Employee welfare

• Employee welfare : Anything done for the comfort

and improvement (intellectual and social) of the
employees – over and above the wages paid,
which might not be a necessity of the industry.
What is employee welfare ?
• Betterment work for employees
• Taking care of the overall well being of the
employee
• Works to improve health, safety, well-being
• Comprehensive term including various services,
benefits & facilities offered to employees
• Extend beyond wages, salaries etc.
• Could also be provided by the government, trade
unions, NGOs

Varies by country, social customs, degree of

industrialization & level of workers
Merits or Advantages
• Motivates & retains employees
• Employee retention
• Increase job satisfaction
• Reduces labor turnover
• Builds loyalty for organization
• May minimize social evils – alcoholism etc.
Demerits
• Cost implications
• Employee dissatisfaction

• Argument : Whether welfare is a state

responsibility or company’s responsibility ?
Types of Welfare Measures
Welfare Measure Inside the workplace

1. Conditions of the work environment a. Safety and cleanliness

b. Housekeeping
c. Control of effluents
d. Convenience and comfort during work
e. Workshop sanitation, lighting, temperature,
humidity and ventilation.
f. Distribution of work hours
g. Safety measures
h. Supply of necessary beverages.

2. Conveniences a. Waste disposal, urinals, etc

b. Drinking water
c. Canteen services

3. Worker’s health services a. Factory health centre, dispensary ,

ambulance, emergency aids, medical
examination, health education.
4. Women & Child welfare a. Maternity aid, child care, creche, separate
services for women
Refer to K Aswathappa
5. Worker’s recreation a. Indoor games
Type of Welfare Measures
outside workplace
• Housing schemes
• Education facilities for children
• Roads, lighting parks, playgrounds
• Schools
• Bank
• Health and medical services
• Transportation
• Sports facilities
Also …
• Welfare activities by the government
1. Factories Act 1948
2. Mines Act of 1952
3. Plantation Act of 1951
4. Contract Labour Act 1970
Factories act, 1948
• Washing facilities
• Facilities for storing and drying clothes
• Sitting facilities
• First aid boxes (150 workers), ambulance (500
workers)
• Canteens (250)
• Shelters, rest rooms, lunch rooms (150)
• Creche (30 women)
• Welfare officer (500)
Labour welfare officer
• Advisor, counsellor, mediator, liaisoning officer
• Supervision of welfare, health and safety
programmes
• Counselling of workers
• Advising management in formulating welfare
policies
• Liaisoning with workers and management
Approaches to Labor Welfare
• Approaches to employee welfare refer to the beliefs
and attitudes held by agencies which provide welfare
facilities. These agencies provide facilities inspired by
various faiths and duties.
1. Policing Theory
• Prevent labor exploitation
• Premise : According to this theory, majority are inclined
towards evil/exploitation & selfish interests.
• Long hours, low pay compared to effort
• Regular supervision by independent inspectors should be
mandatory
Approaches to labor welfare
• Religious Theory : Many acts are related with religious
sentiments and beliefs. Employers take up welfare
activities in anticipation of future emancipation in this
life or after that.
• Philanthropic Theory : Refers to “affection” for
mankind. Strives to remove the sufferings of others
and promotes well being.
• Paternalistic Theory : Also called the trusteeship
theory. Owner feels responsible towards employees
and provides for their well being from companies
funds. Moral responsibility
Approaches to Labor Welfare
• Placating Theory : Appeasement of workers will make
them work well
• Public Relations Theory : Create positive impressions
on the minds of workers and public.
• Functional Theory : Also known as efficiency theory of
labor welfare. To make the workers more efficient. If
workers are treated well, their basic needs are taken
care of and their work conditions are congenial – they
will become more efficient.
• Social Theory : Factory is morally bound to improve
the conditions of society in addition to improving the
condition of its employees.