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Acknowledgement:-
We would like to take this opportunity to express our deep gratitude to all those who have offered their valuable help and time to help us complete the project. We would like to thank Prof. I.S SINGH(Project Guide) for providing us the support and guidance in the project, for providing us the necessary information and motivation to go about the project and sparing his valuable time to share his knowledge about the topic in depth. We would also like to thank IIPM Ahmedabad, who gave us this opportunity to prove our talent and provided a platform for development.
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ABSTRACT: Labour sector addresses multi-dimensional socio-economic aspects affecting labour welfare, productivity, living standards of labour force and social security. To raise living standards of the work force and achieve higher productivity, skill up gradation through suitable training is of utmost importance. Manpower development to provide adequate labor force of appropriate skills and quality to different sectors is essential for rapid socioeconomic development. Employment generation in all the productive sectors is one of the basic objectives. In this context, efforts are being made for providing the environment for self-employment both in urban and rural areas. During the Ninth Plan period, elimination of undesirable practices such as child labour, bonded labour, and aspects such as ensuring workers safety and social security, looking after labour welfare and providing of the necessary support measures for sorting out problems relating to employment of both men and women workers in different sectors has received priority attention.
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Objective of study: To understand the employee welfare schemes and their benefits to employee
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Sr.no 1 2 3 4.
Contents
Page no. 6 8 10 34 34
Theory Support history Introduction to welfare schemes Research methodology a) Sources of data b) Tools and technique
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Theory Support
Industrial Relations Industrial Relations refer o a dynamic and developing concept which is not limited to the complex of relations between trade unions and management but also refers to the general web of relationships normally obtaining between employers and employees a web much more complex than the simple concept of labor capital - T.N Kapoor
Nature of Industrial Relations Industrial Relations are always a mix of cooperation and conflict. How ever much cooperation may be sought as organizational objectives, some conflict will always remain. This situation is emanating from the following reasons. 1. The management and the labor or the unions develop different orientations and perceptions of their interest. They also develop generally negative images about each other. 2. There is absence of mutually accepted yardsticks or norms to tell to the two groups management and labor how far they should go in the pursuit of their objectives. In the absence of norms both group claim complete rationality for their demands. 3. There is no neutral field for the groups to meet on. This means that whenever the two groups meet each other for negotiations they bring with them some carry over from the past besides their inherent distrust and suspicion for each other.
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HISTORY
Labour welfare activity in india was largely influenced by humanitarian principles and legislation. During early period of industry development ,efforts towards worker,s welfare as made lagerly by social workers ,philanthropists and other religious leaders mostly on humanitarian ground. Before independence The movement to improve the working condition of Indian labour started passing of first Indian factories act in 1881.the deporable condition in which labour worked in textile mills in Bombay during those days, as testified by the factory commission of 1875 was the immediate cause for passing of the act The factories act1892 was passed as a result of the recommendation of the Bombay factory commission of 1884 and the factory labour commission of 1890.it applied to all factories employing 50 person or more.the lower limit for children were raised to 9 and 14respectively and their hours of work were limited to 7. Women are allowed to work for 11 hourin a day.provision relating to better ventilation ,cleanliness and for preventing overcrowding in factories were also made. After independence After independence ,the labour welfare movement acquired new dimension . it was realized that labour welfare had appositive role to play in increasing productivity and reducing industrial relation Mainly on the basis of the recommendation of rage committee, the government of India enacted the factories act,1948 to draft this important piece of legislation ,the services of sir willfrid garret were utilized Various labour welfare activities are incorporated in different five year plan: First five year plan(1951-56): it paid considerable attention to welfare of working class Second five year plan(1956-61): it paid attention to the tmportance of beter working condition has been progressively recognized Third five year plan(1961-660: it stressed the need for more effective implementation of
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various statuatory welfare provision. Fourth five year plan(1966-74): it provided for the expansion of the employees state scheme to cover medical faciliiesnto the family insured persons. Five year plan:it also laid down programmes for labour welfare
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Better working environment can act as a great employee retention tool. A few years ago, this statement would have been limited to HR policies and the different incentives offered by a company. However, in the present scenario, the emphasis is more on providing the best infrastructure and good working conditions (like better hygiene) to retain employees. It is a proven fact that the productivity of employees depends on their work surroundings and the morale that they have. Most companies are trying to blend
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better facilities and pleasure with work. Welfare schemes can be classified into two categories viz. statutory and non-statutory welfare schemes. The statutory schemes are those schemes that are compulsory to provide by an organization as compliance to the laws governing employee health and safety. These include provisions provided in industrial acts like Factories Act 1948, Dock Workers Act (safety, health and welfare) 1986, Mines Act 1962. The non statutory schemes differ from organization to organization and from industry to industry.
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STATUTORYWELFARESCHEMES
The statutory welfare schemes include the following provisions: 1. Drinking Water: At all the working places safe hygienic drinking water should be provided. 2. Facilities for sitting: In every organization, especially factories, suitable seating arrangements are to be provided. 3. First aid appliances: First aid appliances are to be provided and should be readily assessable so that in case of any minor accident initial medication can be provided to the needed employee. 4. Latrines and Urinals: 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 condition. 5. Canteen facilities: Cafeteria or canteens are to be provided by the employer so as to provide hygienic and nutritious food to the employees. 6. Spittoons: 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. Lighting: Proper and sufficient lights are to be provided for employees so that they can work safely during the night shifts. 8. Washing places: 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. Changing rooms: 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. Rest rooms: Adequate numbers of restrooms are provided to the workers with provisions of water supply, wash basins, toilets, bathrooms, etc.
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NONSTATUTORYSCHEMES
Many non statutory welfare schemes may include the following schemes: 1. Personal Health Care (Regular medical check-ups): Some of the companies provide the facility for extensive health check-up 2. Flexi-time: The main objective of the flextime policy is to provide opportunity to employees to work with flexible working schedules. Flexible work schedules are initiated by employees and approved by management to meet business commitments while supporting employee personal life needs 3. Employee Assistance Programs: Various assistant programs are arranged like external counseling service so that employees or members of their immediate family can get counseling on various matters. 4. Harassment Policy: To protect an employee from harassments of any kind, guidelines are provided for proper action and also for protecting the aggrieved employee. 5. Maternity & Adoption Leave Employees can avail maternity or adoption leaves. Paternity leave policies have also been introduced by various companies. 6. Medi-claim Insurance Scheme: This insurance scheme provides adequate insurance coverage of employees for expenses related to hospitalization due to illness, disease or injury or pregnancy. 7. Employee Referral Scheme: In several companies employee referral scheme is implemented to encourage employees to refer friends and relatives for employment in the organization.
Thus above where the statutory and non statutory benefits and now there are various welfare act , which are included in welfare schemes they are as follows:
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Applicability Every establishment in which 20 or more workmen are employed or were employed on any day of the preceding 12 months as contract labour. Every contractor who employs or who employed on any day of the preceding twelve months 20 or more workmen. Sec. 1
Registration of Establishment Principal employer employing 20 or more workers through the contractor or the contractor(s) on deposit of required fee in Form 1 Sec. 7 Licensing of Contractor Engaging 20 or more than 20 workers and on deposit of required fee in Form IV Valid for specified period.Sec.12, Rule 21 Welfare measures to be taken by the Contractor Contract labour either one hundred or more employed by a contractor for one or more canteens shall be provided and maintained. First Aid facilities. Number of rest-rooms as required under the Act . Drinking water, latrines and washing facilities. Sec. 16 & 17
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RATES OF CONTRIBUCTION SCHEME EMPLOYEES EMPLOYERS Amount > 8.33% (in case where contribution is 12% of 10%) 10% (in case of certain Establishments as per details given earlier) CENTRAL GOVTS
NIL
Insurance Scheme
Pension Scheme
NIL
1.16%
Clarification about Contribution After revision in wage ceiling fromRs.5000 to Rs.6500 w.e.f. 1.6.2001 per month, the government will continue to contribute 1.16% upto the actual wage of maximum Rs.6500 per month towards Employees Pension Scheme.The employers share in the Pension Scheme will be Rs.541 w.e.f. 1.6.2001.Under Employees Deposit-Linked Insurance Scheme the contribution @0.50% is required to be paid upto a maximum limit of Rs.6500. The employer also will pay administrative charges @ 0.01% on maximum limit of Rs.6500 whereas an exempted establishment will payinspection charges @ 0.005% on the total wages paid. The above clarification is given by taking wages upto a maximum of Rs.6500 towards wage (basic+DA). Since an excluded employee i.e. drawing wages more than Rs.6500 can also
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become member of the Fund and the Schemes on joint request and if, for instance, such an employee is getting Rs.10,000 per month, his share towards provident fund contribution will be Rs.1200 e.g. 12% and employers share towards provident fund contributioin will be Rs.659 and Rs.541 towards Employees Pension Fund.
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Safety Measures Facing of machinery Work on near machinery in motion. Employment prohibition of young persons on dangerous machines. Striking gear and devices for cutting off power. Welfare Measures Washing facilities Facilities for storing and drying clothing Facilities for sitting First-aid appliances one first aid box not less than one for every 150 workers. Canteens when there are 250 or more workers. Shelters, rest rooms and lunch rooms when there are 150 or more workers. Creches when there are 30 or more women workers.
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Working Hours, Spread Over & Overtime of Adults Weekly hours not more than 48. Daily hours, not more than 9 hours. Intervals for rest at least hour on working for 5 hours. Spreadover not more than 10 hours. Overlapping shifts prohibited. Extra wages for overtime double than normal rate of wages. Restrictions on employment of women before 6AM and beyond 7 PM. Secs. 51, 54 to 56, 59 & 60 Employment of Young Persons Prohibition of employment of young children e.g. 14 years. Non-adult workers to carry tokens e.g. certificate of fitness. Working hours for children not more than 4 hrs. and not permitted to work during night shift. Secs. 51, 54 to 56, 59 & 60
Annual Leave with Wages A worker having worked for 240 days @ one day for every 20 days and for a child One day for working of 15 days. Accumulation of leave for 30 days. Secs. 79
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Power of Labour Court to give appropriate relief Labour Court/Industrial Tribunal can modify the punishment of dismissal or discharge of workmen and give appropriate Lay off & Payment of Compensation Conditions for Laying off Failure, refusal or inability of an employer to provide work due to Shortage of coal, power or raw material. Accumulation of stocks. Breakdown of machinery. Natural calamity. Sec.25-C Prohibition of Strikes & Lock Outs Without giving to the employer notice of strike, as hereinafter provided, within six weeks before striking. Within fourteen days of giving such notice. Before the expiry of the date of strike specified in any such notice as aforesaid. During the pendency of any conciliation proceedings before a conciliation officer and seven days after the conclusion of such proceedings.
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During the pendency of conciliation proceedings before a Board and seven days after the conclusion of such proceedings. During the pendency of proceedings before a Labour Court, Tribunal or National Tribunal and two months, after the conclusion of such proceedings. During the pendency of arbitration proceedings before an arbitrator and two months after the conclusion of such proceedings, where a notification has been issued under Sub-Section(3A) of section 10A During any period in which a settlement or award is in operation, in respect of any of the matters covered by the settlement or award. Secs.22&23
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Object of the Act To protect the dignity of motherhood and the dignity of a new persons birth by providing for the full and healthy maintenance of the woman and her child at this important time when she is not working. Coverage of the Act Upon all women employees either employed directly or through contractor except domestic women employees employed in mines, factories, plantations and also in other establishments if the State Government so decides. Therefore, if the State Government decides to apply this Act to women employees in shops and commercial establishments, they also will get the benefit of this Act. Bihar, Punjab Haryana, West Bengal, U.P., Orissa and Andhra have done so. Conditions for eligibility of benefits Women indulging temporary of unmarried are eligible for maternity benefit when she is expecting a child and has worked for her employer for at least 80 days in the 12 months immediately proceeding the date of her expected delivery Cash Benefits Leave with average pay for six weeks before the delivery. Leave with average pay for six weeks after the delivery. A medical bonus of Rs.25 if the employer does not provide free medical care to the woman. An additional leave with pay up to one month if the woman shows proof of illness due to the pregnancy, delivery, miscarriage, or premature birth. In case of miscarriage, six weeks leave with average pay from the date of miscarriage.
Non Cash Benefits/Privilege Light work for ten weeks (six weeks plus one month) before the date of her expected delivery, if she asks for it. Two nursing breaks in the course of her daily work until the child is 15 months old. No discharge or dismissal while she is on maternity leave.
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No change to her disadvantage in any of the conditions of her employment while on maternity leave. Pregnant women discharged or dismissed may still claim maternity benefit from the employer.
Exception : Women dismissed for gross misconduct lose their right under the Act for Maternity Benefit Conditions for eligibility of benefits Ten weeks before the date of her expected delivery, she may ask the employer to give her light work for a month. At that time she should produce a certificate that she is pregnant. She should give written notice to the employer about seven weeks before the date of her delivery that she will be absent for six weeks before and after her delivery. She should also name the person to whom payment will be made in case she can not take it herself. She should take the payment for the first six weeks before she goes on leave She will get payment for the six weeks after child-birth within 48 hours of giving proof that she has had a child. She will be entitled to two nursing breaks of fifteen minutes each in the course of her daily work till her child is fifteen months old. Her employer cannot discharge her or change her conditions of service while Leave for Miscarriage Leave with wages at the rate of maternity benefit, for a period of six weeks immediately following the day of her miscarriage or her medical termination of pregnancy. Entitled to leave with wages at the rate of maternity benefit for a period of two weeks immediately following the day of her tubectomy operation. Leave for illness arising out of pregnancy etc. A woman suffering from illness arising our of pregnancy, delivery, premature birth of child (Miscarriage, medical termination of pregnancy or tubectomy operation) be entitled, in addition to the period of absence allowed to her leave with wages at the rate of maternity benefit for a maximum period of one month. Sec. 10
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Procedure for fixing and revising Minimum Rates of Wages Appointing Committee issue of Notification etc. Sec. 5 Composition of Committee Representation of employer and employee in schedule employer in equal number and independent persons not exceeding 1/3rd or its total number one such person to be appointed by the Chairman. Sec. 9 Payment of Minimum Rates of Wages Employer to pay to every employee engated in schedule employment at a rate not less than minimum rates of wages as fixed by Notification by not making deduction other than prescribed. Sec.12 Fixing Hours for Normal Working Shall constitute a normal working day inclusive of one or more specified intervals. To provide for a day of rest in every period of seven days with remuneration. To provide for payment for work on a day of rest at a rate not less than the overtime rate..
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Sec. 13
Overtime To be fixed by the hour, by the day or by such a longer wage period works on any day in excess of the number of hours constituting normal working day. Payment for every hour or for part of an hour so worked in excess at the overtime rate double of the ordinary rate of (1 times or for agriculture labour) Sec. 5
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Payment of Minimum Bonus 8.33% of the salary or Rs.100 (on completion of 5 years after 1st Accounting year even if there is no profit) Sec.10 Eligible Employees Employees drawing wages upto Rs.3500 per month or less. For calculation purposes Rs.2500 per month maximum will be taken even if an employee is drawing upto Rs.3500 per month. Sec.12 Note: The proposal to enhance the existing ceiling of Rs.3500 is under active consideration by the Govt. Time Limit for Payment of Bonus Within 8 months from the close of accounting y ear. Sec. 19
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Maximum Ceiling Rs.3,50,000 Mode of payment Cash or, if so desired, by Bank Draft or Cheque
Recovery of Gratuity To apply within 30 days in Form I when not paid within 30 days Forfeiture of Gratuity On termination of an employee for moral turpitude or riotous or disorderly behaviour. Wholly or partially for wilfully causing loss,destruction of property etc Protection of Gratuity Cant be attached in execution of any decree
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Procedure for calculation Higher the age Lower the compensation Relevant factor specified in second column of Schedule IV giving slabs depending upon the age of the concerned workman. Example : In case of death. Wages Rs.3000 PM Age 23 years Factor as schedule IV Rs.19.95 Amount of compensation Rs.329935 In case of total disablement Rs.395910.
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When an employee is not liable for compensation In respect of any injury which does result in the total or partial disablement of the workman for a period exceeding three days. In respect of any injury, not resulting in death or permanent total disablement caused by an accident which is directly attributable to The workman having been at the time thereof under the influence of drink or drugs, or Willful disobedience of the workman to an order expressly given, or to a rule expressly framed, for the purpose of securing the safety of workmen, or Willful removal or disregard by the workman of any safety guard or other device which he knew to have been provided for the purpose of securing the safety of workman. Sec.3(a) & (b Wages When the monthly wages are more than Rs.4000 per month it will be deemed Rs.4000. Sec.4 Exh.b
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RESEARCH METHODOLOGY
SOURCE OF DATA
a. SURVEY METHOD Data are usually collected through the use of questionnaires. The data is collected by mean of simple survey done in the companyof the employee. b. CROSS-SECTIONAL SURVEYS Cross-sectional surveys are used to gather information on a population at a single point in time. The employee were surveyed to find out how much company provide welfare schemes. A different cross-sectional survey questionnaire might try to determine the relationship between two factors
SAMPLE SIZE A sample size of 22 was considered in this project. That is, a total number of respondents were 22for survey. TIME TAKEN The time of research was 1 .5 month. The research was based on the change in of customers for the products in scheme.
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QUESTIONNARIE AND PERSONAL INTERVIEW Questionnaire and Personal interviews in which we have taken 22 sample size of two companies and from which 10 + 10 where of middle level management and also bottom level but 1+1 where the two managers of same company.
OBSERVATION OF EMPLOYEE 1. What is he looking in the company? 2. Is he loyal? 3. Is he more interested in work and perform responsibility,
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above 55 18%
45-55 32%
35-45 23%
Analysis: There is the higher ratio of Employee working in the company of age 45-55 are more as it shown above 45-55 then 35-45 this means senior and experencied people are there in company.
Gender
male female
Analysis: Male employees are more than females as it shown above that male are 59% whereas female are only 41%, thus it says that this companies are giving the equal opportunity
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Education:
above p.g 9% p.g 14% below ssc 14% below ssc hsc 27% hsc graduation p.g above p.g
graduation 36%
Analysis: Mostly employee are educated upto graduation as it is 36% it means employee understand rules, norms and right of the company but here it shows that higher ratio is all about under graduation so company should provide some of the ways by which employee can study further too. Example like Gyanodaya Which of the following facilities are provided by the company?
20 18 16 14 12 10 8 6 4 2 0 19 16 17 16 13 9 6 5 6 3 13
12 10
8
health insurance
Analysis: Lighting and ventilation, safe drinking/ rest room, conductive working condition and uniform are mostly facilities to all employees as it shown above figure. Manager of both
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company response are they provide all the facilities to all employee in this content but however housing, and healh insurance are not provided to all employee
How much you rate the following welfare schemes provided by company?
14 12 10 8 6 4 2 0 highly satisfied satisfied moderately satisfied
career growth work env safety pratices stff benevolent aprrecion andrecognisation storying faciliies rteriment benefit washing allow. night allow. canteen susidy uniformallow. fes tivalallow. seprate rest room for men and women grevience handling sitting facilities lunch facilities housing facilities sanitary facilities seperatelockers facilities to me and women transport facilities work shift allow,
Analysis :all statement like carrer growth, appreciation ,reteritment benefit,separate rest room for men and women, separate lockers facilities for men and women are mostly moderately satisfied,all other satisment are mostly satisfied accept housing facilities as employee are highly dissatisfied . From manager response all facilities are provided by both company are
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satisfied. But from view point of employee some facilities like housing facilities they are highly dissatisfied , so In regards to it company should provide the better housing facilities
FINDING
The ratios of male employee are more than female. Education up to graduation help employee to understand rules ,norms and rights but also we found the higher ratio about 55 % are under graduate Training to employee are more feasible as most of educated till graduation , so company are getting the training deliverables Manger and employee view are different. We found that there is yet unawareness in employees about various benefits that they are getting, that which were said by manager. Thus view points are different. Manager likes to disclose all information by convincing that our employees are key to the organization but fact is that there is problem among manager, trade union and employee Facilities like health insurance and housing facilities are not provided to all employee Workers are also dissatisfied through the working conditions. Dissatisfaction of housing facilities and moderate satisfaction of other facilities show need of improvement in welfare schemes
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Suggestion
1. As we have found that ratio of women employee is almost 41% thus it seems that Company is giving the chance of equal opportunity thus many candidates would be attracted towards it and company would be getting nice pool of talent and employees are also satisfied as they are working in the company where all are getting equal opportunity. 2. Education up to graduation help employee to understand rules ,norms and rights but what we suggest that there else ratio of 55% who are under graduate company should encourage employee education and various in house courses so that they can groom them self like Gyanodhyay. 3. Head should resolve the problem among employees, trade union and manager by bringing the arbitrator too. 4. As there is higher level of dissatisfaction in employees among the health policy so company should change their health schemes and should brings various checkup camp for employee and their family 5. Management and workers views are been differing from what management is saying but seeing to the analysis it is suggested that management should discuss various issues of welfare with workers. 6. There is lack of awareness among employees about various welfare shemes that are been provided to employee, so because of unawareness company should conduct various awareness programmes about various welfare scheme , so that misunderstandings between employee and management may be reduce. 7. As employees are still dissatisfied from the working conditions management should conduct the survey that on which all area employees are not satisfied and try to sort out it. 8. Company should look matter why employees are not satisfied so they have to take review what is difference between what company provided and what employee expect
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9. There should be kind of interaction between the employee and the top-management in a week/month, so that employee could come with their problem or could share their problem, which will help to improve their working skill and make them comfortable with their work. 10. Also we suggest that company should try to organize parties or picnics in a year or occasionally these facilities should be provided with a view to inculcating a sense of belongingness, openness, and freedom, among employees. These activities help employees to understand others better.
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CONCLUSION
Employee welfare programs are also important part of every organization it helps to motivated the employee & boost up the employee morale so that the organizational goal could be achieved. This welfare programs helps the management to motivate the employees by identifying & satisfying their unsatisfied needs. Employees are the essential part of any organization, so companies try to concentrate on the welfare of the employees. Some information about employee welfare: Employee welfare is a comprehensive term including various services, benefits and facilities offered to employees & by the employers. Through such generous fringe benefits the employer makes life worth living for employees. Thus it .. 1. Enables workers to have a richer and more satisfying life. 2. Raise the standard of living of the workers by indirectly reducing the burden on their pocket. 3. Absorbs the shocks injected by industrialization and urbanization of workers. 4. Promotes a sense of belonging among workers. 5. Prevent social evil like drinking, gambling etc.
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Bibliography
Industrial Relations By A.H.Sharma Welfare Laws - E.HANUMANTH F.No.22040/31/2007-NGO/ Government of India - Ministry of Tribal Affairs www.Hrnext.com www.humanlinks.com www.hr.com
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Annexure
We the student of IIPM, conducting the research on EMPLOYEE WELFARE SCHEMES. All the information taken here by is only for academic purpose and is not going to be disclosed. Thank you for your co-operation.
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II/ Welfare questions Which of the following facilities are provided by the company?
yes Conducive working conditions Lighting and ventilation Safe Drinking water/ Rest room Housing Recreation Uniform Health Insurance
no
No option
Satisfied
Moderately Satisfied
Dissatisfied
Highly Dissatisfied
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growth Work environment of company Safety practices for the welfare of its workers Staff benevolent
Recreation facilities by employees Educational assistance provided for childrens education Appreciation and recogization given to employees for their excellence Facilities for Storying and drying Retirement benefit HRA Washing allowance
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Festival allowance Separate rest room facitility for men and women Training program conducted Counseling process First aid The grievance handling procedure in the company Sitting facilities Lunch room facilities Housing facilities Separate Sanitary latrines for men and women Separate lockers facilities for men and women Transport facilities Work shift timing Kindly give your suggestions for any desired improvements in the current welfare system
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