Paper: 01

Human Resource Management

Module: 33
Employee Welfare

Prof. S P Bansal
Principal Investigator Vice Chancellor
Maharaja Agrasen University, Baddi

Prof YoginderVerma
Co-Principal Investigator Pro–Vice Chancellor
Central University of Himachal Pradesh. Kangra. H.P.

Prof. Dr. Rajeev Jain

Paper Coordinator Department of Commerce and Management Studies
University of Kota, Kota

Prof. Dr. Rajeev Jain

Content Writer Department of Commerce and Management Studies
University of Kota, Kota

Items Description of Module

Subject Name Management
Paper Name Human Resource Management
Module Title Employee Welfare
Module Id Module No.33
Pre- Requisites Knowledge of human resource management
Objectives To have a knowledge of various employee welfare schemes
Keywords Employee welfare, welfare schemes, welfare officers

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 QUADRANT-I

Module 33: Employee Welfare

1. Learning Outcome
2. Introduction
3. Features of employee welfare
4. Objectives of employee welfare
5. Employee welfare agencies
6. Labour welfare schemes
7. Labour welfare in India
8. Factories act 1948
9. Principles of employee welfare service
10. Benefits of welfare schemes
11. Summary

1. Learning Outcome

After completing this module the students will be able to:

 Understand the meaning and definition of employee welfare.

 Have a knowledge of the welfare agencies and welfare schemes.
 Have a knowledge of the provisions of employee welfare as given under factories act 1948.

2. Introduction

Industrial progress of a country depends on its committed labour force. In this regard the importance
of labour welfare was recognized as early as 1931 when the Royal commission on Labour stated that
the benefits which undergo this nomenclature are of great importance to the worker who is unable to
secure by themselves. The schemes of labour welfare may be regarded as a wise investment which
usually brings a profitable return in the form of greater efficiency.

Employee welfare means “the efforts to make life worth living for workmen.” According to Todd
“employee welfare means anything done for the comfort and improvement, intellectual or social, of
the employees over and above the wages paid which is not a necessity of the industry.”

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 Employee Welfare

Source: http://amscorporate.in/images/promotion.jpg

3. Features of employee welfare

Employee welfare is a comprehensive term including various services, facilities and amenities
provided to employees for their betterment. It generally includes those items of welfare that is
provided by statutory provisions or required by the customs of the industry or the expectations of
employees from the contract of service from the employers.

The basic purpose is to improve the life of the working class. The purpose of providing welfare
amenities is to bring about the development of the whole personality of the worker-his social,
psychological, economic, moral, cultural and intellectual development to make him a good worker, a
good citizen and a good member of the family.

Employee welfare is a dynamic concept. These facilities may be provided voluntarily by progressive
and enlightened entrepreneurs from their own side out of their realization of social responsibility
towards labour, or statutory provisions may compel them to make these facilities available; or these
may be undertaken by the government or trade unions, if they have the necessary funds for the
purpose.

Employee welfare measures are also known as fringe benefits and services. ‘Labour Welfare’ is a
very broad term, covering social security and such other activities as medical aid, crèches, canteens,
recreation, housing, adult education, arrangements for the transport of labour to and from the
workplace.

4. Objectives of employee welfare

Employee welfare is in the interest of the employee, the employer and the society as a whole. The
labour/employee welfare work aims at providing such service facilities and amenities as would enable
the workers employed in the industries/factories to perform their work in healthy and favourable
surroundings conducive to good health and high morale.

It is partly humanistic, for it enables the workers to enjoy a fuller and richer life.
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 It is partly economic as it improves the efficiency of the worker and keeps him contended and
satisfied. It therefore minimizes the desire of the workers to form unions and to resort to strikes.

The aim is partly civic because it develops a sense of responsibility and dignity amongst the workers
and thus makes them good citizens of the nation.

5. Employee welfare agencies

5.1. Central government

The central government has made elaborate provisions for the health, safety and welfare under
Factories Act 1948, and Mines Act 1952. These acts provide for canteens, crèches, rest rooms,
shelters etc.

5.2. State government

Government in different states and Union Territories provide welfare facilities to workers. State
government prescribes rules for the welfare of the workers and ensures compliance with the
provisions under various labor laws.

5.3. Employers

Employers in India in general looked upon welfare work as fruitless and barren though some of
them indeed had done pioneering work.

5.4. Trade unions

In India, trade unions have done little for the welfare of workers. But few sound and strong
unions have been the pioneering in this respect. E.g. The Ahmedabad textiles labor association
and the Mazdoor Sabha, Kanpur.

5.5. Other agencies

Some philanthropic, charitable social service organizations like: - Seva Sadan society,
Y.M.C.A. etc. are contributing towards employee welfare.

6. Labour welfare schemes

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 Source: http://www.alriyadh.com/media/cache/80/f6/80f60be62454e025a29a2dd80b415b26.jpg

Labour welfare schemes may be statutory, voluntary or mutual

It is statutory when such activities have to be undertaken in lieu of the legislation given by the
government like drinking water facility, giving first aid, electricity etc.

It is voluntary when the activities are undertaken from their own side by the employers, for example
providing flexible timing to the employees, providing them with regular health checkup camp etc. It
is mutual when all parties join hands to bring about the social and economic upliftment of the
workers. On the basis of location of welfare activities .The types of welfare services are as follows:

6.1. Intramural

These are provided within the organization like:

 Canteen

 Rest rooms

 Crèches

 Uniform

 Drinking water

 Washing and bathing facilities

 Provision of safety measures like fencing and covering of machines

 Good layout of machinery and plant

 Fire extinguishers

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  Provision of pension, provident fund, fringe benefits etc.

6.2. Extramural

These are provided outside the organization such as:

 Housing

 Education

 Child welfare

 Leave travel facilities

 Interest free loans

 Workers cooperative stores

 Vocational guidance etc.

7. Labour welfare in India

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 Source:https://princetonacademy.in/wp-content/uploads/2012/05/slide-1-1024.jpg

In recent years Indian organizations have started giving attention to the welfare. The following
facilities are provided in most organizations.

 Educational facilities for the workers and their children in the form of provision of
schools, reading room, libraries, financial assistance etc.

 Medical facilities for workers and their families in the form of well equipped first aid
centres, ambulance rooms, dispensaries for the treatment of diseases like TB, cancer,
leprosy, mental disease etc.

 Transport facilities for workers residing at a long distance and the grant of conveyance
allowance.

 Recreational facilities to provide the worker an opportunity to develop a sense of

physical and mental discipline in the form of music, dance, drama, games and sports,
paintings , hobbies and other cultural activities.

 Housing facilities are made available in the form of self contained tents. They contain
all facilities like electricity, sanitation, water supply etc.

 Consumer cooperative societies which provide members with good quality food grains
and other useful items at reasonable prices.

Accenture in India offers a wide range of employee benefits to suit employee needs, business
requirements and local laws, the company focuses on health and the well being of the employees. It
has created a gymnasium at the office so that the time of employees is saved of going to some private
gym. Various sports facilities are available inside the campus. The company is among the growing
number of organizations that encourages flexi-timing and work from home facility. Employees and
their families are invited for celebrations and the company also has days for bringing family members
to the office.

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 Similarly NIIT led the practice of providing the creative benefits to employees that were designed
around the life stage. The objective was to make the company attractive to work for and also to retain
employees. The list of benefits include: wedding allowances, Little NIITians care aimed at children of
employees, birthday gifts and celebrations and family days.

8. The Factories Act, 1948

Source: https://image.slidesharecdn.com/factoriesact1948-111124065933-phpapp02/95/factories-act-1948-8-728.jpg?cb=1322118422

It contains the following provisions relating to Labour Welfare:

8.1. Facilities:Washing

In every factory (a) adequate and suitable facilities shall be provided and maintained for the use
of workers; (b) separate and adequately screened facilities shall be provided for the use of male
and female workers; (c) such facilities shall be easily accessible and shall be kept clean.

8.2. Facilities for storing and drying clothing:

In every factory provision for suitable place should exist for keeping clothing not worn during
working hours and for the drying of wet clothing.

8.3. Facilities for sitting:

In every factory, suitable arrangements for sitting shall be provided and maintained for all
workers who are obliged to work in a standing position so that the workers may take advantage
of any opportunity for rest which may occur in the course of work. If in any factory workers
can efficiently do their work in a sitting position, the Chief inspector may ask the employer of
the factory to provide such seating arrangements as may be practicable.

8.4. First aid appliances:

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 Under the Act, the provisions for first-aid appliances are necessary. At least one first-aid box or
cupboard with the prescribed contents should be maintained for every 150 workers. It should be
readily available during all working hours.

Each first-aid box or cupboard shall be kept in the charge of a separate responsible person who
holds a certificate in the first-aid treatment recognised by the State Government and who shall
always be readily available during the working hours of the factory.

In every factory wherein more than 500 workers are ordinarily employed there shall be
provided and maintained an ambulance room of the prescribed size containing the prescribed
equipment. The ambulance room shall be in the charge of properly qualified medical and
nursing staff. These facilities shall always be made readily available during the working hours
of the factory.

8.5. Canteens:

In every factory employing more than 250 workers, the State government may make rules
requiring that a canteen or canteens shall be provided for the use of workers. Such rules may
provide for (a) the date by which the canteen shall be provided, (b) the standards in respect of
constitution, accommodation, furniture and other equipment of the canteen; (c) the foodstuffs to
be served therein and charges which may be paid thereof; (d) the constitution of a managing
committee for the canteens and representation of the workers in the management of the canteen;
(e) the items of expenditure in the running of the canteen which are not to be taken into account
in fixing the cost of foodstuffs and which shall be borne by the employer; (f) the delegation to
the Chief inspector, of the power to make rules under clause (c).

8.6. Shelters, rest rooms and lunch rooms:

In every factory wherein more than 150 workers are ordinarily employed, there shall be a
provision for shelters, rest room and a suitable lunch room where workers can eat meals
brought by them with provision for drinking water.

Where a lunch room exists, no worker shall eat any food in the work room. Such shelters or rest
rooms or lunch rooms shall be sufficiently lighted and ventilated and shall be maintained in a
cool and clean condition.

8.7. Crèches:

In every factory where more than 30 women workers are ordinarily employed, a room or rooms
shall be provided and maintained which can be used by their children who are below the age of
6.

Such rooms shall provide adequate accommodation, proper lightning and ventilation,
maintained in clean and proper sanitary conditions and children will be cared by women who
are given adequate training.

The State government may make rules for the provision of additional facilities for the care of
children belonging to women workers:

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  For washing and changing their clothing
 For free milk or refreshment or both for the children, and
 For the mothers of children to feed them at the necessary intervals.

8.8. Welfare officers:

In every factory wherein 500 or more workers are ordinarily employed, the employer shall
employ in the factory such number of welfare officers as may be prescribed under Sec. 49(1).
The State government may prescribe the duties, qualifications and conditions of service of such

officers.

Source:
https://s3.amazonaws.com/s3.timetoast.com/public/uploads/photos/5175097/fac.jpeg?1476757652

9. Principles of Employee Welfare Service

Following are generally given as the principles to be followed in setting up a employee welfare
service:

 The service should satisfy real and individual needs of the workers and this can be done
by the active participation of workers.

 The service should be such as can be handled by cafeteria approach. An employee

benefit plan that allows staff to choose from a variety of benefits to formulate a plan
that best suits their needs. Cafeteria plan options may include health and accident
insurance, cash benefits, tax advantages and/or retirement plan contributions. Due to
the difference in Sex, age, marital status, number of children, type of job and the
income level of employees there are large differences in their choice of a particular
benefit. This is known as the cafeteria approach. Such an approach individualises the
benefit system though it may be difficult to operate and administer.

 The employer should not assume a benevolent posture.

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  The cost of the service should be calculated and its financing established on a sound
basis.

 There should be periodical assessment or evaluation of the service and necessary

corrective action must be taken on the basis of feedback.

10. Benefits of Welfare Scheme

Source: https://www.recruitingbrief.com/thumbs/large/c/5/4/c544cf04d03fd5bd6a785d046f3e787e007a4fb2.jpg

The important benefits of welfare measures can be summarized as follows:

 They provide better physical and mental health to workers and thus promote a healthy
work environment.

 Facilities like housing schemes, medical benefits, and education and recreation
facilities for workers’ families help in raising their standards of living. This makes
workers to pay more attention towards work and thus increases their productivity.

 Employers get stable labor force by providing welfare facilities. Workers take active
interest in their jobs and work with a feeling of involvement and participation.

 Employee welfare measures increase the productivity of organization and promote

healthy industrial relations thereby maintaining industrial peace.

 The social evils common among the labors such as abusing, teasing, etc are reduced to
a greater extent by the welfare policies.

11. Summary
Employee welfare means “the efforts to make life worth living for workmen.” .The labour/employee
welfare work aims at providing such service facilities and amenities as would enable the workers
employed in the industries/factories to perform their work in a healthy and pleasant surroundings
favorable to good health and high morale. Employee welfare measures increase the productivity of
organization and promote healthy industrial relations thereby maintaining industrial peace.
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 Labour welfare schemes may be statutory, voluntary or mutual.

It is statutory when such activities have to be undertaken in lieu of the legislation given by the
government like drinking water facility, first aid, electricity etc.

It is voluntary when the activities are undertaken from their own side by the employers, for example
providing flexible timing to the employees, providing them with regular health checkup camp etc. It
is mutual when all parties join hands to bring about the social and economic upliftment of the
workers. Welfare services can be intramural or extramural. Intramural when provided inside the
organisation like canteens, restrooms, providing uniforms etc. They are extramural when provided
outside the organisation like housing, education, loans etc.

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