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, crèches, 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 social service
organizations like: - Seva Sadan society.
Welfare
 * Intramural: - These are provided within the organization like:
-
1. Canteen,
2. Rest rooms,
3. Crèches,
4. Uniform
5. Health services
6. House Keeping 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. Markets, co-operatives
7. Health and medical services like dispensary,
emergency ward, etc.
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. Benefits 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
Welfare
 Medical care
- Sickness benefit in cash
- Old age pension or retirement benefit
- Maternity benefit
- Accident benefit
- Survivor’s benefit
Role of Management in Employee
Welfare
 Organizations provide welfare facilities to their employees to their level of
motivation. 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 otprovide
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.