counselor, mediator and liaisoning officer between the management and the
labour. Specifically, his/her duties include the following
1. Supervision of (i) safety, health and welfare programs like housing, recreation, and
sanitation services (ii) working of joint committees; (iii) grant of leave with wages; and (iv)
redressal of workers.
2. Counseling workers in (i) personal and family problems; (ii) adjustment to their work
environment; and (iii) understanding their rights and privileges.
3. Advising management in matters of (i) formulating welfare policies; (ii) apprenticeship
training programs; (iii) complying with statutory obligations to workers; (iv) developing fringe
benefits; and (v) workers education.
4. Laisoning with workers so that they may (i) appreciate the need for harmonious industrial
relations in the plant; (ii) resolved disputes, if any; (iii) understanding the limitations under
which they operate; and (iv) interpret company policies correctly.
5. Laisoning with the management so as to appraise the latter about workers view points on
organization matters


The basic features of labor welfare measures are as follows:

Labor welfare includes various facilities, services and amenities provided to workers for
improving their health, efficiency, economic betterment and social status.
Welfare measures are in addition to regular wages and other economic benefits available
to workers due to legal provisions and collective bargaining
Labor welfare schemes are flexible and ever-changing. New welfare measures are added
to the existing ones from time to time.
Welfare measures may be introduced by the employers, government, employees or by
any social or charitable agency.

The purpose of labor welfare is to bring about the development of the whole personality
of the workers to make a better workforce.
Enabling workers to live richer and more satisfactory lives;
Contributing to the productivity of labour and efficiency of the enterprise;
Enhancing the standard of living of workers by indirectly reducing the burden on their
work they purse;
Enabling workers to live in tune and harmony with services for workers obtaining in the
neighborhood community where similar enterprises are situated;
Based on an intelligent prediction of the future needs of the industrial workers, designing
policies to cushion off and absorb the shocks of industrialization and urbanization to workers;
Fostering administratively viable and essentially developmental outlook among the
workforce; and Discharging social responsibilities.
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 prevalent among the labors such as substance abuse, etc are reduced to a
greater extent by the welfare policies.

The form of labor welfare activities is flexible, elastic and differs from time to time, region to
region, industry to industry and country to country depending upon the value system, level of
education, social customs, and degree of industrialization and general standard of the socio-
economic development of the nation. Seven theories constituting the conceptual frame work of
labour welfare activities are the following:-

The Police Theory:

This is based on the contention that a minimum standard of welfare is necessary for labourers.
Here the assumption is that without policing, that is, without compulsion, employers do not
provide even the minimum facilities for workers.

Apparently, this theory assumes that man is selfish and self centered and always tries to achieve
his own ends, even at the cost of the welfare of others.
According to this theory, owners and managers of industrial undertakings get many opportunities
for exploitation of labour. Hence, the state has to intervene to provide minimum standard of
welfare to the working class.

The Religious Theory: This is based on the concept that man is essentially "a religious animal."
Even today, many acts of man are related to religious sentiments and beliefs. These religious
feelings sometimes prompt an employer to take up welfare activities in the expectation of future
emancipation either in this life or after it.

The Philanthropic Theory: This theory is based on man's love for mankind. Philanthropy
means "Loving mankind." Man is believed to have an instinctive urge by which he strives to
remove the suffering of others and promote their well-being. In fact, the labour welfare
movement began in the early years of the industrial revolution with the support of

The Trusteeship Theory: This is also called the Paternalistic Theory of Labour Welfare.
According to this the industrialist or employer holds the total industrial estate, properties, and
profits accruing from them in a trust.

In other words, the employer should hold the industrial assets for himself, for the benefit of his
workers, and also for society. The main emphasis of this theory is that employers should provide
funds on an ongoing basis for the well-being of their employees.

The Placating Theory: This theory is based on the fact that the labour groups are becoming
demanding and militant and are more conscious of their rights and privileges than ever before.
Their demand for higher wages and better standards of living cannot be ignored. According to
this theory, timely and periodical acts of labour welfare can appease the workers. They are some
kind of pacifiers which come with a friendly 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 of labour, It is obvious
that if an employer takes good care of his workers, they will tend to become more efficient and
will thereby step up production. This theory is a reflection of contemporary support for labour
welfare. It can work well if both the parties have an identical aim in view; that is, higher
production through better welfare. And this will encourage labour's partcipation in welfare


The success of welfare activities depends on the approach which has been taken into account in
providing such activities to the employees. Welfare policy should be guided by idealistic morale
and human value. Every effort should be made to give workers/ employees some voice in the
choice of welfare activities so long as it does not amount to dictation from workers.

There are employers who consider all labour welfare activities as distasteful legal liability. There
are workers who look upon welfare activities in terms of their inherent right. Both parties have to
accept welfare as activities of mutual concern. Constructive and lasting Progress in the matter of
social justice can be achieved only if welfare activities are accepted as essential factors in the

progress of the business organization Labour welfare is dependent on certain basic principles.
The following are the principles on which successful implementation of welfare programmes
depends :

Adequacy of Wages: Labour welfare measures cannot be a substitute for wages. Workers have a
right to adequate wages. But high wage rates alone cannot create healthy atmosphere, nor bring
about a sense of commitment on the part of workers. A combination of social welfare, emotional
welfare and economic welfare together would achieve good results.

Social Liability of Industry: Industry, according to this principle, has an obligation or duty
towards its employees to look after their welfare. The constitution of India also emphasizes this
aspect of labour welfare.

Impact on Efficiency: This plays an important role in welfare services, and is based on the
relationship between welfare and efficiency, though it is difficult to measure this relationship.
Programmes for housing, education and training, the provision of balanced diet and family
planning measures are some of the important programmes of labour welfare which increases the
efficiency of the workers, especially in underdeveloped or developing countries.

Increase in Personality: The development of the human personality is given here as the goal of
industrial welfare which, according to this principle, should counteract the baneful effects of the
industrial system. Therefore, it is necessary to implement labour welfare services. Both inside
and outside the factory, that is, provide intra-mural and extra-mural labour welfare services.

Totality of Welfare: This emphasizes that the concept of labour welfare must spread throughout
the hierarchy of an organization. Employees at all levels must accept this total concept of labour
welfare programme will never really get off the ground.

Co-ordination or Integration: This plays an important role in the success of welfare services.
From this angle, a co-ordinate approach will promote a healthy development of the worker in his
work, home and community. This is essential for the sake of harmony and continuity in labour
welfare services.

Democratic Values: The co-operation of the worker is the basis of this principle. Consultation
with, and the agreement of workers in, the formulation and implementation of labour welfare
services are very necessary for their success. This principle is based on the assumption that the
worker is "a mature and rational individual."

Industrial democracy is the driving force here. Workers also develop a sense of pride when they
are made to feel that labour welfare programmes are created by them and for them.

Responsibility: This recognizes the fact that both employers and workers are responsible for
labour welfare. Trade unions, too, are involved in these programmes in healthy manner, for
basically labour welfare belongs to the domain of trade union activity. Further, when
responsibility is shared by different groups, labour welfare work becomes simpler and easier.

Accountability: This may also be called the Principle of Evaluation. Here, one responsible
person gives an assessment or evaluation of existing welfare services on a periodical basis to a
higher authority. This is very necessary, for then one can judge and analyze the success of labour
welfare programmes.

Timely: The timeliness of any service helps in its success. To identify the labour problem and to
discover what kind of help is necessary to solve it and when to provide this help are all very
necessary in planning labour welfare programmes. Timely action in the proper direction is
essential in any kind of social work.



The preamble to our Indian Constitution promises justice - social, economic and political. It also
stresses Equality of status and of opportunity. Article 23 of the Constitution prohibits traffic in
human beings and forced labour. Article 24 prohibits employment of children in factories. The
article 38 and 39 spelt under Directive Principles of State Policy are now enforceable as per the
dictums laid by our Supreme Court.

Constitution of India, Article 38: State to secure a social order for the promotion of welfare of
the people:

The State shall strive to promote the welfare of the people by securing and protecting as
effectively as it may a social order in which justice, social, economic and political, shall inform
all the institutions of the national life.
The State shall, in particular, strive to minimize the inequalities in income, and endeavor to
eliminate inequalities in status, facilities and opportunities, not only amongst individuals but also
amongst groups of people residing in different areas or engaged in different vocations.

Constitution of India, Article 39: Certain principles of policy to be followed by the State.

The State shall, in particular, direct its policy towards securing

That the citizens, men and women equally, have the right to an adequate means to
That the ownership and control of the material resources of the community are so
distributed as best to sub serve the common good;
That the operation of the economic system does not result in the concentration of wealth
and means of production to the common detriment ;
That there is equal pay for equal work for both men and women;
That the health and strength of workers, men and women, and the tender age of children
are not abused and that citizens are not forced by economic necessity to enter avocations
unsuited to their age or strength
Those children are given opportunities and facilities to develop in a healthy manner and
in conditions of freedom and dignity and that childhood and youth are protected against
exploitation and against moral and material abandonment.
Through social security and social justice are spelt in our Constitution, they are never put into
practice thanks to our Executives who only pretend to implement the programmes of the State.
Some of the important Statutory Welfare measures given by the government are as follows:

(i) The Factories Act of 1948

(ii) The Employees State Insurance Act 1948

(iii) The payment of Wages Act 1936

(iv) The Workmen's Compensation Act 1923

(v) The Employees' Provident Funds and Miscellaneous Provisions Act 1952.

(vi) The Payment of Gratuity Act, 1962

(vii) The Maternity Benefit Act, 1961


Purpose of this Act: An act to consolidate and amend the law regulating labour in factories.The
Factories Act is meant to provide protection to the workers from being exploited by the greedy
business employments and provides for the improvement of working conditions within the
factory premises. The main function of this act is to look after the welfare of the workers, to
protect the workers from exploitations and unhygienic working conditions, to provide safety
measurers and to ensure social justice.

Sections 11 to 20 of the Factories Act deal about Health.


Section 11: Cleanliness

Section 12: Disposal of wastes and effluents

Section 13: Providing proper ventilation and maintaining proper temperature

Section 14: Removal of Dust and fume

Section 15: Providing artificial humidification

Section 16: No Overcrowding

Section 17: Proper Lighting

Section 18: Providing pure Drinking water

Section 19: Providing Latrines and urinals

Section 20: Providing Spittoons


Section 21: Proper Fencing of machinery

Section 22: Precautions - Work on or near machinery in motion

Section 23: No Employment of young persons on dangerous machines

Section 24: Providing Striking gear and devices for cutting off power

Section 25: Precautions near Self-acting machines

Section 26: Casing of new machinery

Section 27: Prohibition of employment of women and children near cotton openers

Section 28: Providing Hoists and lifts

Section 29: Provision for Lifting machines, chains, ropes and lifting tackles

Section 30: Protection near revolving machinery

Section 31: Protection near Pressure plant

Section 32: Provision for Floors, stairs and means of access

Section 33: Providing and precautions near Pits, sumps openings in floors, etc.

Section 34: No Excessive weights

Section 35: Protection of eyes

Section 36: Precautions against dangerous fumes, gases, etc

Section 36A: Precautions regarding the use of portable electric light

Section 37: Explosive or inflammable dust, gas etc.

Section 38: Precautions in case of fire

Section 39: Power to require specifications of defective parts or tests of stability

Section 40: Safety of buildings and machinery.

Section 40A: Maintenance of buildings

Section 40B: Appointment of Safety Officers


Section 42: Providing Washing facilities

Section 43: Providing Facilities for storing and drying clothing

Section 44: Providing Facilities for sitting

Section 45: First-aid appliances to be kept.

Section 46: Canteens at subsidized rates.

Section 47: Shelters, rest rooms and lunch rooms for workmen.

Section 48: Crches for babies of working women.

Section 49: Appointment of Welfare officers.

It is the duty of the Chief Inspector of Factories to ensure enforcement of all the above
provisions of the Factories Act in respect of safety, health and welfare of employees.


Purpose of the Act: An Act to provide for the payment of certain classes of employers to their
workmen of compensation for injury by accident. The workmen's compensation Act 1923 is one
of the earliest pieces of labour legislation. This act encompasses all cases of accidents arising out
of and in course of employment. The rate of Compensation to be paid in a lumpsum is
determined by a schedule provided in the act proportionate to the extent of injury and the loss of
earning capacity. The younger the age of he worker and higher the wage the greater is the
compensation. The Act provides the formula for calculating the compensation. The injured
person can claim compensation and in the case of death, the compensation is claimed by
dependents of the deceased. This law applies to the organized as well as unorganized sectors that
are not covered by the E.S.I. scheme. The following definitions and the sections of law are
presented for the students to take note of them.

Administration: The act is administered by the State Governments which appoint

Commissioners for this purpose under Sec.20 of the Act

Benefits: Under the Act, compensation is payable by the employer to workman for all personal
injuries caused to him by accident arising out of and in the course of his employment which
disable him for more than 3 days. If the workman dies, the compensation is to be paid to his
dependants. The Act distinguishes among three types of injuries: permanent total disablement,
permanent partial disablement and temporary disablement. The amount of compensation to be
paid on the death or disablement of workman is given in Fourth Schedule of the Act and varies
according to his wages, the type of injury and age. It is an obligation upon the employer to make
the payment of compensation within one month from the date on which it falls due.

Sources of Funds: All compensation under the act is payable by the employer.


The Payment of Wages Act was enacted as early as 1936 during the colonial rule. The purpose of
this act is to regulate payment of wages. This insists on the payment of wages by the seventh day
or the tenth day of the succeeding month and in case of weekly payment the last day of the week.

Section 3: Responsibility for payment of wages. - Every employer shall be responsible for the
payment to person employed by him of all wages required to be paid under this Act. Provided
that, in the case of persons employed (otherwise than by a contractor)

In factories, if a person has been named as the manager of the factory under clause of sub-
section (1) of section 7 of the Factories Act, 1948 (63 of 1948)
In industrial or other establishments, if there is a person responsible to the employer for the
supervision and control of the industrial or other establishments upon railways (otherwise
that in factories), if the employer is the railway administration and the railway administration
has nominated a person in this behalf for the local area concerned, the person so named, the
person so responsible to the employer, or the person so nominated, as the case may be (shall
also be responsible) for such payment.

Section 4: Fixation of wage-periods:

Every person responsible for the payment of wages under section 3 shall fix periods (in this
Act referred to as wage-periods) in respect of which such wages shall be payable.
No wage-period shall exceed one month.

Section 5: Time of payment of wages.

The wages of every person employed upon or in

Any railway, factory or {industrial or other establishment} upon or in which less than one
thousand persons are employed, shall be paid before the expiry of the seventh day.

Any other railway, factory or {industrial or other establishment}, shall be paid before the
expiry of the tenth day, after the last day of the wage-period in respect of which the wages
are payable:
(2) Where the employment of any person is terminated by or on behalf of the employer, the
wages,earned by him shall be paid before the expiry of the second working day from the day on
which his employment is terminated.

(3) The State Government may, by general or special order, exempt, to such extent and subject to
such conditions as may be specified in the order, the person responsible for the payment of
wages to persons employed upon any railway (otherwise than in a factory) from the operation of
this section in respect of the wages of any such persons or class of such persons.

(4) Save as otherwise provided in sub-section (2), all payments of wages shall be made on a
working day.


The purpose of this Act: An Act to provide for the institution of Provident Funds, pension
funds and deposit linked fund for employees in factories and other establishments. Contributions
of 10% of the wages are paid by the employer and another 10% by the employees. This amount
is deposited with the government which pays an interest. This Act also now has provisions for
pension scheme.

Administration: The employees Provident Funds, Pension and Insurance Schemes framed under
the Act are administered by a tripartite Central Board of trustee, consisting of representatives of
employers and employees and persons nominated by the Central and State Governments.

Benefits: The act has made schemes for 3 types of benefits, provident fund, family pension and
deposit linked insurance. Family pension is payable to the widow or widower up to the date of
death or re-marriage whichever is earlier. In the absence of the widow or the widower it is
payable to the eldest surviving unmarried daughter until she attains the age of 21 years or marries
whichever is earlier. The dependents of the employee also receive an additional amount known
as the deposit linked insurance which is equivalent to the average balance lying to the credit of
the employee on his provident fund during the preceding 3 years, subject to a maximum of Rs.
10000 provided that such employee has kept a minimum average balance of Rs.1000 in the
provident fund.

Source of Funds: Here both the employer and the employee are required to contribute the
provident fund every month at 8.33% of the basic wages, dearness allowance and retaining
allowance. An employee can make a larger contribution up to 10% but there is no compulsion
for the employer to make a matching contribution.


Purpose of the Act: An act to provide for scheme for the payment of gratuity to employees
engaged in factories, mines, oil fields, plantations, ports, railway companies, shops or other
establishments and matters connected therewith or incidental thereto. Gratuity shall be payable to
an employee on the termination of his employment after he has rendered continuous service for
not less than five years.

(a) On his superannuation

(b) On his retirement or resignation

(c) On his death or disablement

For every completed year of service or part thereof in excess of six months the employer shall
pay gratuity to an employee at the rate of 15 days wages based on the rate of wages last drawn
by the employee concerned.

Section 4: Payment of gratuity.

(1) Gratuity shall be payable to an employee on the termination of his employment after he has
rendered continuous service for not less than five years:

(a) On his superannuation, or

(b) On his retirement or resignation, or

(c) On his death or disablement due to accident or disease;

Provided that the completion of continuous service of five years shall not be necessary where the
termination of the employment of any employee is due to death or disablement; provided further
that in the case of death of the employee, gratuity payable to him shall be paid to his nominee or,
if no nomination has been made, to his heirs, and where any such nominees or heirs is a minor,
the share of such minor, shall be deposited with the controlling authority who shall invest the
same for the benefit of such minor in such bank or other financial institution, as may be
prescribed, until such minor attains majority.

(2) For every completed year of service or part thereof in excess of six months, the employer
shall pay gratuity to an employee at the rate of fifteen days' wages based on the rate of wages last
drawn by the employee concerned; provided that in the case of a piece-rated employee, daily
wages shall be computed on the average of the total wages received by him for a period of three
months immediately preceding the termination of his employment, and, for the purpose, the
wages paid for any overtime work shall not be taken into account; provided further that in the
case of {an employee who is employed in a seasonal establishment and who is not so employed
throughout the year} the employer shall pay the gratuity at the rate of seven days' wages for each

(3) The amount of gratuity payable to an employee shall not exceed {three lakhs and fifty
thousand} rupees.

(4) For the purpose of computing the gratuity payable to an employee who is employed, after his
disablement, on reduced wages, his wages for the period preceding his disablement shall be
taken to be the wages received by him during that period, and his wages for the period
subsequent to his disablement shall be taken to be the wages as so reduced.

(5) Nothing in this section shall affect the right of an employee to receive better terms of gratuity
under any award or agreement or contract with the employer.

(6) Notwithstanding anything contained in sub-section

(a) The gratuity of an employee, whose services have been terminated for any act, willful
omission or negligence causing any damage or loss to, or destruction of, property belonging to
the employer' shall be forfeited to the extent of the damage or loss so caused.

(b) The gratuity payable to an employee {may be wholly or partially forfeited} -

(i) If the services of such employee have been terminated for his riotous or disorderly conduct or
any other act of violence on his part, or

(ii) If the services of such employee have been terminated for any act which constitutes an
offence involving moral turpitude, provided that such offence is committed by him in the course
of his employment.


Purpose of the Act: An Act to regulate the employment of women in certain establishments for
certain period before and after child-birth and to provide for maternity benefit and certain other

Section 4: Employment of or work by, women, prohibited during certain periods

(1) No employer shall knowingly employ a woman in any establishment during the six weeks
immediately following the day of her delivery, (miscarriage or medical termination of

(2) No women shall work in any establishment during the six weeks immediately following the
day of her delivery (miscarriage or medical termination of pregnancy).

(3) Without prejudice to the provisions of section 6, no pregnant women hall, on a request being
made by her in his behalf, is required by her employer to do during the period specified in

(4) Any work which is of an arduous nature or which involves long hours of standing, or which
in any way is likely to interfere with her pregnancy or the normal development of the foetus, or
is likely to cause her miscarriage or otherwise to adversely after her health.

(4) The period referred to in sub-section (3) shall be -

(a) The period of one month immediately proceeding the period of six weeks, before the date of
her expected delivery;

(b) Any period during the said period of six weeks for which the pregnant woman does not avail
of leave of absence under section 6.

Section 5: Right to payment of maternity benefits:

(1) Subject to the provisions of this Act, every woman shall be entitled to, and her employer shall
be liable for, the payment of maternity benefit at the rate of the average daily wage for the period
of her actual absence, that is to say, the period immediately preceding the day of her delivery, the
actual day of her delivery and any period immediately following that day.

(2) No woman shall be entitled to maternity benefit unless she has actually worked in an
establishment of the employer from whom she claims maternity benefit, for a period of not less
than {eighty days} in the twelve months immediately preceding the date of her expected
delivery. Provided that the qualifying period of {eighty days} aforesaid shall not apply to a
woman who has immigrated into the State of Assam and was pregnant at the time of the

(3) The maximum period for which any woman shall be entitled to maternity benefit shall be
twelve weeks of which not more than six weeks shall precede the date of her expected delivery.
Provided that where a woman dies during this period, the maternity benefit shall be payable only
for the days up to and including the day of her death ; Provided further that where a woman,
having been delivered of a child, dies during her delivery or during the period immediately
following the date of her delivery for which she is entitled for the maternity benefit, leaving
behind in either case the child, the employer shall be liable for the maternity benefit for that
entire period but if the child also dies during the said period, then, for the days up to and
including the date of the death of the child.


Purpose of the Act: This Act covers all workers whose wages do not exceed Rs 1600 per month
and who are working in factories, other than seasonal factories, run with power and employing
20 or more workers. The coverage can be extended by the State Government with the approval
of the Central Government.

Administration: The Act is administered by the E.S.I Corporation, an autonomous body

consisting of representatives of the Central and State Governments, employers, employees,
medical profession and Parliament.

Benefits: The Act, which provides for a system of compulsory insurance, is a landmark in the
history of social security legislation in India. An insured person is entitled to receive the
following types of benefits:

Medical Benefit

Sickness Benefit

Maternity Benefit

Disablement benefit

Dependants Benefit

Funeral benefit

Sources of Funds: the Act provides for the setting up of the Employees State Insurance fund
from the contributors received from employers and employees and various grants, donations and
gifts received from Central or State Governments, local authorities and individuals. The rate of
employers contribution is 5% of the wage bill and that of the employees contribution is 2.25%.


These are some of the voluntary welfare measures given by the employer to the employees.

They are as follows:

Housing facilities

Transportation facilities

Medical facilities

Cultural facilities

Recreation facilities

Consumers co-operative society

Loans and various advances

Leave travel concession

Workers education

Schools for the employees children

Gifts to the employees holiday games

Labour welfare fund

Vehicle stand for parking


Gym and health club



I. Using employee volunteering programs to develop leadership skills

Author(s): Christine Bell

Journal: Development and Learning in Organizations

The purpose of the paper was to examine the use of employee volunteering programs to develop
leadership skills.

During the study it was found that employee volunteering programs provide a potentially rich
source of learning for team leaders and other volunteers. Such a strategy can encourage
employees to recognize learning opportunities for their own leadership skills.

II. Moving towards a learning-based organization

Journal: Development and Learning in Organizations

The purpose of the paper was to explore employee perceptions of the development of a learning
culture in a medium-sized manufacturing company aspiring to become a learning organization.

The company was using learning to develop its competitive edge, and employees were at various
stages of understanding and accepting the need for learning and competence development on the
job to sustain and develop the company. During the study a tension was detected between the
company's objectives and the aspirations of some employees, but the majority appeared to accept
the overt learning policy as good for them and the company. This study contributes towards a
better understanding of the perceptions of employees in the development of a learning
organization, rather than from the organizational or management perspectives that tend to
dominate the literature.

III. The impact of downsizing on employees' affective commitment

Author(s): Jaewon Lee, J. Martin Corbett

Journal: Journal of Managerial Psychology

To examine the mechanisms through which downsizing affects employees' affective

commitment to the organization. The results show that the more severe the extent of downsizing,
the lower employees' affective commitment to the organization. Moreover, downsizing has an
impact on employees' affective commitment to the organization through several of the daily
work experiences of employees. Thus, downsizing affects employees' affective commitment to
the organization both directly and indirectly. However, its indirect impact is much stronger.

Sympathetic management of downsizing can minimize the negative impact on the affective
commitment of surviving employees.

IV. How employers can ease pain of job losses

Journal: Development and Learning in Organizations

The purpose of this paper is to examine how employers can ease the job loss situation for
employees. The paper finds that job counseling and training programs may influence different
levels in the labor market. At the macro level, such programs can be vehicles shifting human
resources to where they are needed in the labor market. On the organizational level, they can
enhance human resource utilization, decrease perception of psychological contract breach, and
minimize internal strains and organizational conflict. On the individual level, they appear to be
an efficient way for dealing with the dismissed or remaining workers and helping them in their
quest for a new job or retraining. Consequently, many of the psychological, familial, and social
disturbances brought on by the dismissals, or the organizational crisis, may be avoided.


Labour welfare faculties are the extra service like canteen, creates, education uniforms etc. which
are given to the employees without any reference to the specific work done by them.

Now a days labour welfare faculties provided to the employees have increased as the employers
have became aware of its advantages.
The improvement of human performance depends on how personnel department takes care of
employees attitude and health. The employers welfare program contributes to the morale of
employees. It influences employees attitudes towards the work and work environment. That is
totally it affects the efficiency of the employee.

So I have chosen to study Impact of welfare facilities on employee satisfaction in JK PAPER



The purpose of the study is to get practical and to get practical knowledge and to get experience
and also to know the various Challenges that are found in corporate world.

The main purpose behind choosing this topic was.

To know the impact of welfare facilities on employee satisfaction.

To know employee's expectation towards welfare facilities.

To know the employees opinion about Company.

To know whether career growth opportunity exists in JK Paper Mills.

To know whether clear communication exists between employee-supervisor

Research Methodology:-

Research is one of the most important parts in the survey to collect information and knowledge.
Marketing research is defined as the systematic design, collection, analysis, and reporting of data
and findings relevant to a specific marketing situation facing the company.

Research plan

The research process depends upon developing the most efficient plan for gathering the needed
information. Designing a research plan calls for decisions on the data sources, research
approaches, research instruments, sampling plan, and contact methods.


For any study there must be data for analysis purpose. Without data there is no means of study.
Data collection plays an important role in any study. It can be collected from two sources which are
given below:

Primary Data:

It is the information collected directly without any reference. Primary data are those, which are
collected afresh and for the first time, and thus happens to be original in character.

For example: survey, emails, phone calls etc.

In this study, A structured interview schedule was used to collect the primary data from the
employees of JK Paper Mills. Some of the information was verified and supplemented
through personal observation.

Secondary Data:

Secondary data are those which already been collected by someone else and which already
had been passed through the statistical process.

For example: Internet, web pages and blogs, Published Printed Sources, Published
Electronic Sources, Unpublished Personal Records, Government Records, Public Sector

In this project, the secondary data for the study was collected from annual reports and records of
JK Paper Mills including published material on the topic.
Concerned to my project, I had used the structured questionnaire with open-ended, close ended
and ratings scales where and when necessary. And the questionnaire was addressed to the
employees of JK Paper Mills.

b) Sample design:

Stratified random sampling procedure was followed to select the respondents. A required data
was collected through a schedule. The sample size was 200 and the schedules were given to the
employees in JK Paper Mills.

c) Data Analysis:

Appropriate but simple analytical methods like cross tabulation, pie-charts, bar charts, chi-square
tests, etc. was employed to analyze and interpret the data collected.

Sampling unit: JK PAPER MILLS, New Delhi

Population-Employees of JK PAPER MILLS, New Delhi

Sample size- 200 employees working in organization.


The main purpose of the study was to know the Impact of welfare facilities on employee
satisfaction at JK Paper Mills and also to know the overall opinion of employees about company.

And also to know the career growth opportunity exists in JK Paper Mills and clear
communication exists between workers and supervisors. The study was conducted at JK Paper
Mills company campus by random sampling.


(1) Are you satisfied with transportation facility?
Yes No

If no why? _______________________________________________________

Question No.1 Response No. of Percentage


Options Yes 124 62

No 76 38





From the above graph we can see that, in the total sample size of 100, 62% of employees are

satisfied with transportation facility provided by JK Paper Mills and 32% of the respondents are

not satisfied. Because company at present providing one side bus fare. They want both side bus

fare and employees are expecting that company should purchase new bus.

(1) What is your opinion about the following at canteen?

Particular Highly satisfied Satisfied Not at all satisfied




Sitting Arrangement

Question No.2 Response in %

1 2 3

A 19 51 30

B 29 44 27

C 67 29 04

D 79 21 -



80% 67%
51% 1
60% 44%
30% 2
40% 29% 27% 29%
19% 21% 3
20% 4% 0
A- Price B- Quality C- Cleanliness D- Sitting


From the above graph we can see that 51% of the respondents are satisfied with price of
canteen19% of the respondents is highly satisfied and 30% of respondents are highly satisfied
and 30% of respondents are not at all satisfied.44% of the respondents are satisfied with canteen
quality 29% of the respondents is highly satisfied and 27% of the respondents are not at all
satisfied.67% of the respondents are highly satisfied with cleanliness of the canteen 29% of the
respondents is satisfied and 04% of respondents are not at all satisfied.79% of the respondents
are highly satisfied with sitting arrangement made in canteen and 21% of respondents are

3. Are you satisfied with Medical Facilities?

Yes No

If No Why?________________________________________________________

Response in No. of Percentage


Yes 138 69

No 62 31



No, 31%


Yes, 69%


From the above graph we can see that 69% of respondents are satisfied with medical facilities

provided by the company and 31% of the respondents are not satisfied because there is no

hygiene clinic and non-availability of Doctor. Doctor should available 24 hours.

(4) Drinking water facility.

Particular Highly Satisfied Satisfied nor dissatisfied Not at all satisfied



Hot Water

Response in Percentage

1 2 3

A 53 45 02

B 66 33 01

C 71 21 08



80% 71%

33% 8% C
20% 45% 1%
53% 2%
1- Cleanliness 2- Accessibility 3- Hot Water


From the above graph we can see that 53% of the respondents are highly satisfied with
cleanliness of drinking water 45% of the respondents are satisfied and 2% are not at all satisfied.

Regarding accessibility of the drinking water 66% of the respondents are satisfied are highly
satisfied 33% of them are satisfied and 1% are not at all satisfied.

Above hot water 71% of the respondents are highly satisfied, 21% of the respondents are
satisfied and 8% of respondents are not at all satisfied.

(5) How do you rate the sanitation at JK PAPER MILLS.

Very Bad Very Good

1 2 3 4 5 6 7 8 9 10

Question No.5 Response in %

1 00

2 00

3 00

4 03

5 10

6 12

7 27

8 19

9 12

10 17


30% 27%
20% 19% 17%
15% 12% 12%
5% 3% Series1
0% 0% 0% 0%
1- 2 3 4 5 6 7 8 9 10-
Very Very
Bad Good


27% and 19% (46%) of the respondents are placed 7 & 8th rank respectively as good for
sanitation. 12% & 17% (29%) of the respondents are placed 9&10th rank respectively as very
good, 10%&12% (22%) are placed 5&6th rank respectively as neutral.

(6) Where do you place annual picnic and annual day celebration?

A. Excellent C. Good

B. Very Good D. Average

E. Not experienced
Any suggestions __________________________________________________

Response in No. of Percentage


1 8 4

2 106 53

3 28 14

4 32 16

5 26 13

Total 200 100


5- Not
experienced ,
13% 1-Excellent,
4% 1-Excellent
4- Average, 2- V. Good
16% 3- Good
2- V. Good,
3- Good, 14% 53% 4- Average
5- Not experienced


From the above graph we can see that 53% of the respondent are pleased very good for annual
picnic and annual day celebration, 16% of the respondents are placed average, 14% of the
respondents are placed good 13% of the respondents are not experienced and 04% of respondents
are placed as excellent.

(7) State your satisfaction level towards present welfare facilities.

A. Excellent C. Good
B. Very Good D. Average

E. Not experienced

Response in Respondents Percentage

1 14 7

2 94 47

3 62 31

4 26 13

5 4 2

TOTAL 200 100



10% Series1
1-Excellent 2- V. Good 3- Good 4- Average 5- Not


From the above graph we can see that 47% of the respondents are stated their satisfaction level

very good towards present welfare facilities and 31% of the respondents are stated as good.

(8) Rank on a scale of (1 being highest 7 is last)

A. Canteen [ ]

B. Transportation [ ]

C. Medical facilities [ ]
D. Drinking water [ ]

E. Sanitary [ ]

F. Parties & Picnic [ ]

G. Performance awards [ ]

Question No.8 Response IN Percentage


1 09 20 23 32 06 01 09

2 33 14 11 24 10 02 06

3 26 21 19 19 10 01 04

4 15 29 27 19 05 03 02

5 07 08 12 03 40 12 18

6 07 04 01 02 09 67 10

7 03 04 07 01 20 14 51


1% A-Canteen
9% 9%
6% B-Transportation
C-Medical Facilities
D-Drinking water
F-Parties & Picnic
G-Performance awards


According to the respondents 32% of them placed first preference to the Drinking water, 23% for

Medical facility, 20% for Transportation, 9% for Canteen, 9% for Performance awards, 6% for

Sanitation and 1% for Parties & Picnics. So according to the respondents preference ranks are


(9) How do you feel about working environment?

A. Excellent B. Very Good

C. Good D. Average
E. Poor


1 32 16

2 28 14

3 106 53

4 32 16

5 2 01

Total 200 100


60% 53%
20% 16% 14% 16%
10% 1%
A- B- V. Good C- Good D- Average E- Poor


From the above graph we can come to know that 53% of the respondents are feeling good about

working environment.

16% of the respondents are feeling excellent

16% of the respondents are feeling Average

16% of the respondents are feeling very good

14% of the respondents are feeling poor.

(10) Career growth opportunity exists in the JK Paper Mills.

Strongly disagree Disagree Neither Agree nor Disagree Agree Strongly Agree

Total No. of Response Percentage

1 02 01

2 10 05

3 82 41

4 60 30

5 46 23

Total 200 100



1% 1-Strongly Disagree

23% 5%

3-Neither agree nor

41% Disagree
5-Strongly Agree


From the above graph we can see that 41% respondents are neither agree nor disagree for career

growth opportunity exists in company, 30% of respondents are strongly agreed, 23% of the

respondents are strongly agreed, 5% of the respondents are disagreed and 1% of the respondent

are strongly disagreed.

(11) Are you satisfied with productivity / performance based award.
Completely Satisfied Satisfied Neither Satisfied nor dissatisfied Dissatisfied Completely dissatisfied

No. of Respondents Percentage

1 02 01

2 42 21

3 144 72

4 08 04

5 04 02

Total 200 100



2% 1-Completely Satisfied
4% 21%

3-Niether Agree nor

4- Agree

72% 5Strongly Agree


From the above graph we can see that 72% of the respondents are neither satisfied nor

dissatisfied with productivity performance based award, 21% of the respondents are satisfied 4%

of the respondents are dissatisfied, 2% of the respondents are completely dissatisfied and 1% of

the respondents are completely satisfied.

12. Instructions provided by supervisors are more clear & precise.

Strongly disagree Disagree Neither Agree nor Disagree Agree Strongly Agree

No. of Respondents Percentage

1 02 01

2 06 03

3 14 07

4 104 52

5 76 38

Total 200 100


3% 1-Strongly Disagree

3-Neither agree nor
5-Strongly Agree


From the above graph we can observe that 52% of the respondents are agreed that instructions

provided by supervisors are more clear & praise, 38% of them are strongly agreed, 7% of them

are neither agreed nor disagreed, and 3% of them are disagreed.

13. How do you feel about workload?

A. Excellent B. High

C. Moderate D. Low

No. of Respondents Percentage

1 20 10

2 32 16

3 128 64

4 20 10

Total 200 100


70% 64%
16% Series1
20% 10% 10%
A-Excellent B-High C-Moderate D-Low


From the above graph we can observe that 64% of the respondents are feeling work load is

moderate, 16% of them are feeling high, 10% of them feeling very high and remaining 10% of

the respondents are feeling low.

(14) Overall how do you feel about company?

A. Excellent

B. Very Good

C. Good

D. Poor

No. of Respondents Percentage

1 56 28

2 78 39

3 64 32

4 02 01

Total 200 100


4- Poor

3- Good

2- V. Good Series1


0 10 20 30 40



From the above graph we can observe that 39% of the respondents are feeling very good about

the company overall, 32% of them are feeling good 28% of them excellent and 1% of them

feeling poor.


1. 85% of the employees are satisfied with welfare facilities provided by JK Paper Mills.

2. 97% and 79% of the respondents are satisfied with canteen facility with regard to quality

of food and cleanliness respectively.

3. 62% of the respondents are satisfied with transportation facility.

4. 30% of respondents are agreed & 23% of respondents are strongly agreed that in JK

Paper Mills career growth opportunity exist.

5. 52% of the respondents have agreed that there is a clear communication between

supervision & workers 38% of the respondents are strongly agreed.

6. 39% & 28% of the respondents are feeling very good and excellent respectively about the


7. Employees are expecting following welfare facilities.

a) Companys own bus for transport facilities.

b) Respondents are expecting to reduce prices of canteen food and improve quality

of the food also more verity should be there.

c) In annual day celebration there should be more entertainment programme

d) Employee State Insurance (ESI) facility.

e) Education facility for employees children and

f) Credit society.


1. Company should own their bus and should give employee the free transportation facilities

for both the travel time.

2. Company should provide 24 hours medical facilities with availability of Doctors and

ambulance services. In addition to this, cleanliness should be maintained as Health is


3. Quality of food should be provided with hygiene. Varieties of dishes should be served.

4. The employees should be given recognition for their hard work and they should be proud

being part of the organization.

5. There should be proper communication and good rapport between various departments.

6. These are some expectations of employees.

a) Education facility for their children.

b) Employee State Insurance (ESI) facility.

c) Credit Society.

d) Gymkhana club with indoor and outdoor games.


Welfare facilities are in the interest of the employee, the employer and the society as a whole.

Employees are not only asset to the company but also to raise the standards of the company.

The satisfied employees are asset to company so it is the companys responsibility to see

that the employees are satisfied and their expectation are met.

There will be win win situation if employees expectations and Management expectation

go hand in hand.

The productivity of the company depends on the employees satisfaction.

According to the survey it is clear that most of the employees are satisfied with welfare facilities

provided by the company, if the company provides expected welfare facilitates, it will defiantly

raise the standards of the company and employees will be satisfied.

Sir / Madam,

Employee Name : __________________________________________________________

Employee Number : __________________________________________________________

Department : __________________________________________________________

1) Are you satisfied with transportation facility?

Yes No

If No why? _______________________________________________________

(2) What is your opinion about the following at canteen?

Particular Highly satisfied Satisfied Not at all satisfied




Sitting Arrangement

(3) Are you satisfied with Medical Facilities?

Yes No

If No Why?________________________________________________________

(4) Drinking water facility.

Particular Highly Satisfied Satisfied nor dissatisfied Not at all satisfied



Hot Water

5) How do you rate the sanitation at JK PAPER MILLS.

Very Bad Very Good

1 2 3 4 5 6 7 8 9 10

(6) Where do you place annual picnic and annual day celebration?

A. Excellent C. Good

B. Very Good D. Average

F. Not experienced
Any suggestions __________________________________________________

7) State your satisfaction level towards present welfare facilities.

B. Excellent C. Good
B. Very Good D. Average

E. Not experienced

(8) Rank on a scale of (1 being highest 7 is last)

A. Canteen [ ]

B. Transportation [ ]

C .Medical facilities [ ]
D . Drinking water [ ]

E. Sanitary [ ]

F. Parties & Picnic [ ]

G. Performance awards [ ]

(9) How do you feel about working environment?

A. Excellent B. Very Good

D. Good D. Average
E. Poor

(10) Career growth opportunity exists in the JK PAPER MILLS.

Strongly disagree Disagree Neither Agree nor Disagree Agree Strongly Agree

a. Are you satisfied with productivity / performance based award.

Completely Satisfied Satisfied Neither Satisfied nor dissatisfied Dissatisfied Completely

b. Instructions provided by supervisors are more clear & precise.

Strongly disagree Disagree Neither Agree nor Disagree Agree Strongly Agree

c. How do you feel about workload?

B. Excellent B. High

C. Moderate D. Low

(14) Overall how do you feel about company?

A. Excellent

B. Very Good

C. Good

D. Poor

(15) Any suggestion for welfare facilities.


1. Essentials of Human Resource Management and Industrial Relations

P. Subba Rao

2. Marketing Research

Tull and Hawkins

3. Website

Www. JK