Literature Review

The term "welfare" indicates a state of wellbeing and the moral rectitude of a person. It is a
desired state of being that includes a person's mental, physical, moral, and emotional
components. Together, these four components make up the welfare system's underlying
framework.

The term "employee welfare" includes any measure taken for the intellectual or social well-
being, comfort, or improvement of the workers that goes beyond the payment of salary and
is not required by the sector in which they work. It includes things like keeping an eye on
working conditions, fostering organisational harmony through infrastructure for health,
general insurance, retirement benefits, housing options, and educational advantages for
both employees and their children, among other things.(Patro, C. S. (2017)

In a Resolution in 1947, the ILO defined labour welfare as “such services, facilities and
amenities as adequate canteens, rest and recreation facilities, arrangements for travel to
and from work, and for the accommodation of workers employed at a distance from their
houses and such other services, amenities and facilities as contribute to improve the
conditions under which workers are employed”.

Labor welfare includes the setting of minimum desirable standards as well as the supply of
services such as health, nutrition, clothes, housing, medical aid, education, insurance, job
security, leisure, etc. With the use of these services, a worker and his family can achieve a
good work life, family life and social life.

It is becoming more widely acknowledged that caring about the welfare of employees and
taking steps to improve their general health can have a number of benefits for the company.
Particularly, it has been argued that employee assistance programmes (EAPs) can lower the
cost of health insurance and sick pay, slash operating costs, reduce absenteeism and
turnover, and create equivalent decreases in recruitment and training costs. Additionally,
there are less obvious advantages that come from the organization's improved reputation
among current and potential consumers as well as staff.

Several businesses are addressing the difficulties of finding and keeping talent in today's
competitive labour market by raising workplace standards and investing in employee perks.
According to earlier research, these employee-friendly strategies improve the operational,
financial, and stock price performances of businesses. So, it's critical to comprehend how a
company's dedication to employee welfare impacts its financial policies. Very little is known
about the effects of employee welfare practises on financial policies, and in particular cash
holdings, with the exception of a few studies that look at the potential impact of employee
treatment on leverage.(Ghaly, M., Dang, V. A., & Stathopoulos, K. (2015).)
References

1. Patro, C. S. (2017). Employee welfare measures in public and private sectors: A comparative
analysis. In Public health and welfare: Concepts, methodologies, tools, and applications (pp.
1026-1042). IGI Global.
2. Davis, A., & Gibson, L. (1994). Designing employee welfare provision. Personnel
review, 23(7), 33-45.
3. Ghaly, M., Dang, V. A., & Stathopoulos, K. (2015). Cash holdings and employee
welfare. Journal of Corporate Finance, 33, 53-70.