A STUDY ON NON STATUTORY

WELFARE MEASURES AMONG

EMPLOYEES

EMPLOYEE WELFARE
INTRODUCTION:
Welfare includes anything that is done for the comfort and improvement of employees
and is provided over and above wages. Welfare helps to keep 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 term only but in any forms. Employee welfare includes monitoring of working
conditions, creation of industrial harmony through infrastructure for health, industrial relations &
insurance against disease, accident and unemployment for the workers & their families. Labor
welfare entails all those activities of employees which are directed towards providing the
employees with certain facilities & services in addition to wages & salaries.
An employee who feels appreciated will further be comfortable, satisfied and more
prolific. It has leads not only towards higher productivity but also improves the quality of
performance which helps to capture the market share which is profitable for the company. A
satisfied employee will not look into for other job opportunities and it enables an employer to
keep the best talents and record lower employee turnover. Welfare includes anything that is done
for the comfort and improvement of employees and is facilitated with over and above the wages.
The provision of welfare measures helps in keeping the morale and motivation of the employees
high to retain the employees for a longer duration. The welfare measures need not be in monetary
terms only, it can also be in any 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.
Employee welfare is a comprehensive term including various services, facilities and amenities
provided to employees for their betterment. Welfare measures are something that is available to
employees in addition to regular wages and other economic benefits under legal provisions and

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collective bargaining. The perseverance of employee welfare is to improve the working class
which in turn makes a worker a good employee and a happy citizen. Employee welfare is an
indispensable part of social welfare. It involves a balance between an employee’s work life and
family life to the community or social life.

Objectives of Employee Welfare:

Employees welfare serves the primary objective of the organization, i.e., it enhances the
relationship of the employer and the employees.

Some of the other major objectives of it are as follows:

 Providing Motivation: Employees working in the organization are precious assets, who

need to be motivated from time to time.

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The company can adopt various measures to motivate them; one of the measure amongst them is
providing welfare facilities as described above, i.e., Statutory and voluntary services or facilities.

 Retaining Employees: Companies which knows the value of the talented and

experienced employees provides various facilities to their employees.

So that the employee will remain in the company for a longer period of time as if an employee
will not be satisfied with the organization he/she may switch the organization.

 Increases Productivity: Motivated employees always serves better productivity to

the organization, which enhances the companies as well his personal career growth day by
day.

It is one of the long-term objectives of providing welfare measures to the employees.

 Creating Goodwill: Companies tries to create and maintain their goodwill in the

market full of completion by providing relevant employee benefits to their employees.

It also helps them to attract talented employees to join their company.

 Creates Strong employer-employee bond: Providing employee welfare benefits

acts as a give and take relationship amongst the employer and the employees.

If employees need is taken into consideration by the employer, it builds a strong bond amongst
them and employee also tries to give his/her best for the development of the organization by
showing their involvement in their work and providing relevant results as achievements.

BASIC FEATURES OF LABOUR WELFARE MEASURES:

 Labor welfare includes various facilities, services, activities provided to worker for
improving their health, efficiency, economic betterment and social status.
 Welfare measures are in addition to regular wages and other economic benefits available
to workers due to legal provisions and collective bargaining.

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  Labor welfare measures are flexible and ever-changing. New welfare schemes are added
to the existing ones from time to time.
 Welfare measures may be introduced by the employer, government, employees or by any
social or charitable agency.
 The purpose of labor welfare is to bring about the development of the whole personality
of the workers to make a better workforce.

BENEFITS OF WELFARE MEASURES:

 It provides better physical and mental health worker s this promoting a healthy work
environment.
 It provides facilities like housing schemes, medical benefits, education and recreation
facilities that help in raising their standard of living. They make workers to pay more
attention towards their productivity.
 Employees get stable labor force by providing welfare facilities. Workers take active
interest on their jobs and work with a feeling and participation.
 Employee welfare increases productivity of the organization and promote healthy
industrial relation so as to maintain industrial peace.
 Social evils prevailed among the labors such as substance abusers etc. are reduced to a
greater extent by the welfare policies.

NON-STATUTORY WELFARE MEASURES

Non-statutory welfare measures are generally given to benefit the employees and provide
employees the basic amenities apart from the statutory benefits to increase the employee well-
being and personal life. This was generally prepared by board of directors or top executives to
take a quality decision for the effective control and management of business organizations but not
required under the provisions of any law. These measures are prepared whenever demanded by
the secretary or by the directors or their committees for submission to the shareholders, directors,
employers or committee or sub-committees.

Many non-statutory welfare schemes may include the following schemes:

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 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. Flexible work schedules are
initiated by employees and approved by management to meet business commitments
while supporting employee personal life needs 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.
 Harassment Policy: To protect an employee from harassments of any kind,
guidelines are provided for proper action and also for protecting the aggrieved employee.
 Maternity & Adoption Leave: Employees can avail adoption leaves. Paternity
leave policies have also been introduced by various companies.
 Medic-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
 Employee Referral Scheme: In several company’s employee referral scheme is
implemented to encourage employees to refer friends and relatives for employment in
the organization.