February 19, 2024

Legal Aspects of Employee Welfare and Benefits

The article has been written by Mr. Rishi Kumar Yadav, is a law graduate from University college of Law (MLSU), Udaipur, Rajasthan.

Abstract:

The factories act 1948, is to ensure adequate amount of safety measure and to promote the health and safety and welfare of the workers employed in factories. The act also makes provisions regarding employment of women and young persons encluding (children & adolescents), annual leave with wages etc.

The act extended to whole of India including Jammu & Kashmir and covers all manufacturing process and establishments falling within the definations of factory as defined u/s2(m) of the act. Unless otherwise provided it is also applicable to factories belonging to Central/State government (Section 116)

 

Introduction:

Industrial progress of a country depends on its committed labour force. In this regard the importance of labour welfare was recognized as early as 1931 when the Royal commission on Labour stated that the benefits which undergo this nomenclature are of great importance to the worker who is unable to secure by themselves. The schemes of labour welfare may be regarded as a wise investment which usually brings a profitable return in the form of greater efficiency.

 

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.

 

Objective:

(i) To enhance the level of morale of employees.

(ii) To create a loyal, contented workforce in organization.

(iii) To develop a better image of the company in the minds of the employees.

(iv) To enable the workers to live comfortably and happily.

(v) To develop efficiency of the workers.

(vi) To reduce influence of trade unions over the workers.

(vii) To expose philanthropic and benevolent activities of the company.

(viii) To make the workers know that the company takes care of them.

(ix) To develop positive attitude towards job, company and management.

(x) To reduce tax burden.

(xi) To develop a feeling of satisfaction of employees with the company.

(xii) To develop a sense of belonging to the company.

(xiii) To retain skilled and talented workers.

(xiv) To develop better human relation.

(xv) To prevent social evils like drinking, gambling through improvement of working conditions, cultural activities and social conditions.

 

Employee Welfare: 

  • Statuatory
  • Voluntary

 

Statuatory:  

The government has passed a number of legislations in order to set minimum standards of safety and welfare for the employees at their workplace. Provisions have been made for the welfare facilities such as washing, storing, first-aid appliances, hours of work, sanitation, etc.

 

Voluntary: 

The employers voluntarily have provided welfare amenities to the employees besides the statutory facilities. They are more concerned with the welfare of their employees. Organizations such as Godrej and L & T provide adequate transport and similar other facilities to their employees. Facilities for recreation, medical treatment, free meals or subsidized meals, schooling facilities for children, and sports and games are provided by many organizations.

Organizations have given opportunities to work with flexible working schedules. It helps to meet business commitments while at the same time supporting one’s personal life needs. Organizations also provide medi-claim insurance coverage to employees for expenses relating to hospitalization due to illness, disease, and injury. Harassment policies are also made to protect harassment of any kind to employees.

The voluntary welfare facilities may also classified into those provided within and outside the factory premises.

(i) Welfare and amenities within the factory premises.

(ii) Welfare and facilities outside the factory premises.

Welfare and amenities within the factory premises include – (i) provision for latrine and urinals, (ii) washing and bathing, (iii) creches, (iv) rest shelters and canteens, (v) arrangement of drinking water, (vi) arrangement for prevention of fatigue, (vii) administrative arrangement within the plant to look after welfare, (viii) uniforms and protective clothing, and (ix) shift allowance.

Welfare and amenities outside the factory premises include – (i) maternity benefit, (ii) social insurance, (iii) benevolent fund, (iv) medical facilities, (v) education facilities, (vi) housing facilities, (vii) recreational facilities, (viii) holiday/leave and travel facilities, (ix) workers’ cooperatives, (x) other programme for the welfare of women, youth, and children, and (xi) transport to and from the place of work.

 

Approaches to Employee Welfare:

  • The Policing Theory of Labour Welfare
  • The religion theory of laobour welfare
  • The Philanthropic  Theory of Labour Welfare
  • The Paternalistic Theory of Labour Welfare
  • The Placating theory of Labour Welfare
  • The Public relations theory of Labour Welfare
  • The functional theory of Labour Welfare
  • The Social Theory of Labour Welfare

 

Benefits of Welfare Schemes:

  • They provide better physical and mental health to workers and thus promote a healthy work environment.
  • Facilities like housing schemes, medical benefits, and education and recreation facilities for workers’ families help in raising their standards of living. This makes workers to pay more attention towards work and thus increases their productivity.
  • Employers get stable labor force by providing welfare facilities. Workers take active interest in their jobs and work with a feeling of involvement and participation.
  • Employee welfare measures increase the productivity of organization and promote healthy industrial relations thereby maintaining industrial peace.
  • The social evils common among the labors such as abusing, teasing, etc are reduced to a greater extent by the welfare policies.

 

Conclusion:

Employee welfare means “the efforts to make life worth living for workmen.” .The labour/employee welfare work aims at providing such service facilities and amenities as would enable the workers employed in the industries/factories to perform their work in a healthy and pleasant surroundings favorable to good health and high morale. Employee welfare measures increase the productivity of organization and promote healthy industrial relations thereby maintaining industrial peace.

 

Labour welfare schemes may be statutory, voluntary or mutual.

 

It is statutory when such activities have to be undertaken in lieu of the legislation given by the government like drinking water facility, first aid, electricity etc.

 

It is voluntary when the activities are undertaken from their own side by the employers, for example providing flexible timing to the employees, providing them with regular health checkup camp etc. It is mutual when all parties join hands to bring about the social and economic upliftment of the workers. Welfare services can be intramural or extramural. Intramural when provided inside the organisation like canteens, restrooms, providing uniforms etc. They are extramural when provided outside the organisation like housing, education, loans etc.

References:

 

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