EMPLOYEE WELFARE

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WHAT IS EMPLOYEE
WELFARE?
Referred to as betterment work for employees.
Relates to taking care of the well being of workers by
employers, trade unions, governmental and non-
governmental organizations.

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According to the Royal
Commission on Labor

Labor welfare is a term which must necessarily be elastic,

bearing a somewhat different interpretation in one country
from another, according to different social customs, the
degree of industrialization and educational level of
workers.

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Merits
Motivates employees
Employee Retention
Minimized social evils
Better Job satisfaction
Cuts down labor
turnover

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Demerits
Huge investment
Employees being
dissatisfied

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Inside the work place-Intra mural facilities
Facilities within the factories like medical,
compensation, drinking water
Outside the work place-Extra mural facilities
Facility provided outside the factories like
accommodation, recreational facilities,educational
facilities

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Conditions of environment
•Safety and cleanliness of the work environment
•Good house keeping-compound walls and lawns
•Convenience and comfort-illumination, seating
arrangements
•Safety measures-machine fencing,goggles, first aid, helmets
•Visible posters and warnings

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Convenience
•Provisions for wash basins, bathrooms and waste disposal
•Provision for drinking water
•Canteen service
•Recreation rooms,rest rooms and libraries.

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Health services
•Health center
•Dispensary
•First aid
•Health education
•Counseling
•Ambulance service

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Women and child welfare
•Maternity aid
•Child care
•Separate facilities for women
•Women’s recreation
•Family planning services

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Others
•Employment follow up-comfort and awareness
•Economic services-loans, insurance
•Labour management services-counseling, safety
committee
•Employee education-library, AV unit,literary classes,news
bulletin etc.

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•Comfortable and hygienic residences
•Sanitation and water disposal
•Proper roads and lighting facility
•Plentiful markets
•Security
•Health and medical services

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Welfare activities by the government
Factories Act of 1948
•Washing facilities
•Rest rooms
•First aid boxes
•Canteen and shelters
•Crèche for more than 30 women
•Welfare officers for more than 500 workers

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Mines Act of 1952
•Crèches for more than 50 women
•Canteen for more than 150 workers
•Shelter for more than 250 workers
•Shower baths and sanitary latrines
•Welfare officer for more than 500 workers

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Plantation Act of 1951
•Recreation facility for workers and their children
•Educational facility
•Housing facility for all workers
•Umbrellas, blankets, raincoats and other amenities

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Contract Labour Act 1970
•A canteen for more than 100 employees
•Rest rooms and alternative accommodation
•Sufficient supply of drinking water washing facilities etc
•First aid boxes

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Labour welfare officer- schedule 49 of Factories Act
•Present in a factory of more than 500 workers
•Supervision of safety and welfare programmers
•Counseling of workers and adjustment in work environment
•Formulate welfare policies
•Liasoning with officials and resolving disputes

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www.a2zmba.com
POLICING THEORY
Labour exploitation
RELIGION THEORY
Investment aspect
Atonement aspect
PHILANTHROPIC THEORY
Affection for mankind
Good working conditions
PATERNALISTIC THEORY
Also known as Trusteeship theory

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PLACATING THEORY
Welfare activities will please workers and will make
them work well.
PUBLIC RELATIONS THEORY
Welfare activities to create good impression on the
minds of the public
FUNCTIONAL THEORY
Welfare activities provided to make workers more
efficient
SOCIAL THEORY
Obligation on the part of the organization to provide for
the employees welfare

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1.Welfare Policy
 Objectives

 Approach

 Range
i) Type of facilities
ii) Coverage of employees

 Timeliness
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2.Organisation For Welfare
 The Factories Act ,1948 mandates that every industrial
establishment must appoint a welfare officer if the
number of employees is 500 or more.

 It is argued that the prime responsibility for welfare

should rest with the line manager or the HR manager.

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3.Assesment Of Effectiveness
 Effectiveness of welfare must be assessed periodically.

 Two methods of assessment :

i) Trend Analysis
ii) Opinion Survey

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Welfare Facilities At ITI
(A) CARE
i) Medical Facilities
 For the employees covered under ESI scheme.
 EFT scheme
 Medical Reimbursement
ii) Township Administration
iii) Welfare Funds

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Welfare Facilities At ITI
iv) Educational Scheme

v) Welfare Association & Clubs

vi) Other Welfare Measures

 Non-Officers Canteen
 Officers Canteen
 Transport
 Uniform
 Safety
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Welfare Facilities At ITI
(B) TERMINAL BENEFITS

vii) Employees’ Provident Fund

viii) Gratuity Scheme

ix) Group Insurance Scheme

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Latest Trends
I – Wega
Health Scribe
Subex Systems
Infosys
Hewlett – Packard

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Conclusion
If a tailor makes mistake – it becomes a fashion
If a scientist makes a mistake – it becomes an invention
If an HR manager deploys a retention strategy – it
becomes a welfare measure

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