Q 1) Enumerate on various principles of Labour Welfare?

Introduction: Labour Welfare is an aid in the form of money or necessities for those in need. It
provide facilities to labourers in order to improve their working conditions, provide social security
and raise their standard of living.

Principles of Labour Welfare:

The following principles should be kept in mind and properly followed to achieve successful
implementation of welfare programs:

1. Principles of social responsibility of industry.

2. Principle to totality of welfare
3. Principle of accountability
4. Principle of timeliness
5. Principle of responsibility
6. Principle of association or democratic value
7. Principle of efficiency
8. Principle of co-ordination or integration
9. Principle of adequacy of wages
10. Principle of re-personalization
11. Principle of self-help.

1. Principles of social responsibility of industry

Industry is a sub system of the society. It draws its manpower from the society. Obviously, industry
has an obligation or duty towards its employees to look after their welfare. According to this
principle, to provide welfare facilities to the employees is a social responsibility of the industry.

2. Principle of totality of welfare

According to this principle, labour welfare activities and facilities must be extended to all employees
of the organization. This is because the goal of the organization will not be achieved even if a section
of the employees are unable to counteract the baneful effects of industrial system.

3. Principle of accountability

This principle suggests that the welfare programmes must be evaluated periodically. This is very
much necessary to judge and analyse the success of welfare programme.

4. Principle of timeliness

The timeliness of any welfare programme help in its success. Timely action in proper direction is
essential in the success of any kind of welfare activities.

5. Principle of responsibility

This principle is based on the assumption that labour welfare is the joint responsibility of employers
and employees. According to this principle, labour welfare becomes the simple and easiest task,
because the responsibility is shared by different groups.
 6. Principles of association or democratic value

For the success of a welfare programme, association of employees in planning, organizing and
implementation is most essential. Employees, who have associated in planning, organizing and
implementation of welfare activities, get keenly interested in the welfare programmes to make it a
success

7. Principle of efficiency

Efficiency of the workers and welfare facilities are interdependent. Hence, principle of efficiency
plays an important role in organizing welfare facilities in the industry. Employers quite often provide
welfare facilities to their employees as it would increase their efficiency which would in turn lead to
increase in productivity.

8. Principle of co-ordination or integration

The Principle of coordination or integration plays an important role in the success of welfare
programmes. Welfare measures to be effective need a co-ordination or integration approach. This
will promote a healthy development of the employees in their work, home and community.

9. Principle of adequacy of wages

According to this principle, workers have a right to adequate wages. Labour welfare facilities must
be provided over and above the adequate wages. That means labour welfare measures cannot be a
substitute for wages. At the same time, it is also true that high wage rate alone cannot create
healthy atmosphere nor bring about a sense of commitment on the part of workers. A combination
of wages and labour welfare together would achieve good results.

10. Principle of re-personalization

This principle suggests that the goal of labour welfare should be the overall development of the
employees. According to this principle, labour welfare measures help the workers to resist the
poisonous effect of industrial system. Therefore, it is necessary to organize labour welfare activities
both inside and outside the factory.

11. Principle of self help

This Principle suggests that the labour welfare must aim at helping employees to help themselves in
future. This helps employees to become more responsible and more efficient.

Labour welfare is a part of social welfare both conceptually & operationally. It covers state of well-
being, happiness, satisfaction, conservation & Development of human Resources.
Q2) Explain the duties and responsibilities of Welfare Officer?

The Indian Factories Act 1948, made it obligatory on the part of the employers to appoint welfare
officers to look after the labour welfare activities in the factories where 500 or more than 500
workers are employed. Thus the appointment of labour welfare officer is a statutory requirement.
He works with human resource officer to solve the labour - related problems. He should act as an
advisor, counselor, mediator between the management and the labour, for improving the
efficiency, productivity and profitability of organization.

Professionally he or she should be post graduate in social science, diploma in labour welfare,
recognized by the State Government, 3-5 years working experience in Industrial Safety and finally
having hard working ability and sound communication skills.

MAIN OBJECTIVES OF THE POSITION

a) To eliminate the evils of the jobber system in the recruitment of labour.

b) To develop and improve the labour administration in mills / factory.
c) To serve as a liaison with the State Labour Commissioner

Duties and responsibilities of labour welfare officer:

1. To encourage the formation of workers and joint production committees, cooperative

societies, safety and welfare committees and supervise their works.
2. To advise and assist the management in the fulfilment of obligations, statutory or otherwise,
concerning the application of provisions of the Factories Act, 1948, and the rules made there
under and the medical services concerning medical examination of employees, records,
supervision of hazardous jobs, visiting the sick, accident prevention, supervision of safety
committees, safety education and investigation of accidents.
3. To promote relation between management and workers which will ensure productivity,
efficiency as well as ameliorate the working conditions and to help workers to adjust and
adapt themselves to their working environments.
4. To establish contacts and hold consultations with a view to maintain harmonious relations
between the management and the workers.
5. To advise and assist management in the provision of amenities such as canteens, shelters for
rest, crèches, adequate latrine facilities, drinking water, sickness and benevolent schemes,
payments, pension and superannuation funds, and gratuity payments.
6. To bring to the notice of workers their rights and liabilities, under standing orders of the
establishment and other rules which grant rights to define the duties of workers, or which
are directed to the discipline, safety and protection of workers and establishment.
7. To advise and assist the management in providing welfare facilities such as housing facilities,
food, social and recreational facilities, sanitation, education of children and advise on
individual personal problems.
8. To suggest measures which will serve to raise the standard of living of workers, and in
general, promote their well-being.
 9. To bring to the notice of the management the grievances of workers, individual as well as
collective, with a view to securing their expeditious redressal.
10. To advise workers against going on illegal strikes and the management against illegal lock-
outs and to help in preventing anti-social activities.
11. To study and understand the point of view of labour in order to help the management to
shape and formulate labour policies and interpret their policies to the workers in the
language they can understand.
12. To help the management in regulating the grant of leave with wages and explain to the
workers in the matter of submission of application for grant of leave for regulating
authorized absence.
13. To maintain an impartial attitude during illegal strikes, lockouts and help to bring about a
peaceful settlement.
The functions of the Welfare Officer

The functions of a Welfare Officer can be broadly classified into the following categories:

a) Labour welfare (welfare function).

b) Labour administration (personnel function)
c) Labour relation (conciliation function).

1. Labour welfare (welfare function): Welfare Officer advises and provides assistance in
implementing legislatives and non-legislative provisions relating to health, safety, welfare,
hours of work, leave, and formation of welfare committees.

2. Labour administration (personnel function): Welfare Officer is held responsible for labour
administration such as organizational discipline, safety and medical administration, and
liaison, wage and salary administration, and education of workers.

3. Labour relations (conciliation function): Welfare Officer renders some of the labour relations
activity such as settlement of grievances, administration, education of workers and
settlement of disputes, and promotion of harmonious labour-management relations. He/she
also works as staff advisor or specialist.

Conclusion

In short, the task of labour welfare officer include executing policies regarding working conditions,
welfare etc of workers in industrial undertaking. Also maintaining liaison between management &
labour and promoting harmonious relation between them.
Q3) Discuss the functional theory of Labour welfare?

Labour welfare activities are organized to attract better and qualified workers. Such activities have
made it possible for employees to persuade workers to accept show off and advertise their concern
for labour welfare by organizing labour welfare activities. Thus, it can be said that the motive behind
welfare activities are often complex, for the belief varies from person to person. There are seven
approaches to the philosophy of theory of labour welfare. These are:

1. Philanthropic theory
2. Religious theory
3. Paternalistic or trusteeship theory
4. Public relations theory
5. The functional theory
6. The policing theory
7. Placating theory

a) Philanthropic Theory

Philanthropic, means loving mankind. The philanthropic theory is based on man’s love for mankind.
Man is believed to have spontaneous urge to better the lot of his fellow beings. For this reason man
strives to remove suffering of others and promote their well beings. Explained from this point of
view, labour welfare activities could be act of pity on the part of employees who want to remove the
sufferings to their workers.

b) Religious Theory

Many human behaviours are influenced by religious sentiments and beliefs. Owners, as human
beings do subscribe to religious sentiments and beliefs. These religious feelings, sometimes prompt
an employer to take up welfare activities in the expectation of future benefits in this life and in
future life. And closely allied to this religious theory, we could also recognize the atonement theory.
According to this theory, some employers are prompted to take up welfare activities in a spirit of
atonement for their sins.

c) Paternalistic or trusteeship Theory

According to this theory, the industrialists or the employers hold the total industrial estate,
properties and profits accruing from them in trust. He holds the property not only for his but also for
the benefit of his workers. Another assumption of this theory is that the workers are like minors;
they are ignorant because of lack of education and are not able to look after their own interests.
Owners, therefore have the moral responsibility to look after the interests of their workers.

d) Public relation theory

According to this theory, labour welfare activities are organized by the employers to create goodwill
between workers and management and between management and public. Labour welfare
programmes work as a sort of an advertisement and help employees to build up good and healthy
public relations.
e) The functional theory

This theory is also called as efficiency theory. According to this theory welfare activities are
undertaken to secure, preserve and develop the efficiency and productivity of workers. It is obvious
that if an employer undertakes welfare activities for his workers, they will tend to become more
efficient and will thereby increase productivity. Consequently, the workers, they will tend to become
more efficient and will thereby increase productivity. Consequently, the workers will get better
wages and incentives and the management will get higher profits. This is the functional aspect of
welfare having efficiency as its objects, which in turn increases productivity.

f) The policing theory

This theory is based on the assumption that the man is selfish and self centered and always try to
achieve his own end, even at the cost of welfare of others, particularly if he is placed in an
advantageous position, by reason of wealth or authority.

According to this view, the factory provides ample opportunities for owners to exploit workers. The
state has, therefore, to step in to prevent this kind of exploitation and coerce owners to offer
minimum standard of welfare facilities to their workers.

g) The Placating Theory

The basic assumptions behind this theory are workers are becoming conscious of their right and
privileges and they are welding themselves into more powerful, demanding and militant groups than
ever before. The workers demands can no longer be ignored. Therefore, it is necessary to appease
the workers. This could be done by taking up timely and periodical welfare activities. The welfare
activities are considered as pacifiers. This is also the best means of securing workers’ cooperation.

Conclusion:

The Functional Theory is also called the Efficiency Theory of labour welfare. It states that welfare
facilities are provided so as to make the workers more efficient. The workers will work efficiently if
they are treated kindly and are provided with clean and safe working conditions.
Q4) What are Fringe Benefits. Explain the features of Fringe Benefits with suitable examples?

Fringe Benefits – Introduction

Management is concerned with attracting and retaining employees whose performance meets
organisational requirements. While incentives are given to specific employees, fringe benefits are
available to all the employees depending upon their membership in the organisation. The term
“fringe benefits” refers to the extra benefits given to the employees in addition to wages or salary.

The benefits were known as ‘fringe’ benefits since they were relatively insignificant or fringe
components ‘of compensation. The fringe benefits have become important components of
compensation package.

Fringe benefits include pension, gratuity, health insurance, bonus, paid holidays, medical
reimbursement, vacations, sick leave, annual leave, maternity leave etc. Fringe benefits are indirect
compensations as they are usually extended as a condition of employment and are not directly
related to performance.

Fringe Benefits – Meaning and Definitions

Fringe benefits refer to those benefits and services that are extended by the employer to his/her
employees over and above their wages and salaries, such as housing, transportation, subsidized
meals, medical care, paid holidays, and the like.
As fringe benefits are provided over and above the regular wages and salaries and augment the
earnings of the employees, they are also known as supplementary compensation.

Nearly every organization provides these benefits to its employees and their importance continues
to grow. Although these benefits do cost a lot of expenditure to organizations, they, however,
provide social security and psychological support to the employees.

The main objectives of fringe benefits may be as follows:

1. To meet the needs of employees and safeguard them against certain hazards of life, particularly
the ones which an individual, especially of small means, cannot himself provide for
2. To attract and retain employees
3. To earn gratitude and loyalty of the employees
4. To remain competitive in the market with regard to the provisions of fringe benefits
5. To boost the image of the organisation
6. To seek meaningful cooperation of employees in production process
7. To infuse confidence, motivate and boost morale of the employees
8. To reduce rate of absenteeism and labour turnover
9. To reduce the influence of trade unions
10. To reduce statutory interference
11. To improve human and industrial relations
12. To promote employee welfare and provide qualitative work environment.

Main Features of Fringe Benefits

1. Fringe benefit is indirect compensation as they are not directly related to performance but
extended as the conditions of employment.
2. They are paid to the employees based on their membership in the organization.
3. They are helpful in raising the standard of living of employees.
4. Benefits and services are provided to the employees on the basis of genuine interest in the
protection and promotion of their well-being.
5. They are supplementary forms of compensation.
6. Fringe benefits must satisfy a real need of an employee. If benefit is not liked by him he will
resist to it.
7. Employees are educated to make use of fringe benefits.
8. They may be voluntary or statutory (provident fund is voluntary and transport is statutory
benefit).
9. Fringe benefits are supplementary to regular wages or salaries.
10. Fringe-benefits are paid to workers to stimulate their interest in the work and not for
specific job.
11. Fringe benefits are extended to all the employees based on their membership in the
organization.
12. Fringe benefits help to improve the standard of living of employees.
13. Fringe benefits involve labour cost for the employer and are not meant to improve efficiency
of employees.

General List of Fringe Benefits:

1. Legally Required Payments:

a. Old age, disability, health insurance (Social Security).

b. Workers compensation/retrenchment compensation.

c. Unemployment compensation.

2. Deferred Benefits:

a. Pension plans

b. Group life and health insurance

c. Child care leave, maternity leave, sick leave

d. Tuition aid benefits

e. Severance pay
3. Payment for Time not Worked:

a. Earned leave for holidays

b. Leave for vacation

Other Fringes:

a. Car subsidy given by company

b. Uniform/tool expenses given by company

c. Employee meal allowance

d. Discount on employee’s goods and services.

e. Achievement awards

f. Adoption assistance

g. Athletic facilities

h. De minimis benefits

Conclusion:

Fringe benefits should be provided to employees on the basis of a genuine interest in the protection
and promotion of their well-being. The management should not feel that these fringes are thrust
upon them. Nor should the management feel that they are providing the benefits as a matter of any
charity.

Q5) Duties and responsibilities of Labour welfare officer?

A Labour welfare officer is basically a counsellor, advisor and mediator with competent technical
knowledge, well versed in labour laws (statutory and non-statutory) and human values and able to
guide & advice for corrective decisions and actions against the problems the employees are facing.
His or her primary skills must be actively listening, responding and questioning.

A labour welfare officer should assist the management in framing labour welfare policies. He should
have the different departmental heads in an organization to meet their obligations under the various
acts, thus ensuring implementation of labour laws.

Duties of labour welfare officer:

I. Supervision
II. Advice
III. Liaison
IV. Counseling

The Labour welfare officer should act as a supervisor of:

 Safety, health and welfare programmes like housing, recreation, sanitation etc
 Working of joint committees.
 Grant of leave with wages.
 Redresses of workers’ grievances.
 Wage and salary administration

The Labour welfare officer should advice managers in the matters of:

 Formation of labour and welfare policies.

 Apprenticeship training programmes.
 Meeting statutory obligations to workers.
 Developing fringe benefits.
 Workers education and use of communication media

The Labour welfare officer should act as a counselor in problems relating to:

 Personal and family matters

 Adjustment to their work environment.
 Understanding their rights and privileges.

The Labour welfare officer should act as a liaison officer:

 To maintain good industrial relations.

 Interpret the company policies correctly.
 To settle the industrial dispute if any
 Understand the limitations under which the workers operate;
 Liaison with management so that they can appreciate the worker’s view point on various
matters connected with the plant and meet their obligations under the factories Act
 Suggest measures for the promotion of the general well-being of workers.

RESPONSIBILITIES OF LABOUR WELFARE OFFICERs

a. to study and understand the point of view of labour in order to help the factory management to
shape and formulate labour policies and to interpret these policies to the workers in language
they can understand

b. to advise on fulfilment by the management and the concerned departments of the factory of
their obligations, statutory or otherwise, concerning regulation of working hours, maternity
benefit, compensation for injuries and sickness and other welfare and social benefit measures ;

c. to advise and assist the management in the fulfilment of its obligations, statutory or otherwise
concerning prevention of personal injuries and maintaining a safe work environment, in such
factories where a Safety Officer is not required to be appointed as per rule

d. to encourage the formation of joint production committees, co-operative societies, and welfare
committees and to supervise their work

e. to encourage provision of amenities such as canteens, shelters for rest, creches, adequate
latrine facilities, water, sickness and benevolent scheme payments, pension and
superannuation funds, gratuity, payments, granting of loans and legal advice to workers

f. to advise the factory management on questions relating to training of new starters, apprentices,
workers on transfer and promotion, instructors and supervisors; supervision and control of
notice board and information bulletins; to further the education of workers and encourage their
attendance at technical institutes;

g. Welfare Officer shall not deal with any disciplinary case against a worker or appear before a
conciliation office or in a Court or Tribunal on behalf of the Factory management against any
worker or workers.

Conclusion:

In brief, the welfare officer has to concern himself with the implementations of labour laws and the
maintenance of proper working conditions, with matters relating to the worker’s well-being; with
industrial peace and harmonious labour relations. He has to plan to increase productivity and is
expected to act, while discharging his responsibilities, as an advisor, counselor, mediator and liaison
man between management and labour.