Self Made Notes

HRM 621

SOCIAL SECURITY AND LABOUR

WELFARE
Unit I
Labour Welfare : Concept and Agencies of Labour Welfare, Statutory and Non
Statutory Welfare Measures, Labour Welfare Officer's Role, Responsibility,
Functions and Duties, Introduction to Shops & Establishment Act, 1953

Unit II
Voluntary Labour Welfare Measures : The Role of Employers, The Role of
Trade Unions, The Role of Self Help Groups

Unit III
Social Security : Scope and Purpose, Evolution of Social Security Measures,
Comparison of Social Security in Organized and Unorganized Sectors,
Concerns and Issues in Social Security

Unit IV
Social Security Laws in India : Employee State Insurance Act, 1948,
Maternity Benefit Act, 1961, Provident Fund and Miscellaneous Provisions Act,
1952, Payment of Gratuity Act, 1972, Employees' Compensation Act,1923

Unit V
Recommendations of National Labour Commission : Structure and Role of
National Labour Commission, Labor Welfare Provisions in India, Statutory
Social Security Programmes

Unit VI
International Labour Organization : Structure and Function, Welfare Work,
Recommendations and Conventions, Contemporary issues related to social
security legislation

Text Books:
1. ASPECTS OF LABOR WELFARE AND SOCIAL SECURITY by SARMA,
A.M, HIMALAYA PUBLISHING HOUSE PVT. LTD
References:
1. LABOUR AND INDUSTRIAL LAWS by PADHI, P.K., PRENTICE HALL
2. INDUSTRIAL RELATION AND LABOUR LAWS by MONAPPA, A. ,
NAMBUDIRI, R., SELVARAJ,
P., MCGRAW HILL EDUCATION
 Unit 1.
Unit I
Labour Welfare : Concept and Agencies of Labour Welfare, Statutory and Non
Statutory Welfare Measures, Labour Welfare Officer's Role, Responsibility,
Functions and Duties, Introduction to Shops & Establishment Act, 1953
Q 1. Define Labour Welfare.
Ans 1. Labour welfare relates to taking care of the well-being of workers by
employers, trade unions, governmental and non-governmental institutions and
agencies. Welfare includes anything that is done for the comfort and
improvement of employees and is provided over and above the wages.
Q 2. What is the need for Labour Welfare ?
Ans 2. “Labour welfare is efforts to make life worth living for workmen.” The
need for providing such services and facilities arise from the social responsibility
of industries, a desire for upholding democratic values and a concern for
employees. Welfare includes anything that is done for the comfort and
improvement of employees and is provided over and above the wages.
Q 3. How does ILO defined Labour welfare ?
Ans. 3. According to Industrial Labour Organisation (ILO), “Labour welfare may
be understood and including such services facilities and amenities which may be
established in vicinity of undertaking to perform their work in healthy and
congenial environment and to avail of facilities which improve their health and
bring high morale.”
Q 4. What are the objectives of Labour welfare ?
Ans. 4. Labour welfare has the following objectives:
1. To provide better life and health to the workers,
2. To make the workers happy and satisfied,
3. To relieve workers from industrial fatigue and to improve intellectual,
cultural and material conditions of living of the workers.

Q 5. What are the basic features of labour welfare measures ?

Ans 5. The basic features of labour welfare measures are as follows:

1. Labour welfare includes various facilities, services and amenities provided

to workers for improving their health, efficiency, economic betterment and
social status.
2. Welfare measures are in addition to regular wages and other economic
benefits available to workers due to legal provisions and collective
bargaining
3. Labour welfare schemes are flexible and ever-changing. New welfare
measures are added to the existing ones from time to time.
4. Welfare measures may be introduced by the employers, government,
employees or by any social or charitable agency.
5. The purpose of labour welfare is to bring about the development of the
whole personality of the workers to make a better workforce.

Q 6. What are the important benefits of welfare measures ?

Ans 6. The very logic behind providing welfare schemes is to create efficient,
healthy, loyal and satisfied labour force for the organization. The purpose of
providing such facilities is to make their work life better and also to raise their
standard of living. The important benefits of welfare measures can be
summarized as follows:

1. They provide better physical and mental health to workers and thus
promote a healthy work environment
2. 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.
3. Employers get stable labour force by providing welfare facilities. Workers
take active interest in their jobs and work with a feeling of involvement and
participation.
4. Employee welfare measures increase the productivity of organization and
promote healthy industrial relations thereby maintaining industrial peace.
5. The social evils prevalent among the labours such as substance abuse, etc
are reduced to a greater extent by the welfare policies.
Q 7. What are statutory welfare benefits given to employees ?

Ans 7. Statutory welfare measures mainly include welfare facilities provided

within the precincts of an industrial establishment. They form part of the
employers‟ statutory obligations.

The statutory welfare benefits schemes include the following provisions:

1. Drinking Water: At all the working places safe hygienic drinking water
should be provided.
2. Facilities for sitting: In every organization, especially factories, suitable
seating arrangements are to be provided.
3. First aid appliances: First aid appliances are to be provided and should be
readily assessable so that in case of any minor accident initial medication
can be provided to the needed employee.
4. Latrines and Urinals: A sufficient number of latrines and urinals are to
be provided in the office and factory premises and are also to be maintained
in a neat and clean condition.
5. Canteen facilities: Cafeteria or canteens are to be provided by the
employer so as to provide hygienic and nutritious food to the employees.
6. Spittoons: In every work place, such as ware houses, store places, in the
dock area and office premises spittoons are to be provided in convenient
places and same are to be maintained in a hygienic condition.
7. Lighting: Proper and sufficient lights are to be provided for employees so
that they can work safely during the night shifts.
8. Washing places: Adequate washing places such as bathrooms, wash
basins with tap and tap on the stand pipe are provided in the port area in
the vicinity of the work places.
9. Changing rooms: Adequate changing rooms are to be provided for
workers to change their cloth in the factory area and office premises.
Adequate lockers are also provided to the workers to keep their clothes and
belongings.
10.Rest rooms: Adequate numbers of restrooms are provided to the workers
with provisions of water supply, wash ba
sins, toilets, bathrooms, etc.
11.Maternity & Adoption Leave – Employees can avail maternity or
adoption leaves. Paternity leave policies have also been introduced by
various companies.
12.Medi-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.
13.Sexual Harassment Policy: To protect an employee from harassments of
any kind, guidelines are provided for proper action and also for protecting
the aggrieved employee. For more information go through - Sexual
Harassment of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013
Q 8. What is Labour welfare ?
Ans 8. Labour Welfare refers to anything that is done for the comfort and
improvement of employees and is provided over and above the wages.
Q 9. Why is labour Welfare important in a company ?
Ans 9. Welfare helps in keeping the morale and motivation of the employees
high so as to retain the employees for longer duration.
Labour welfare:
1. Facilitate Employee wellbeing
2. Shows employer cares for employees
3. Sense of belonging
4. Employee Motivation
5. Good employee relation
6. Employee Retention
Q 10. What does Employee Welfare includes ?
Ans 10. Labour Welfare
• need not be in monetary terms only
• It may be in any kind/forms also.
Employee welfare includes:
1. monitoring of working conditions.
2. creation of industrial harmony through infrastructure for health.
3. insurance against disease, accident and unemployment for the workers and
their families.
Q 11. What are the OBJECTIVES of Labour Welfare ?
Ans 11. 1. better life and health to the workers
2. make the workers happy and satisfied
3. relieve workers from industrial fatigue
4. improve intellectual, cultural and material conditions of living of the workers.
Q 12. What are the features of Labour Welfare ?
Ans. 12. Features of labour welfare measures :
1. includes various facilities, services and amenities provided to workers for
improving their health, efficiency, economic betterment and social status.
2. Welfare measures are in addition to regular wages and other economic benefits
available to workers due to legal provisions and collective bargaining.
3. Labour welfare schemes are flexible and ever-changing. New welfare
measures are added to the existing ones from time to time.
4. Welfare measures may be introduced by the Employers (Voluntary)
Government (Statutory) Employees Social or charitable agency.
5. The purpose of providing such facilities is to make their work life better and
also to raise their standard of living.
Q 13. Who introduces welfare measures and why ?
Ans 13. Welfare measures may be introduced by the
1. Employers (Voluntary)
2. Government (Statutory)
3. Employees
4. Social or charitable agency.
The purpose of providing such facilities is to make their work life better and
also to raise their standard of living.
Q 14. What are the important benefits of welfare measures ?
Ans 14. Important Benefits of welfare measures:
To Employees:
1. Facilities like housing schemes, medical benefits, education and
recreation facilities for workers’ families help in raising their standards of
living.
2. Provides better physical and mental health to workers and thus promote a
healthy work environment·
3. This makes workers to pay more attention towards work and thus
increases their productivity.
To Employer:
• Stable labour force by providing welfare facilities.
• Workers take active interest in their jobs and work with a feeling of
involvement and participation.
To Organization:
1. Employee welfare measures increase the productivity of organization
promote healthy industrial relations Helps to maintain maintaining
industrial peace.
2. The social evils prevalent among the labours such as substance abuse, etc.
are reduced to a greater extent by the welfare policies.
Classification of welfare activities
Q 15. What are statutory benefits ? List the statutory benefits given to
employees.
Ans 15. Statutory Schemes: The statutory schemes are those schemes that are
compulsory to be provided by an organization as compliance to the laws
governing from time to time. It is the product of coercive power of government.
The statutory welfare schemes include the following provisions:
1. Drinking Water: At all the working places safe hygienic drinking water
should be provided.
2. Facilities for sitting: In every organization, especially factories, suitable
seating arrangements are to be provided.
3. First aid appliance: First aid appliances are to be provided and should be
readily assessable so that in case of any minor accident initial medication can be
provided to the needed employee.
4. Latrines and Urinals: A sufficient number of latrines and urinals are to be
provided in the office and factory premises and are also to be maintained in a
neat and clean condition.
5. Canteen facilities: Cafeteria or canteens are to be provided by the employer
so as to provide hygienic and nutritious food to the employees.
6. Spittoons: In every work place, such as ware houses, store places, in the dock
area and office premises spittoons are to be provided in convenient places and
same are to be maintained in a hygienic condition.
7. Lighting: Proper and sufficient lights are to be provided for employees so that
they can work safely during the night shifts. (eg TCS)
8. Washing places: Adequate washing places such as bathrooms, wash basins
with tap and tap on the stand pipe are provided in the port area in the vicinity of
the work places.
9. Changing rooms: Adequate changing rooms are to be provided for workers to
change their cloth in the factory area and office premises. Adequate lockers are
also provided to the workers to keep their clothes and belongings.
10. Rest rooms: Adequate numbers of restrooms are provided to the workers
with provisions of water supply, wash basins, toilets, bathrooms, etc.
Q 16. What are non statutory welfare benefits ?
Ans 16. NON STATUTORY WELFARE SCHEMES
These are provided ‘Voluntarily’ or by ‘Agreeing Mutually’ with the workers.
The non statutory schemes differ from organization to organization and from
industry to industry. Non statutory welfare schemes include the following
schemes:
1. Personal Health Care (Regular medical check-ups): Some of the companies
provide the facility for extensive health check-up.
2. 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.
3. Maternity & Adoption Leave – Employees can avail maternity or adoption
leaves. Paternity leave policies have also been introduced by various companies.
 4. 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. (Eg. SCL-Talk to ME)
5. Harassment Policy: To protect an employee from harassments of any kind,
guidelines are provided for proper action and also for protecting the aggrieved
employee. (E.g.: SCL- awareness posters)
6. Medi-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.
7. Employee Referral Scheme: In several companies employee referral scheme
is implemented to encourage employees to refer friends and relatives for
employment in the organization.
Q – 17. List the roles, responsibilities and functions of Labour welfare
Officer.
Ans 17. Role & Responsibility of Welfare Officer under Factory Act Rules

1. To encourage provision of amenities such as canteens, shelters for rest,

creches, adequate latrine facilities, drinking water, sickness and benevolent
scheme payments, pension and superannuation funds, gratuity payments,
granting of loans and legal advice to workers;
2. To help the factory management in regulating the grant of leave with wages and
explain to the workers the provisions relating to leave with wages and other
leave privileges and to guide the workers in the matter of submission of
application for grant of leave for regulating authorised absence;
3. To advise on provision of welfare facilities, such as housing facilities,
foodstuffs, social and recreational facilities, sanitation, advice on individual
personnel problems and education of children;
4. To bring to the notice of the factory management the grievances of workers,
individual as well as collective, with a view of securing their expeditious
redress and to act as a liaison officer between the management and labour;
5. To establish contacts and hold consultations with a view to maintaining
harmonious relations between the factory management and workers;
6. 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 a language they can understand;
7. To watch industrial relations with a view of using his influence in the event of
a dispute between the factory management and workers and to help to bring
about a settlement by persuasive effort;
8. To advise on fulfilment by the management and the concerned departments of
the factory of obligations, statutory or otherwise, concerning regulation of
working hours, maternity benefit, medical care, compensation for injuries and
sickness and other welfare and social benefit measures;
9. To promote relations between the concerned departments of the factory and
workers which will bring about productive efficiency as well as amelioration in
the working conditions and to help workers to adjust and adapt themselves to
these working environments;
10.To encourage the formation of works and joint production committees,
cooperative societies and welfare committee, and to supervise their work;
11.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 education of workers and to encourage their attendance at technical
institutes; and
12.To suggest measures which will serve to raise the standard of living of workers
and in general promote their well- being.
13.Welfare officers not to deal with disciplinary cases or appear on behalf of the
management against workers.- no welfare officer shall deal with any
disciplinary cases against workers or appear before a conciliation officer in a
court or tribunal on behalf of the factory management against a worker or
workers.

Q – 18. Explain and give a brief introduction to Shops & Establishment

Act, 1953.
Ans 18.
1. The Shops and Establishments Act,1953 was enacted to provide
statutory obligation and rights to employees and employers in the
unorganised sector of employment, i.e. shops and establishments.

2. It is applicable to all persons employed in an establishment with or

without wages, except the members of the employer's family.

3. It is a State legislation and each State has framed its own rules for the
Act.

4. The State Government can exempt, either permanently or for a

specified period, any establishments from all or any provisions of this
Act.
 5. The Act provides for compulsory registration of shop/ establishment
within thirty days of commencement of work and all communications
of closure of an establishment within 15 days from its closing.

6. It also lays down the hours of work per day and week as well as the
guidelines for spread-over, rest interval, opening and closing hours,
closed days, national and religious holidays, overtime work, etc.
Q 19. What are the objectives of Shops & Establishment Act, 1953 ?
Ans 19. The Objective of of Shops & Establishment Act, 1953 to provide
statutory obligation and rights to employees and employers in the unorganized
sector of employment, i.e., shops and establishments.
Q 20. What is the scope and coverage of the Shops and Establishments Act,
1953?
Ans 20. The scope and coverage of the Shop and Establishment Act:
1. A state legislation; each state has framed its own rules for the Act.
2. Applicable to all persons employed in an establishment with or without
wages, except the members of the employer's family.
3. State government can exempt, either permanently or for a specified period,
any establishments from all or any provisions of this Act.
Q 21. What are the main provisions of the Shops and Establishments Act,
1953?
Ans.
1. Compulsory registration of shop/establishment within thirty days of
commencement of work.
2. Communications of closure of the establishment within 15 days from the
closing of the establishment.
3. Lays down the hours of work per day and week.
4. Lays down guidelines for spread-over, rest interval, opening and closing
hours, closed days, national and religious holidays, overtime work.
5. Rules for employment of children, young persons and women
6. Rules for annual leave, maternity leave, sickness and casual leave, etc.
7. Rules for employment and termination of service.
8. Maintenance of registers and records and display of notices.
9. Obligations of employers.
10.Obligations of employees.
Q 22. When to consult and refer the Shops and Establishments Act, 1953?
Ans. 22. When to Consult And Refer
• At the time of start of an enterprise.
• When framing personnel policies and rules.

Unit II
Voluntary Labour Welfare Measures : The
Role of Employers, The Role of Trade Unions,
The Role
of Self Help Groups

Q 1. What are Voluntary Labour welfare Measures ?

Ans 1. Statutorily number of provisions have been made for Labour Welfare,
certain employers who have promised a wide variety of welfare amenities and
services, except statutory provisions to their employee. Such types of welfare
measures are called voluntary welfare measures.
Q 2.