Labour Welfare

in India
By
Santosh Bagwe
And
Ameya Kajrolkar
 Labour Welfare and Social Security

A) Labour Welfare

1) Philosophy of Labour Welfare

2) Statutory Welfare Provisions

3) Voluntary Welfare Provisions

4) Labour Welfare Funds

5) Industrial Safety

6) Industrial Health

7) Industrial Hygiene

8) Social Responsibilities of Industry and Trade Unions

B) Social Security

1) Apprenticeship Training

2) The Workmen’s Compensation Act, 1923

3) The Employee’s State Insurance Act, 1948

4) The Employee’s Provident Funds and Miscellaneous Provisions Act, 1952

5) The Maternity Benefit Act, 1961

6) The Payment of Gratuity Act, 1972

Philosophy of Labour Welfare

• Definition

Oxford: “Efforts to make life worth living for workmen”

“Anything done for the intellectual, physical, moral and economic betterment of
the workers, whether by employers, by Government or by other agencies, over
and above what is laid down by law or what is normally expected as part of the
contractual benefits for which the workers may have bargained.”

“It covers all the efforts which employers make for the benefit of their
employees, over and above the minimum standards of working conditions fixed
by Factories Act and over and above the provisions of the social legislations
providing against accident, old age, unemployment and sickness.”

• Scope

a) Welfare amenities within the precincts of the establishment: Latrines, urinals,

washing and bathing facilities, crèches, rest shelters and canteens, drinking
water, uniform, protective clothing and shift allowances

b) Welfare amenities outside the establishment: Maternity Benefits, social

insurance measures like gratuity, pension, provident fund and rehabilitation,
medical facilities, education facilities

• Aims and Objective

1) To win over employees’ loyalty and comate trade unionism

2) To build stable labour force, to reduce labour turnover and absenteeism and
to promote better relations with employees

3) To develop greater efficiency and output form works

4) To save from heavy taxes

5) To create an atmosphere of good-will between labour and management and

also between management and the public
 • Principles

1) Should be pervade the entire hierarchy of an organization

2) Should not bargain labour welfare as a substitute for wages or monetary

incentives

3) Participation of union and works in formulating and implementing labour

welfare programs

4) Periodic assessment or evaluation of welfare measures and necessary timely

improvements

Statutory Welfare Provisions

• First Aid

1) Obligation of employer to provide and maintain first-aid box and medical

appliances

2) No. of boxes: Not less than one for every 150 workers

3) Should be kept in charge of a separate responsible person who holds a

certificate in first aid treatment recognized by State government

4) In case of more than 500 workers, an ambulance room of the prescribed size
and containing prescribed equipment is to be provided under the charge of
qualified medical and nursing staff,

• Shelters, Rest Rooms and Lunch Rooms

1) Obligation of employer employing 150 workers to provide adequate and

suitable shelters or rest rooms and lunch room with provision of drinking
water.

2) For mining industry, it must be provided for mine having more than 50
workers.

3) Separate rest room for women

• Canteen

1) Obligation of employer employing 250 workers to provide canteen as per

approved plan by Factory Inspections having dining hall, kitchen, store rook,
pantry and washing place.
2) Dining Hall must have accommodation for 35% of workmen

3) There are 3 types of canteens

a) Administered directly by employer

b) Run by Contractors

c) Run on cooperative basis by employees or union

• Crèche

1) Setting up of crèches in every factory wherein more than 30 women workers

are employers for the use of children under the age of 6 years

2) The rooms must be adequately lighted and ventilated and under the charge
of women trained in the care of children and infants.

3) It should be conveniently accessible to the mothers of the children.

4) The mother of a child should be allowed two intervals of at least 15 minutes

each to feed the child.

5) For children above 2 years, wholesome refreshment be provided by

employers.

• Welfare Officer

1) Employer should appoint welfare officer having more than 500 workers in
every factory.

2) Qualification:

a) Degree or diploma in social science or labour welfare or social work

b) Knowledge of local language

3) Broad duties of Welfare officer

i) Supervision of safety, health and welfare programs

ii) Counseling workers in personal, family problems and in adjusting to

work environment

iii) Advising management in formulating labour welfare policies and

training programs
iv) Maintaining liaison with workers, management and with other outside
agencies

v) Suggesting measures for promotion of harmonious industrial relations

and general well-being of the workers by adopting various measures in
plant for the redressal of grievances,
Voluntary Welfare Provisions

• Educational Facilities

• Medical Facilities

• Transport Facilities

• Recreational Facilities

• Housing Facilities

• Consumer Cooperative Societies

Labour Welfare Fund

• Centre-wise Labour Welfare Fund

1) The Coal Mines Labour Welfare Fund

2) The Mica Mines Labour Welfare Fund

3) The Iron Ore and Manganese Ore Mines Labour Welfare Fund

4) Beedi Workers Welfare Fund

• State-wise Labour Welfare Fund

1) Maharashtra Labour Welfare Fund

2) Gujarat Labour Welfare Fund

3) Punjab Labour Welfare Fund

4) Assam Tea Plantation Employees’ Welfare Fund

5) U.P. (Sugar & Power Alcohol) Industries Labour Welfare and Development
Fund

6) Kerala Toddy Workers’ Welfare Fund

• Activities conducted under Fund

1) Recreation: Entertainment such as drama, cinema, cultural program;

Games and sports and physical Cultures

2) Community and Social Education: Reading rooms, library, study facility,

exhibitions, book bank, scholarship facility

3) Health: Family planning, child welfare and health education

4) Special Programs: For Women such as vocational classes, employment

oriented training program; For children such as Shishu mandir, outing, mid
day meal
Industrial Safety

• Statutory Safety Provisions

1) Properly fencing of machinery

2) Young persons are not to be employed on dangerous or moving machines.

3) Prohibition of employment of women and children near cotton openers

4) Hoists and lists are to be of good mechanical construction and to be

thoroughly examined by a competent person at least in every period of 6
months

5) Special care is to be taken for protection of eyes from particles or

fragments thrown off in the course of manufacturing

6) Precautions in case of fire

• Safety Officer

1) Appointment of Safety Officer wherein more than 1000 workers are

employer or state government directs to appoint safety officer

2) Role of Safety Officer:

a) To formulate safety procedure, safety policy and assess critically the

safety requirements

b) To act as Chairman or secretary on the Works Safety Committees

c) To administer safety suggestion schemes

d) To organize safety education, training and publicity

e) To investigate the causes of industrial injuries and circumstances

leading to accidents

f) To compile and circulate accident statistics

g) To liaison with government agencies like Inspector of Factories

• National Safety Council

1) Set up in March, 1966 as a voluntary, non-profit making body representing

the Government, Employees and Trade Union representative

2) Services:
a) Publication services like Industrial Safety Chronicles, Technical
Publication

b) Safety Training Services

c) Technical Information Services: name and addresses of manufacturers,

suppliers of personal protective equipments and clothing, machinery
guards

d) Educational services: through posters, mini posters, safety calendars,

national safety day, national contest
Industrial Health

• Statutory Health Provisions

a) Cleanliness

b) Disposal of wastes and effluents

c) Ventilation and temperature

d) Dust and fumes

e) Artificial Humidification

f) Overcrowding

g) Lighting

h) Drinking water

i) Latrines and urinals

j) Spittoons

• Industrial Medical Officer

1) Not compulsory and can be appointed on part time basis

2) He should have good experience in general practice, some special

knowledge of the treatment of injuries and an interest in occupational
hazards.

3) Responsibilities

a) Examination of fresh recruits for employment

b) Immediate treatment of medical and surgical emergencies

c) Examination of persons returning to work after illness

d) Advising management regarding general factory hygiene, health of

workers, occurrence of hazards, factory legislation

e) Medical supervision of canteen

f) Maintenance of case history and medical report of each workers

Industrial Hygiene

• Occupational Hazards

1) Physical Hazards: Heat, Light, Noise and Vibration, Ultra Violet Radiation
and Ionizing Radiation

2) Chemical Hazards: machine oils, rubber, acids, alkalies and limes

3) Biological Hazards

4) Mechanical Hazards

5) Psychological Hazards

• Occupational Diseases

1) Lead poisoning

2) Phosphorus poisoning

3) Mercury poisoning

4) Manganese poisoning

5) Anthrax

6) Silicosis

7) Asbestosis

8) Coal Miners’ Pneumoconiosis

9) Telegraphists Cramps

10) Caisson Disease

11) Byssionosts

• Certifying Surgeon

1) Appointment by State Government

2) Employees engaged in dangerous operations are required to be examined

by Certifying Surgeons once in a year

3) Duties:

a) Examination and certification of young persons

b) Examination of persons engaged in factories which have dangerous
occupations or processes as may be prescribed

c) Exercising medical supervision

Social Responsibilities of Industry and Trade Union

• Social Responsibility of Industry

A. Responsibilities to the Government:

1) Paying full taxes;

2) Active participation in Governments policies and programmes

regarding uplift and development of rural and economically backward
areas.

3) Helping the government in its fight against inflation by active efforts

aimed at industrial growth and price stability.

B. Responsibilities to shareholders:

1) Ensuring adequate returns to the shareholders on their investments

2) Vindication of the trust placed by shareholders on industry by making

safe, dicreet and proper use of their money by aiming for increasing
returns to them through expansion/diversification/increased profit.

C. Responsibilities to Employees:

1) Adequate compensation for their services

2) Employees welfare schemes and amenities such as housing, medical

attention, education

3) Opportunities for advancement in their chosen field and

4) Good working conditions

D. Responsibilities to Customers/ consumers:

1) Supply of quality goods at reasonable prices

2) Reliable after-sales-service

3) Co-operation with consumer’s organizations and

4) Desisting from unfair marketing and advertising practices

E. Responsibilities to public at large

1) The immediate community around the enterprise including developing

and maintaining resources, maintaining and improving the environment,
etc; and

2) The general public including price stability, creation of employment and

self employment opportunities, aid (financial and participative) in times of
natural calamities, etc.

F. Responsibilities to Business and industry itself

1) Survival and development (expansions and diversification) of the

enterprise through adequate ploughing back of profits

2) Development of requisite infra-structure essential to development and

rapid industrialization

3) Active encouragement (not just verbal) for development of ancillary

industries;

4) Desisting from practices which threaten the existence and functioning of

competitors such as under-pricing, package-deal marketing, etc.

5) Research and development activities for developing indigenous

technology to decrease reliance on foreign technology and

6) Expansion of the market, especially through export-oriented marketing

strategies so as to ensure industrial growth.

• Social Responsibility of Trade Union

1) To educate the rank and file workers so that the traditional agitational role
be gradually transformed into one of understanding and co-operation

2) To keep the well-being and progress of the society constantly before them
by way of refraining from unnecessary strikes, rok stoppages, go-slow,
intimidation, etc.

3) To protect the interest of the consumer which is usually lost sight of in

bipartite agreements reached between the parties

4) To discharge their role in the success of the schemes for planned

economic development of the country, maximizing production and
distribution in an equitable manner. According to the first plan document,
 “for the successful execution of the plan, the co-operation of the trade
unions and employers is indispensable” . the second plan document also
emphasized that “ a strong trade union movement is necessary both for
safeguarding the interests of labour and for realizing the targets of
production”.

5) To adapt themselves to changing social needs and to rise above divisive

forces of caste religion and language and to help in promoting national,
social and emotional integration at all levels;

6) To instill in their members a sense of responsibility towards industry and

the community. Further they should seek to harmonize the sectional goals
of their members with the community interest in the larger good of the
society

7) To organize the unorganized sections of the working class in the rural and
urban areas and help these groups in organizing themselves. They should
involve themselves more in the upliftment of those below the poverty line,
rather than strive for achieving more comforts for the privileged section of
the organized labour

8) To encourage capital formation by supporting small savings schemes

9) To support modernization of equipment rationalization programmes, etc.

10) To work for a stable social order by establishing industrial democracy

and social justice and

11) To help in holding the price line by keeping a vigilant watch on prices.
 The Apprentices Act, 1961

Applicability: It is a statutory obligation of every industry/establishment having

training facilities according to syllabus in a designated trade under the
Apprentices Act, 1961 to train a number of apprentices according to ratio of the
trade in their establishment.

Major Compliance:

1) General Obligations:
a) To provide the apprentice with training in his trade in accordance with
Act and rules.
b) To ensure that a qualified person is placed in charge of the training.
c) To carry out obligation under the contract.
2) Registration of contract of apprenticeship:
To send the apprenticeship advisor the contract of apprenticeship within 3
months of date on which it was signed.

3) Payment to apprentice:
To pay to every apprentice during the period of apprenticeship such stipend
at a rate prescribed under the Act.

4) Working hours for apprentice:

a) Total number of hour: 42 to 48 hours per week.
b) Trade apprentice undergoing basic training: 42 hours.
c) Trade apprentice undergoing 2nd year: 42 to 45 hours.
d) Trade apprentice undergoing 3rd and subsequent years: As per the
workers in the trade in the same establishment.
e) No trade apprentice shall be engaged between the hours of 10 p.m. to
5 p.m. without the permission of Apprenticeship Advisor.
f) Graduate or technician apprentice: Normal hours of work of the dept.
5) Health, welfare and safety of apprentice: as per Factories Act.
6) Compensation for injury: as per Workmen Compensation Act.
7) Compensation for termination of apprenticeship: 6 months’ last drawn
stipend by both parties

Note: Apprentices advisors (Inspector) – Labour Minister – Sion Chunabbhati opp.

Priyadarshani Bldg in Mumbai.
 The Contract Labour (Regulation & Abolition) Act, 1970

Applicability:

Applicable to: 1) every establishment in which 20 or more workmen are employed

or were employed on any day of the preceding twelve months as contract labour.

2) every contractor who employs or who employed on any day of the

preceding twelve months twenty or more workman.

Not applicable to: Establishment which carry on work of a casual nature

occasionally.

Effect of non-registration: The principal employer cannot employ contract labour

in establishment.

Major Compliance:

1) It is obligatory on every contractor not to undertake or execute any work

through contract labour without obtaining a valid license from the licensing
officer.
2) Obligation to provide certain amenities:
A) Provision of canteens
B) Rest Rooms
C) Drinking water and other facilities like latrines and urinals
D) First-aid facilities
E) Crèches
3) It is obligatory on principal employer to see that wages of the workers are paid
every month on a fixed date and time and on termination of their employment
before the expiry of 2nd working day after termination.

Maintenance of Records:

Form No. XXIV Half yearly Return in duplicate within 30 days by contractor

Register Particulars

Form No. XII Register of Contractor - Maintained by Principal employer for

each establishment
Form No. XIII Maintained by Contractor for each establishment

Form No. XIV Contractor to issue an employment card to each worker

within 3 days of employment

Form No. XV A service certificate in case of termination of wokman

XVI-A muster roll, XVII-Register of wages, XX-deduction for damange, XXI –

Register of fines, XXII- Register of advances, XXIII-Register of overtime

Notes: Company has to register every year

1) In a year labour should not work above 240 workig days

2) Every 80 days employer should break labour service – need to update every
80 days with the contractor
3) Contractor should pay minimum wages to the labour
The Employee’s Provident Fund & Miscellaneous Provisions Act,1952

Applicability:

1) Applicable to every establishment in which 20 or more persons are

employed.
2) Every employee drawing wages and DA upto Rs.6500/- will be eligible to
become a member.

Main Compliance:

1) Declaration by person taking up employment in writing that whether or

not he is a member of the fund and his account number, particulars of the
last employer.
2) In case of contractor, it is the responsibility of the principal employer to
ensure that provisions of this act are complied by Contractors.

Payment to be made to PF authorities:

Challan No. Payment Particulars Due Date

A/c No.1 Employee and Employer Pf Due 15th of the Following

month

A/c No.2 Admn and Inspection Charge 15th of the Following

month
1.1 % of Salary

A/c No.10 Pension Fund 15th of the Following

month

A/c No.21 Insurance Fund 15th of the Following

month
0.5% of Basic + DA

A/c No.21 Insurance Fund Inspection and 15th of the Following

Admn Charge month

0.01%

Submission of Returns:

Form No. Particulars Due Date

Form 9 Details of employees on the 1st Within 1 month of
day of coverage coverage

Form 2 Nomination Form Immediately on

joining the fund

Form 5 Addition of members 15th of the Following

month

Form 10 Deletion of members 15th of the Following

month

Form 12 Detail of payments made 21st of the Following

month

Form 3A A memberwise ledger cards 31st May Each Year

posted monthly

Form 6A Abstract of Form 3A for the 31st May Each Year

year

Form 5A Return of ownership Once in the beginning

Form 19 Withdrawal of PF in case of

retirement/resignation

Form 13 Transfer of PF

Form 31 Loan (minimum service 5yrs)

Settlement:

1) Settlement before completion of 10yrs

Form 19 (PF withdrawal)

Form 10c (Pension withdrawal)

2) Settlement after completion of 10yrs

Form 19 & 10D

3) Death of the Employee

Form 20 & 10D

Working Notes:

PF contribution by Employer & Employee is 12% on the Basic & DA

6,500/- is a standard amount to calculate pension

Salary Employee - Employer - 12%

12%

(Basic + DA) PF A/c Provident Pension

Fund

Less than 6,500/- 12% 3.67% 8.33%

6,500/- 12% 3.67% 8.33%

More than 6,500/- 12% (Salary x 8.33 % of

12%) – 6,500
(8.33% of
6,500)

Examples: Amt in Rupees

Salary Employee - Employer - 12%

12%

(Basic + DA) PF A/c Provident Pension

Fund

1. 2,500 300 92 208

2. 3,500 420 128 292

3. 7,500 900 359 541

4. 20,000 2,400 1,859 541

1. Employee Contribution

PF = 2,500 x 12% = 300

2. Employer Contribution

PF = 2,500 x 3.67% = 92

Pension = 2,500 x 8.33% = 208

3. Employee Contribution

PF = 7,500 x 12% = 900

Employer Contribution

PF = (7,500 x 12%) = 900 – 541 = 359

Pension = 6,500 x 8.33% = 541

The Employees’ State Insurance Act, 1948

Applicability:

1) Applicable to every establishment in which 20 or more persons are

employed.
2) Every employee drawing wages and DA upto Rs. 10,500/- will be eligible
to become a member.
3) Monthly Challan – 21st of the next month is the last date of submission

Contribution 6.5% of Basic + DA

1.75% deduct from Employee Salary on Basic + DA

4.75% employer contribution

4) Half yearly return – 6A

5) Company should inform within 48 hours to the Factory Inspector and ESIC
inspector if any fatal accident (which can be result into death)

If the person fail to inform it is being created as a death or murder against a

Company
 The Maternity Benefit Act, 1961

Applicability:

1) To every establishment being a factory, mine or plantation including Govt.

establishment and wherein person are employed for the exhibition of
equestrian acrobatic and other performances.
2) To any establishment in which 10 or more persons are employed or were
employed on any day of the preceding 12 months

Prohibition of employment by workmen during certain period:

During 6 weeks immediately following the day of delivery or miscarriage

Prohibition of work by workmen during certain period:

During 1 month immediately preceding the period of six week before the date
of expected delivery, if the work

which is of an arduous nature or

which involved long hours of standing or

which in any way is likely to interfere with her pregnancy or normal

development of the foetus or is likely to cause her miscarriage or to
adversely affect her health.

Payment of Maternity Benefit:

1) Payment of maternity benefits at the rate of the average daily wages for
the period of actual absence.
2) Average daily wages: Wages paid during the period of 3 calendar months
immediately preceding the date of her expected delivery..
3) The workmen must have actually worked for a period of not less than 80
days in the twelve months immediately preceding the date of her
expected delivery.
4) Maximum period entitled: Maximum 12 weeks of which not more than 6
weeks shall precede the date of her expected delivery.
Leave for

1) Miscarriage: 6 weeks immediately following the day of her miscarriage

2) Medical termination of pregnancy: 6 weeks immediately following the day
of her pregnancy.
3) Tubectomy operation: 2 weeks immediately following the day of her
pregnancy.
Nursing Breaks: Every women delivered of a child who returns to duty after
such delivery shall be allowed in the course of her daily work two breaks for
nursing he child until the child attains the age of 15 months
 The Payment of Gratuity Act, 1972

Applicability:

1) To every factory and other establishment in which 10 or more persons are

employed.
2) Once this is applicable, later on even if employees are reduced to less
than, this Act remains applicable.

Main Compliance:

1) Duty of employer to give notice of application of the Act to controlling

authority.
2) Payment to Gratuity:
a) Eligibility: Continuous 5 years of service
b) In case of death of employee, payment has to be made to minor.
c) Amount of Gratuity:
Normal: Last drawn salary/26*15*no of year of service

Seasonal: Last drawn salary/26*7*no of year of service

Salary: Basic+ DA

d) Maximum amount: Rs.350000

e) Time limit: within 30 days of form due date
3) Duty of employer to determine the amount of gratuity and give notice in
writing to the person to whom the gratuity is payable and to the
controlling authority.
4) Duty of the employer to give notice of opening, change or closure of
establishment
5) Duty of the employer to obtain nominations from the employees.

Ex.

If the salary (Bonus + DA) = 5,000

5000/26 (working days) x 15 (days service) x nos of year service completed