Employee Welfare

Meaning & definition of Employee

Welfare

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.

Features of Employee
Welfare

Employee welfare is a comprehensive term

including various services, facilities and
amenities provided to employees for their
betterment.
The basic purpose in to improve the lot of the
working class.
Employee welfare is a dynamic concept.
Employee welfare measures are also known as
fringe benefits and services.
Welfare measures may be both voluntary and
statutory

Objectives of Employee Welfare

Employee welfare is in the interest of the employee, the

employer and the society as a whole. The objectives of
employee welfare are: It helps to improve.
* It improves the loyalty and morale of the employees.
* It reduces labor turnover and absenteeism.
* Welfare measures help to improve the goodwill and
public image of the enterprise.
* It helps to improve industrial relations and industrial
peace.
*It helps to improve employee productivity

Agencies of Employee Welfare

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, crches, rest rooms, shelters etc.

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.

3. Employers: - Employers in India in general looked upon welfare

work as fruitless and barren though some of them indeed had
done pioneering work.
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. Other agencies: - Some philanthropic, charitable d social service
organizations like: - Seva Sadan society, Y.M.C.A., etc

Types of Employee Welfare

* Intramural: - These are provided within the
organization like: 1. Canteen,
2. Rest rooms,
3. Crches,
4. Uniform etc.

* Extramural: - These are provided outside the

organization, like: 1. Housing,
2. Education,
3. Child welfare,
4. Leave travel facilities,
5. Interest free loans,
6. Workers cooperative stores,
7. Vocational guidance etc.

Types of Employee Welfare

Statutory welfare work - comprising the legal provisions in
various pieces of labor legislation.

Voluntary welfare work - includes those activities which are

undertaken by employers for their voluntary work.
Different ways of Social Security Provision in India

1. Social Insurance- common fund is established with

periodical contribution from workers out of which all benefits in
terms of
cash or kind are paid.The employers & state prove major portion of
finances.Benifits shuch as PF, Group Insurance etc are offered.

2. Social Assistance- Benefits are offered to persons of small

means by govt out of its general revenues. Eg- Old age pension

Social Security Employee Welfare

Medical care
- Sickness benefit in cash
- Old age pension or retirement benefit
- Invalidity pension
- Maternity benefit
- Accident benefit
- Survivors benefit

Art 41 0f Indian constitution says that the state shall

with in the limits of its economic capacity & develepment,
make effective provision for security , the right to work,
to education & to public assistance in cases of
unemployment, oldage, sickness & disablement & in
other cases of undeserved want

Role of Management in Employee Welfare

Organizations 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 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

Employee Welfare

STATUTORY WELFARE SCHEMES

The statutory welfare schemes include the following provisions:

Drinking Water
Facilities for sitting
First aid appliances
Canteen facilities
Spittoons
Lighting

NON STATUTORY SCHEMES

Personal Health Care (Regular medical check-ups): Some of the

companies provide the facility for extensive health check-up
Flexi-time: The main objective of the flextime policy is to provide
opportunity to employees to work with flexible working schedules
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.

Impact of Welfare on Productivity

The welfare measures aim at integrating the socio-psychological

needs of employees, the unique requirements of a particular
technology, the structure and processes of the organization and
the existing socio-cultural environment.

It creates a culture of work commitment in organizations and

society which ensure higher productivity and greater job
satisfaction to the employees.
Due to the welfare measures, the employees feel that the
management is interested in taking care of the employees that
result in the sincerity, commitment and loyalty of the employees
towards the organization.

The employees work with full enthusiasm and energetic behavior

which results in the increase in production and ultimately the
increased profit.

I L Os Employee Welfare

ILO has suggested welfare funds on a collective basis to

finance activities in small undertakings.
It has adopted a number of convections & recommendations
regarding industrial accidents & occupational health.
New dimension to welfare activities has been provided by
ILOs contribution to family welfare & population education
prog among industrial workers in organised sector in India
It has rendered exemplary service to all 3 elements
composing it govt, employees & workers.
It has greatly influenced labour legislation, labour welfare ,
trade unionism & Industrial Relations in India

CONCLUSION:

TODAY,WELFARE HAS BEEN

GENERALLY ACCEPTED BY THE
EMPLOYERS.EACH EMPLOYER
DEPENDING ON ITS PRIORITIES
GIVES VARIES DEGREE S OF
IMPORTANCE TO LABOUR
WELFARE.

THANK YOU