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³EVERY ORGANIZATION HEARS WHAT EMPLOYEES SAYS, GOOD ORGANIZA-

TIONS LISTENS TO WHAT EMPLOYEES HAVE TO SAY BUT ORGANIZATION WITH
EMPLOYEE WELFARE SCHEMES LISTENS WHAT EMPLOYEES DON¶T SAY´

Welfare includes anything that is done for the comfort and improvement of employees and is
provided over and above the wages. Welfare helps in keeping the morale and motivation of the
employees high so as to retain the employees for longer duration. The welfare measures need not
be in monetary terms only but in any kind/forms. Employee welfare includes monitoring of
working conditions, creation of industrial harmony through infrastructure for health, industrial
relations and insurance against disease, accident and unemployment for the workers and their
families.
Labor welfare entails all those activities of employer which are directed towards providing the
employees with certain facilities and services in addition to wages or salaries.

Employee welfare is a comprehensive term including various services, benefits, facilities offered
to employees by the employer. Through such generous fringe benefits, the employer makes life
worth living for employees. The welfare amenities are extended in addition to normal wage and
other economic rewards available to employees as the legal provision. Employee welfare relates
to taking care of well being of workers. It is also provided by the government, trade unions and
nongovernment agencies in addition to the employer. It is referred to as betterment work for em-
ployees.

According to royal commission on labor, labor welfare is a term which must necessarily be elas-
tic, bearing a somewhat different interpretation in one country from another, according to differ-
ent social customs, the degree of industrialization and educational level of workers.

The basic features of labor welfare measures are as follows:

1.V Labor welfare includes various facilities, services and amenities provided to workers for
improving their health, efficiency, economic betterment and social status.
2.V Welfare measures are in addition to regular wages and other economic benefits available
to workers due to legal provisions and collective bargaining
3.V Labor welfare schemes are flexible and ever-changing. New welfare measures are added
to the existing ones from time to time.
4.V Welfare measures may be introduced by the employers, government, employees or by
any social or charitable agency.
5.V The purpose of labor welfare is to bring about the development of the whole personality
of the workers to make a better workforce.
~

 


The organization, when working towards employee welfare, usually has the following objec-
tives:

1.V To provide better life and health to the workers

2.V To make the workers happy and satisfied
3.V To relieve workers from industrial fatigue and to improve intellectual, cultural and ma-
terial conditions of living of the workers.
4.V To give expression to philanthropic and paternalistic feelings.
5.V To win over employee¶s loyalty and increase their morale.
6.V To combat trade unionism and socialist ideas.
7.V To build up stable labor force, to reduce labor turnover and absenteeism.
8.V To develop efficiency and productivity among workers.
9.V To save oneself from heavy taxes on surplus profits.
10.VTo earn goodwill and enhance public image.
11.VTo reduce the threat of further government intervention.
12.VTo make recruitment more effective (because these benefits add to job appeal).

d 

 
ollowing are generally given as the principles to be followed in setting up a employee welfare
service:
1.V The service should satisfy real needs of the workers. This means that the manager must
first determine what the employee¶s real needs are with the active participation of work-
ers.
2.V The service should be such as can be handled by cafeteria approach. Due to the differ-
ence 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 individualizes the benefit system
though it may be difficult to operate and administer
3.V The employer should not assume a benevolent posture.
4.V The cost of the service should be calculated and its financing established on a sound ba-
sis.
5.V There should be periodical assessment or evaluation of the service and necessary timely
on the basis of feedback.

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~rganizations provide welfare facilities to their employees to keep their motivation levels high.
The employee welfare schemes can be classified into two categories viz. statutory and non-
statutory welfare schemes. The statutory schemes are those schemes that are compulsory to pro-
vide by an organization as compliance to the laws governing employee health and safety. These
include provisions provided in industrial acts like actories Act 1948, Dock Workers Act (safety,
health and welfare) 1986, Mines Act 1962. The non statutory schemes differ from organization
to organization and from industry to industry.

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The statutory welfare schemes include the following provisions:

1.V ©


At all the working places safe hygienic drinking water should be pro-
vided.
2.V 


  


In every organization, especially factories, suitable seating ar-
rangements are to be provided.
3.V 
 
 

irst aid appliances are to be provided and should be readily as-
sessable so that in case of any minor accident initial medication can be provided to the
needed employee.
4.V {
 

A sufficient number of latrines and urinals are to be provided in
the office and factory premises and are also to be maintained in a neat and clean condi-
tion.
5.V  



Cafeteria or canteens are to be provided by the employer so as to pro-
vide hygienic and nutritious food to the employees.
6.V 

In every work place, such as ware houses, store places, in the dock area and
office premises spittoons are to be provided in convenient places and same are to be
maintained in a hygienic condition.
7.V {


Proper and sufficient lights are to be provided for employees so that they can
work safely during the night shifts.
8.V  

Adequate washing places such as bathrooms, wash basins with tap and
tap on the stand pipe are provided in the port area in the vicinity of the work places.
9.V 
 
Adequate changing rooms are to be provided for workers to change
their cloth in the factory area and office premises. Adequate lockers are also provided to
the workers to keep their clothes and belongings.
10.VP  
Adequate numbers of restrooms are provided to the workers with provisions
of water supply, wash basins, toilets, bathrooms, etc.

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Many non statutory welfare schemes may include the following schemes:

1.V d      P    
   

Some of the companies provide
the facility for extensive health check-up
 2.V  


The main objective of the flextime policy is to provide opportunity to em-
ployees to work with flexible working schedules. lexible work schedules are initiated by
employees and approved by management to meet business commitments while support-
ing employee personal life needs
3.V " 
 d  
Various assistant programs are arranged like external
counseling service so that employees or members of their immediate family can get
counseling on various matters.
4.V     d

To protect an employee from harassments of any kind, guidelines
are provided for proper action and also for protecting the aggrieved employee.
5.V M 

{   Employees can avail maternity or adoption leaves. Pa-
ternity leave policies have also been introduced by various companies.
6.V M 

      
This insurance scheme provides adequate insurance
coverage of employees for expenses related to hospitalization due to illness, disease or in-
jury or pregnancy.
7.V "  P    
In several companies employee referral scheme is imple-
mented to encourage employees to refer friends and relatives for employment in the or-
ganization.




 
The employee welfare schemes have following advantages:

ëV They provide better physical and mental health to workers and thus promote a healthy
work environment
ëV acilities 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.
ëV Employers get stable labor force by providing welfare facilities. Workers take active in-
terest in their jobs and work with a feeling of involvement and participation.
ëV Employee welfare measures increase the productivity of organization and promote
healthy industrial relations thereby maintaining industrial peace.
ëV The social evils prevalent among the labors such as substance abuse, etc are reduced to a
greater extent by the welfare policies.
ëV Also it acts as a very important motivating factor for employees.

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Although, employee welfare services are very advantageous, it also has certain disadvantages:

ëV It requires a huge investment

 ëV It might result in dissatisfaction of employees i.e. if they have the feeling that they are
given less extra benefits.


 
Council of Labor Affairs has given some employee welfare measures to be followed by all the
organizations:

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V V The disbursed scopes, items and ratios of the employees' welfare fund are given in accor-
dance with Paragraph 1, Article 7 of Employees' Welfare und Act as follows:

I.V ñ 
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A.V Welfare benefits: Wedding, funeral, bearing benefits for injury and disease, emer-
gency aid and loan, disaster assistance etc.
B.V Educational grants: Subsidies for employees' advanced study and educational fees
for their children etc.
C.V Recreation activities: Culture and health activities, group activities, tourism and
recreation facilities etc.
D.V ~ther welfare items: estival grants, interests subsidy for the housing loan, em-
ployees' deposit insurance, purchasing house with employee deposit, child-care
and spouse dependants subsidies, retired employees' benefits and other benefits
etc.
II.V ñ 
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All above kinds of disbursed ratios shall not be limited, except the total amount of all
kinds of disbursed ratios shall not exceed 100% of the amount of the employees' welfare
income of current year. The employees' welfare fund shall be issued to the employees by
cash, based on the principle of directness and universality. In addition, the issued fund
shall not exceed 40% of the amount of the employee welfare income of the current year.

Employees' welfare fund capital

All factories, mines in the public and private sectors, or other enterprise organizations shall set-
aside and allocate the first employees' welfare fund, which shall be allocated one time enough in
accordance with the amount of paid-in capital, not allocted by years. The amount of first paid-in
capital shall not be less than 1/4 of the total registered capital as ruled by the Company Act in
case of reestablishment.
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In accordance with the Paragraph 1, Article 7 of Employees¶ Welfare unds Act, the disbursed
scopes, items and ratios of cumulative employees' welfare fund are given as follows.

I.V If the cumulative employees' welfare fund in past years is within 50%, the securitiesshall
be purchased.
II.V The purchase of disbursed securities and dispositions shall be conducted in accordance
with the following regulations:
A.V The employees' welfare committee of institutions shall obtain the agreement of
half of presented commissioners, in which 2/3 of all commissioners shall attend
while purchase the securities. And the disbursement shall be dealt with the same
way.
B.V The purchase of securities of cumulative employee welfare fund is limited:
a.V Government bond.
b.V Treasury.
c.V Transferable fixed deposit.
d.V Bank acceptance.
e.V Commercial issued paper issued by a bank or financial institution.
f.V inancial bond issued by a financial institution.

The preceding Paragraph of issued securities¶ companies in items 4-6 of Subsec-

tion 2 must be ranked in the certain credited level that recognized by the Depart-
ment of inance.

C.V Limits of any interested persons who purchased the securities of cumulative em-
ployee welfare fund:
a.V The employees' welfare fund shall not purchase the issued securities by
the business entities or the relevant interested companies.
b.V The called interested companies refer to one of following circumstances:
1.V Business entities with the relation specified in Section 1, Chapter 6
of the Company Act.
2.V The company of the interested company is that the director, super-
visor or others who hold more than 50% stocks of this business
entity.
3.V The company of the interested company is that the director, super-
visor or managerial officers and directors, supervisors, managerial
officers of other company or shareholder who hold more than 10%
issued stock of this business entity is the same person, or with the
spouse relationship. The director or supervisor is the legal person,
his/her representative or assigned representative exercises the duty
 who shall be followed the regulations of the original directors or
supervisor.

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  % The Rules have been prescribed pursuant to Article 5 of Employees¶ Welfare und
Act.

 
 & The Rules shall include the following:

1.V Name of the Committee

2.V Address of the Committee
3.V ~rganization of the Committee and handling of affairs
4.V Number of members and term of Committee
5.V Appointment, dismissal and recall of, and resignation by members
6.V Norms of meetings
7.V Safekeeping and withdrawal of the und
8.V Welfare facilities

 
 ' The Committee of factories, mines, and other business entities shall appoint from seven
to a maximum of twenty-one members. The Committee of business entities having one thousand
or more employees may appoint up to a maximum of thirty-one members.

 
 (The Committee may appoint one of the committee members as the ex officio member.
All other members are determined as described below:

1.V ñ     
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2.V or business entities without a union, the committee members are determined by the
business entity and the welfare committee. In this case, the method used to select mem-
bers is determined by the business entity. Labor representatives are elected by all em-
ployees.

Substitute members should be also be elected at the same time. The number of substitute mem-
bers shall not exceed one-third of all members.

 
  * Two or more business entities may jointly form one committee for the convenience,
with members elected according to the previous two articles.

 
 + The Committee has one chairperson in charge of committee affairs. A deputy chairper-
son may be appointed. Both are elected by members.
Committee memberships are positions without pay, with terms ranging from one to three years.
The term begins from the day they assume office. This day shall not be beyond the fourteenth
day from the day of the last term expired.

No more than two-thirds of members shall rerun and be reelected. The ex officio member¶s term
is not limited.

 
  , After new chairperson takes over, the Committee shall complete transferring docu-
ments regarding the und and other assets within ten days following the change of chairperson.

or failure to complete the transfer within ten days for legitimate reasons, the new chairperson
shall submit a report to competent authorities with reasons included.

 
  - In case the chairperson cannot perform duties for some reason, the deputy (chairper-
son) shall take over. A chairperson shall be elected if there is no deputy.

When the number of members falls below half of required number, the original Committee shall
be notified to elect new members to make up for the difference.

 
  . The Committee shall hold election of members thirty days before existing members¶
term expires. Competent authorities shall notify committees having not held such election fifteen
days before expiry to hold the election within fifteen days. or committees that fail to comply,
competent authorities may designate personnel to hold such election.

 
 %/ The Committee meets every three months. When necessary, an ad hoc meeting shall
be called.

Member meetings are called by the chairperson.

Chairperson shall call an ad hoc meeting within seven days following written appeal by one third
of members.

or chairperson failing to call a periodic or ad hoc meeting for no legitimate reasons, a report
may be filed with competent authorities after being approved by one third of members. Compe-
tent authorities may designate one of the members to call the meeting.

 
  %% The Committee shall submit the following information to competent authorities for
review:

1.V Rules and regulations

2.V Rosters of members and staff
3.V Address of the Committee
 4.V Date on which the Committee was established

In the event of change(s) to the first three items above, a report shall be presented to Competent
authorities.

 
 %& Responsibilities of the Committee are as follow:

1.V Review, promotion, and supervision of employees¶ welfare undertakings

2.V Planning, custody, and withdrawal of the und
3.V Distribution, audit, and revenues and expenditures of the funds of employee welfare un-
dertakings
4.V ~ther issues related to employee welfare

 
 %' The Committee shall draw up plans and prepare budgets for the next year within one
month before end of the year, to be passed by member meeting resolutions and submitted to
Competent authorities for review. Within three months following end of year, the Committee
shall submit a report on execution of plans and budgets to competent authorities for review, with
a copy sent to the business entity to which it belongs.

 
 %( The Committee may set up an employee welfare cooperative.

 
  %* Prior to setting up an employee welfare cooperative, relevant information shall be

submitted to Competent authorities for registration and supervision.

 
  %+ The Cooperative shall provide the following services based on employee needs and
funding:

1.V Canteen
2.V Dormitory or housing
3.V Haircut
4.V Daycare or kindergarten
5.V Laundry
6.V Library
7.V Recreation
8.V Supply of articles of daily use
9.V ~ther services regarding employee welfare

Recipients of above services are limited to the business entity¶s employees and their dependants.
The Cooperative shall be self-sufficient without siphoning monies from the und for its opera-
tion.
 
  %,The Committee may have one chief executive instated to assist the chairperson in
running daily business. Several staff members under the chief executive are grouped to help run
Committee business.

The Cooperative is headed by one person, in charge of the Cooperative, with several staff mem-
bers under him/her.

Chairperson of the Committee shall request the business entity to which it belongs to elect em-
ployees for above positions, working part-time. Business entities having five hundred or more
employees may have one to five employees taking up these positions full-time

 
  %-or unions organized by workers who have no definite employers, their welfare
committee members shall be elected according to the rules drawn up by the union, to be carried
out in accordance with the Rules.

 
 %. The Rules take effect from the day they are published.

V
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