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 d social service
organizations like: - Seva Sadan society, Y.M.C.A., etc.
Types Of Welfare
Services
 * Intramural: - These are provided within the organization
like:
 1. Canteen,
2. Rest rooms,
3. Crèches,
4. Uniform 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. Workers cooperative stores,
7. Vocational guidance etc.
 LABOUR WELFARE IS ALSO DIVIDED AS:
 > 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.Benifits 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
 SOCIAL SECURITY IN INDIA
 - Medical care
 - Sickness benefit in cash
 - Old age pension or retirement benefit
 - Invalidity pension
 - Maternity benefit
 - Accident benefit
 - Survivor’s benefit

 Art 41 0f Indian constitution says that “ the state shall within the
limits of its economic capacity & develeopment, make effective
provision for security , the right to work, to education & to public
assistance in cases of unemployment, oldage, sickness &
disablement & in other cases of undeserved want”
PHILOSOPHY OF LABOUR
WELFARE ACTIVITIES
The philosophy of labour welfare activities is
based on the theory that success of industrial
development depends upon harmonious
relations and co-operation between labour and
management (employer ). The labour has a
fund of knowledge and experience at his jobs. If
rightly directed and fully used, it would make a
good contribution to the prosperity of the
organization this can be achieved only through
the satisfaction of the labour.
THEORIES OF LABOUR
WELFARE
The Police Theory: This is based on the contention
that a minimum standard of welfare is necessary for
labourers. Here the assumption is that without
policing, that is, without compulsion, employers do
not provide even the minimum facilities for workers
The Religious Theory: This is based on the concept
that man is essentially "a religious animal."
The Philanthropic Theory: This theory is based on
man's love for mankind. Philanthropy means "Loving
mankind."
The Trusteeship
Theory
This is also called the Paternalistic Theory of
Labour Welfare. According to this the industrialist
or employer holds the total industrial estate,
properties, and profits accruing from them in a
trust.
The Placating Theory:
According to this theory, timely and periodical
acts of labour welfare can appease the workers.
They are some kind of pacifiers which come with a
friendly gesture
The Public Relation Theory: This theory provides the
basis for an atmosphere of goodwill between labour and
management, and also between management and the
public, labour welfare programmes under this theory,
work as a sort of an advertisement and help an
organization to project its good image and build up and
promote good and healthy public relations.
The Functional TheoryThis is also called the Efficiency
Theory. Here, welfare work is used as a means to secure,
preserve and develop the efficiency and productivity of
labour, It is obvious that if an employer takes good care of
his workers, they will tend to become more efficient and
will thereby step up production.
SUCCESSFUL
IMPLEMENTATION OF
WELFARE ACTIVITIES
Adequacy of Wages: Labour welfare measures
cannot be a substitute for wages.A combination of
social welfare, emotional welfare and economic welfare
together would achieve good results.
Social Liability of Industry: Industry, according to
this principle, has an obligation or duty towards its
employees to look after their welfare
Impact on Efficiency: This plays an important role in
welfare services, and is based on the relationship
between welfare and efficiency, though it is difficult to
measure this relationship.
Increase in Personality: The development of
the human personality is given here as the goal
of industrial welfare which, according to this
principle, should counteract the baneful effects
of the industrial system
Totality of Welfare: This emphasizes that the
concept of labour welfare must spread
throughout the hierarchy of an organization.
Employees at all levels must accept this total
concept of labour welfare programme will never
really get off the ground.
Co-ordination or Integration: This plays an important
role in the success of welfare services. From this angle, a
co-ordinated approach will promote a healthy development
of the worker in his work, home and community. This is
essential for the sake of harmony and continuity in labour
welfare services.
Democratic Values: The co-operation of the worker is the
basis of this principle. Consultation with, and the
agreement of workers in, the formulation and
implementation of labour welfare services are very
necessary for their success.
Responsibility: This recognizes the fact that
both employers and workers are responsible for
labour welfare. Trade unions, too, are involved
in these programmes in healthy manner, for
basically labour welfare belongs to the domain
of trade union activity
Accountability: This may also be called the
Principle of Evaluation. Here, one responsible
person gives an assessment or evaluation of
existing welfare services on a periodical basis to
a higher authority
Timely: The timeliness of any service helps in
its success. To identify the labour problem
and to discover what kind of help is necessary
to solve it and when to provide this help are
all very necessary in planning labour welfare
programmes.
 ROLE OF MANAGEMENT IN EMPLOYEE WELFARE
 Organizations provide welfare facilities to their employees to keep
their motivation levels high. 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 to
provide 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
 STATUTORY WELFARE SCHEMES

The statutory welfare schemes include the following provisions:

Drinking Water
 Facilities for sitting
 First aid appliances
 Latrines and Urinals
 Canteen facilities
 Spittoons
 Lighting
 NON STATUTORY SCHEMES
Personal Health Care (Regular medical check-ups): Some of the
companies provide the facility for extensive health check-up
 Flexi-time: The main objective of the flextime policy is to provide
opportunity to employees to work with flexible working schedules
 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.
 Harassment Policy: To protect an employee from harassments of
any kind, guidelines are provided for proper action and also for
protecting the aggrieved employee.

 Maternity & Adoption Leave – Employees can avail maternity or

adoption leaves. Paternity leave policies have also been introduced by
various companies.

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.

Employee Referral Scheme: In several companies employee
referral scheme is implemented to encourage employees to refer
friends and relatives for employment in the organization.

 ROLE OF TRADE UNIONS IN EMPLOYEE WELFARE
 1.Service role

-Trade unions attempt to develop services which are valuable to their members as
individuals, outside of the scope of collective bargaining.
-In many instances, trade unions negotiate pensions for workers.
-Trade unions have been able to offer professional, advisory and management
services to assist in establishing businesses for the workers, and in some cases, trade
unions have actually become shareholders in the business.
-Trade unions also supply legal and medical services for their members.
 2. Enhancement role
Trade unions provide the opportunity for workers to develop pride in themselves, to
reach positions of leadership and to excel, where without this vehicle of mobility.
 3. Welfare role
Some trade unions have actively engaged in providing welfare services for members and
even for the wider community. Eg- the employment of those who have disabilities, the
provision of family services including baby creches, as well as play and recreational
centres in depressed areas.
 IMPACT OF WELFARE ON LABOUR PRODUCTIVITY
 The welfare measures aim at integrating the socio-psychological
needs of employees, the unique requirements of a particular
technology, the structure and processes of the organization and the
existing socio-cultural environment.
 It creates a culture of work commitment in organizations and
society which ensure higher productivity and greater job
satisfaction to the employees.
 Due to the welfare measures, the employees feel that the
management is interested in taking care of the employees that
result in the sincerity, commitment and loyalty of the employees
towards the organization.
 The employees work with full enthusiasm and energetic behavior
which results in the increase in production and ultimately the
increased profit.
 SOCIAL SECURITY
 Social security primarily refers to a social insurance program
providing social protection, or protection against socially
recognized conditions, including poverty, old age, disability,
unemployment and others. Social security may refer to:
 social insurance, where people receive benefits or services
in recognition of contributions to an insurance scheme. These
services typically include provision for retirement pensions,
disability insurance, survivor benefits and unemployment
insurance.
 income maintenance—mainly the distribution of cash in the
event of interruption of employment, including retirement,
disability and unemployment
ILO
 ILO was setup in 1919 as a part of League of Nations for the
promotion of universal peace through social justice.
 Important areas of ILO activities & field operations
 - Manpower orgn & vocational training
 - Migrant workers- need to promote equality of migrant workers in
all social & labour matters.
 -Women workers- protection
- Child workers- against exploitation
 - Social Security
 -Conditions of work
 -Health , safety & welfare
 ILO’S WELFARE WORK
 ILO has suggested welfare funds on a collective basis to finance
activities in small undertakings.
 It has adopted a number of convections & recommendations
regarding industrial accidents & occupational health.
 New dimension to welfare activities has been provided by ILO’s
contribution to family welfare & population education prog among
industrial workers in organised sector in India
 It has rendered exemplary service to all 3 elements composing it –
govt, employees & workers.
 It has greatly influenced labour legislation, labour welfare , trade
unionism & Industrial Relations in India.
 WORKMEN’S COMPENSATION ACT
 Object of the Act
 To impose an obligation upon employers to pay compensation to
workers for accidents arising out of & in course of employment.
The scheme of the Act is not to compensate the workman in lieu of
wages, but to pay compensation for the injury caused.
 Applicability
 The act extends to whole of India and applies to any person who is
employed, otherwise than in clerical capacity, in railways,
factories, mines, plantataions, mechanically propelled vehicles,
loading and unloading work on a ship, construction, maintenance
and repairs of roads and bridges, electricity generatin, cinemas,
etc…
 In order to be a “work man” within the meaning of Sec 2(1)(n) of
the act, firstly a person should be employed, secondly his
employment should not be of a casual nature, thirdly, he should be
employed for the purposes of the employer’s trade or business,
and lastly the capacity in which he works should not be one set out
in Sch II of the Act.
 Payment of Compensation
 The compensation has to be paid by employer to a workman for
any personal injury caused by an accident arising out of and in the
cause of employment.(sec3)
 In Sch 1 to the Act, the percentage loss of earning capacity or
disablement caused by different types of injuries has been listed.
 .However the employer will not be liable for pay compensation for
any kind of disablement ( except death) which does not continue
for more than 3 days , if the injury is caused when the workman
was under the influence of drink, or drugs or willfully disobeyed a
clear order or violated a rule expressly framed for the purpose of
security of workmen or willfully removed or disregarded a safety
device.
 A workman is not entitled for compensation, if he does not present
himself for medical examination when required or if he fails to take
proper medical treatment which aggravates injury or device.
 Incase it is not fatal, an employment injury may cause any injury
resulting in (1) permanent total disablement.(2) permanent partial
disablement 93) temporary disablement.
 The rate of compensation in case of death is an amount equal to
50% of monthly wages of the deceased workman multiplied by the
relevant factor or Rs 80,000 whichever is more.
 While permanent total disablement results from the injury, the
compensation will be an amount equal to 60 % of monthly wages
of the injured workman multiplied by the relevant factor or Rs
90,000 whichever is more.
 Where the monthly wages of a workman exceed Rs 4000, his
monthly wages will be deemed to be Rs 4000 only.
 The ceiling of maximum amount of compensation is Rs 4.56 lakh in
the case of death & Rs 5.48 lakh for permanent total disablement.
 Where partial disablement results from the injury, as specified by partII of
 Sch I , such percentage of compensation which would have been payable in the
case of permanent total disablement as is specified therein as being the percentage
loss of earning capacity caused by that injury.
 The percentage loss of earning cpacity depends on the loss of limbs and varies from
1 % to 90%. In case of an injury not specified in Sch I, such percentage of
compensation payable in the case of permanent total disablement as proportionate
to the loss of earning capacity permanently caused by the injury.
 When more injuries than one are caused by the same accident, the amount of
compensation payable under this head shall be aggregated but not so in any case
as to exceed the mount which would have been payable if permanent total
disablement had resulted from injuries.
 In case of temporary disablement , a half-monthly payment of the sum equivalent
to 25% of monthly wages of the workman has to be paid
 In cases, where the disablement is 28 days or more, compensation is payable from
the date of disablement.
 In other cases , the same is payable after the expiry of a waiting period of 3 days.
 There after, the compensation will be payable half-monthly during the
disablement or during a period of 5 yrs which ever period is shorter.
 There is also a provision for commutation of half-monthly payments to a lump
sum amount by agreement between the parties or by an application by either
party to the commissioner if the payment continue for not less than 6 months.
 Deduction can be made from any lump sum or half-monthly payments to which
the workman is entitled the amount of any payment or allowance which the
workman has received from the employer by way of compensation during the
period of disablement prior to the receipt of such lump sum or of the first half
monthly payment, as the case may be.
 It is provided that all cases of fatal accidents should be brought to the notice of
the commissioner for workmen’s compensation and incase the employer admits
the liability , the amount of compensation payable will be deposited with him.
 Where the employer disclaims the liability for compensation to the extent
claimed, he has to make provisional payment based on the extent of liability
which he accepts & such payments must be deposited with the commissioner or
to be paid to the workman as the case may be.
 In such cases, the commissioner may, after such enquiry as he thinks fit,
inform the dependants that it is open to them to prefer a claim & may give
such other information as he thinks fit.
 Advances by the employer’s against compensation are permitted to the
extent of an amount equal to 3 months wages.
 Commissioner is also empowered to deduct an amount not exceeding Rs
100 from the amount of compensation in order to identify the person who
incurred funeral expenses.
 Employer is also required to file annual return giving details of the
compensation paid, number of injuries & other particulars.
 Amount deposited with the commissioner for workmen’s compensation is
payable to the dependents of the workmen.
 For purposes of the act dependants are grouped as 1) those who are
considered as dependants without any proof 2) those who must prove that
they are dependants.
 The first group includes a widow, minor legitimate son, an unmarried
legitimate daughter or a widowed mother.
 Following are included in the second group if they were wholly or partially
dependant on the earnings of the worker at the time of his/her death.
 A widower, a parent other than a widowed mother, a minor
illegitimate on, an unmarried illegitimate daughter etc…..
 If the employer is in default in paying the compensation within one
month from the date it fell due, the commissioner may direct for
recovery of not only the amount of arrears but also a simple
interest @ 6% per annum of the amount due.
 If the workman gets any occupational disease peculiar to that
employment , that would be deemed to be an injury by accident
arising out of & in the cause of his employment for purposes of this
act.
 In the case of occupational diseases, the compensation will be
payable only if the workman has been in the service of the
employer for more than 6 months
 ESI ACT -1948
 Object of the act:
 To provide for certain benefits to employees in case of sickness,
maternity and injury during employment and to make provision
for certain other matters in relation thereto
 Applicability of the Act:
 All factories
 Shops employing 20 or more persons.
 Such other Govt. specified establishments.
 Act does not apply to:
 Mines
 Railway running sheds
 Govt. factories or establishments and Indian naval, military, or
air force
 Other Govt. notified exempted establishments
 ACT AUTHORISATION
 1.  To Promote and measure for health and welfare of INSURED
EMPLOYEES (IE)
 2.  Intervene for the rehabilitation and re-employment for disabled /
injured
 3.   To appoint inspectors for purposed of the act
 4.  To determine the amount of contribution and relevant verification
 Standing committee empowered to-
 1.  Shall administer the affair of the corporation
 2.  Shall submit the consideration and decision of the corporations
 3.  Have discretion on other issues of corporation

 Medical Benefit Council

 1.  Advise to administration on Medical Benefit, purpose of grants and
related matter
 2.  Have power and duties of  INVESTIGATION on Empanelled Medical
practitioner, its treatment and attendance
 3.  Perform other duties
 Inspectors- Duties- Powers
 Duties  -
 1.  Inquiring into the correctness in any return of contribution
 2. Ascertaining Provision of the Act has been complied
 3. Other authorized / specified duties by the corporation.
 Powers -
 1. To collect require and relevant information of employer /
contractor or both
 2. To enter org / contractor premises at reasonable time and
examined relevant account books and relevant documents,
payment of wages etc.
 3. To examine employer, contractor, his agent  / servant or IE in
factory / office
 4.  To  make copies of extracts from any registrar, account
books and other books of maintenance of org.
 Employer/ Employee’s Contribution
 It is the principle employer’s responsibility to deposit his own as well as
employee’s contribution in respect of all employees including the
contract labour, into the E.S.I. Account. Non-availability of funds cannot
be a ground for non-payment of contributions under the act. There is no
provision to waive the contribution, damages and interest
 The employer is required to contribute at the rate of 4.75% of the wages
paid/ payable in respect of every wage period. The employees are also
required to contribute at the rate of 1.75% of their wages except when
the “average daily wages in a wage period” are equal to or less than
Rs.40. Benefits available to insured employee
 The purpose of the Employee State Insurance Act is to provide benefits
as detailed in the Act particularly in section 46, to the insured persons or
their dependants.
 Sickness benefit
 Maternity benefit
 Disablement benefit
 Dependents benefit
 Medical benefit & Funeral expenses
 Sickness benefit -Every insured employee is entitled to the cash benefit for the
period of sickness certified by a duly appointed medical practitioner if the
contributions in respect of him were payable for not less than 78 days in the
corresponding contribution period.
 Cash benefit takes the form of periodical payment made to an insured person
which is payable for maximum numbers of 91 days in any two consecutive benefit
periods. The benefit is not paid for the first two days of sickness which is treated
as the waiting period.
 Insured persons suffering from long term diseases like T.B., leprosy, mental, heart
etc. and who have been continuous employment for two years are entitled to get
sickness benefit period up to 309 days.
 Maternity benefit -A periodical cash benefit is payable to an insured woman
employee, in cash of confinement, miscarriage, medical termination of pregnancy,
premature birth of a child or sickness arising from pregnancy etc. If the
contributions in respect of her were payable for at least 70days in the two
immediately preceding contribution periods
 The benefit is payable of twice the standard benefit rate or Rs.20, whichever is
higher for all days on which she does not work during the prescribed period
 Disablement benefit -
 It is payable to an employee who is injured in the course of his
employment and is permanently or temporarily disabled or
contacts any occupational disease.
 A person who sustains temporary disablement for not less than
3days(excluding the day of accident) shall be entitled to
periodical payment as may be prescribed by the central govt.
 The benefit of temporary disablement is, however, not payable
for any day on which the employee works, remains on lease,
holiday or strike in respect of which he receives wages.
 Dependents benefit
 If any employee dies during any period for which he is entitled
to a cash benefit, the amount of such benefit shall be payable
up to & including the day of his death.
 The amount of benefit shall be paid to the nominee or, where
there is no nomination, to the heir or legal representative of the
deceased employee.
 Dependents benefit
 If any employee dies during any period for which he is entitled to a
cash benefit, the amount of such benefit shall be payable up to &
including the day of his death. The amount of benefit shall be paid to
the nominee or, where there is no nomination, to the heir or legal
representative of the deceased employee.
 Funeral Expenses
 If an insured employee dies, the eldest serving member of his family
is entitled to reimbursement of such expenditure subject to
maximum of Rs.2500 (W.E.F. December,2000)
 The claim for the funeral expenses should be submitted with
prescribed document and form within three months of the death of
the insured employee.
 Adjudication of dispute & claims
 Employees Insurance Court
 Institutions of proceedings, etc.
 Powers of employees’ Insurance Court
 Reference to High Court
 Appeal >Stay of payment during pending of appeal
 Offences and penalties
 Punishment for false statement :- In this case any false
statement or false representation, shall be punishable with
imprisonment up to Rs.2000 or with both
 Punishment for failure to pay contributions :- if any person
fails to pay any contribution which under to this act he is liable to
pay, he shall be punishable with imprisonment up to three years.
 Punishment for other contravention :- in contraventions like
dismisses, discharges, reduces or otherwise punishes an employee,
shall be punishable with imprisonment up to one year or with fine up
to Rs.4000 or with both
 Power to recover damages :- If employer fails to pay the amount
of contribution then corporation may recover from the employer by
way of penalty.
 Power of court to make orders :- If court makes order for
employer- if employer is not able to make this order within period
then employer shall be punishable with imprisonment in respect
thereof U/S.85 and shall also be liable to pay fine up to Rs.1000 for
everyday.
 EMPLOYEES PROVIDENT FUND AND MISCALLANEOUS PROVISIONS ACT -1952
 Applicability i) Every establishment which is a factory engaged in any industry
specified in Schedule 1 and in which 20 or more persons are
employed and
 ii) Any other establishment employing 20 or more persons which
Central Government may, by notification, specify in this behalf.
(Infancy period of 3 years has been withdrawn by ordinance w.e.f.22-9-97)
 iii) any establishment employing even less than 20 persons can be
covered voluntarily u/s 1(4) of the Act.
 Eligibility
Any person who is employed for work of an establishment or employed through
contractor in or in connection with the work of an establishment
 Benefits
Employees covered enjoy a benefit of Social Security in the form of an unattachable,
unwithdrawable (except employees and employers contribute equally throughout the
covered persons employment. This sum is payable normally on retirement or death.
Other Benefits include Employes’ Pension Scheme and Employee’s Deposit Linked
insurance Fund.
 Penal Provisions
Liable to be arrested without warrant being a cognisable offense. Defaults
by employer in paying contributions or inspection/ administration charges
attract imprisonment up to 3 years and fines up to Rs. 10,000 (S.14.) For
any retrospective application, all dues have to be paid by employer with
damages up to 100% of arrears.
 Benefits at a glance
 1.   Advance for Purchase of Dwelling Site.
2.   Advance for Purchase of Dwelling House/flat.
3.   Advance for Construction of a House.
4.   Advance for Repayment of housing loan to State Govt. housing board
or any other govt. recognised housing finance body.
5.   Advance for IIIness viz. Hospitalisation for more than month, major
surgical operations or suffering from TB, leprosy, paralysis, cancer, heart
ailment etc.
6.   Advance for Marriage of Self/Son/Daughter/Sister/Brother.
7.   Advance for Post MatriculationEducation of Son/Daughter.
8.   Advance for Damage to the property Due to Natural calamity
(Flood Riot/Earthquake).
9.   Advance for Member affected by cut in the supply of electricity.
10. Advance for Member who is physically handicapped.
 [ A member employee can also withdraw full amount
standing to his credit.   in fund (para 69).....]

a) on Resignation.
b) On Retirement from the service on attaining the age of 58 yrs.
c) on Retirement on account for permanent or total incapacity to
work.
d) immediately before Migration from India for permanent
settlement abroad or for taking up     employment abroad.
e) on Termination due to voluntary retirement Scheme,
retrenchment, closure of the factory/establishment.
 MATERNITY BENEFIT ACT-1961
 This Act applies to women who work in factories, mines, plantations,
performance establishments and shops with more than 10 employees,
and provides 12 weeks paid maternity leave, and 6 weeks paid leave in
relation to miscarriage or termination of pregnancy. It does not apply to
employees covered by the ESI (see ss. 2, 3, 5(2) and 9.).
 Maternity benefit is paid to employees who have been employed for not
less than 80 days. It is paid at the average daily wage, calculated for the
three months preceding absence on maternity leave, and is paid for a
period of six weeks before delivery and six weeks after.
 However, the employee also has the option of taking the full 12 weeks
after delivery.
 It is prohibited to employ female employees during the six weeks after
delivery, miscarriage or termination of pregnancy.
 Pregnant employees can request that they not perform arduous work or
work which involves long hours of standing or which is likely to interfere
with the pregnancy, the normal development of the foetus, adversely
affect health or cause a miscarriage up to 10 weeks before the expected
delivery
 In addition, if the employer does not provide free facilities for pre-
and post-natal care, the employee is entitled to a medical
allowance. Maternity benefit can be paid in advance for the period
preceding the expected delivery, upon proof of pregnancy (see ss.
4, 5, 8 and 9.).
 Notice must be given before the employer is required to permit
maternity leave, but failure to give notice does not disentitle the
employee from receiving maternity benefits (see s. 6.).
 One month of leave and benefits is available for women who are ill
due to pregnancy, delivery, premature birth, miscarriage,
termination of pregnancy and tubectomy if medical evidence is
provided. This is in addition to the normal 12 weeks maternity leave
and allowance (see s.10.).
 Under s.11, in addition to other scheduled breaks, nursing breaks
are to be provided twice daily until the child is 15 months old.
 It is prohibited to dismiss, or issue a notice of dismissal for, an
employee while they are absent on maternity leave, or to vary her
conditions of service. Dismissal of a female employee during
pregnancy does not deprive her of her right to maternity allowance
or medical bonus allowance except in cases of gross misconduct.
No deductions from wages can be made on account of maternity
leave, the fact that lighter duties were performed before taking
maternity leave or the taking of nursing breaks (see ss. 12 and
13.).
 The Act is enforced by penalty provisions and there is provision for
the appointment of an inspector with powers to inquire into
complaints, enter premises, examine persons, require the
production of information, take copies of documents and direct
payment of monies. The later power is subject to appeal provisions
(see ss. 14-23.).
 PAYMENT OF GRATUITY ACT 1972
 The Act provides for the payment of gratuity to workers employed in
every factory, shop & establishments or educational institution
employing 10 or more persons on any day of the proceeding 12 months.
A shop or establishment to which the Act has become applicable shall
continue to be governed by the Act even if the number of persons
employed falls bellow 10 at any subsequent stage.
 All the employees irrespective of status or salary are entitled to the
payment of gratuity on completion of 5 years of service. In case of death
or disablement there is no minimum eligibility period. The amount of
gratuity payable shall be at the rate of 17 days wages based on the rate
of wages last drawn, for every completed year of service. The maximum
amount of gratuity payable is Rs. 3,50,000/-.
 Formula is - Last Wages *15*No. of services/26

 Nomination
 Each employee is required to nominate one or more member of his
family, as defined in the Act, who will receive the gratuity in the event of
the death of the employee.
 PENALTY
 The Act provides that whoever makes false statement for the
purpose of avoiding any payment shall be punishable with
imprisonment for a term which may extend to six months or with
fine which may extend to ten thousand rupees or with both.
 An employer who contravenes any provisions of the Act shall be
liable for imprisonment for a term of not less than three months but
which may extend to one year or with fine which shall not be less
than ten thousand rupees but which may extend to twenty
thousand rupees or with both.
 Where the offence relates to non-payment of gratuity the employer
can be punished with imprisonment for a term which is not less
than six months.
 PLANTATION LABOUR ACT -1951
 The Plantations Labour Act, 1951 (PLA) applies to any land used or intended to
be used for growing tea, coffee, rubber, cinchona or cardamom or any other
plant which measures 5 hectares or more and in which 15 or more workers are
employed on any day of the preceding 12 months.
 The State Governments can be notification apply this law to any other land too
even if it measures less than 5 hectares and employ less than 15 workers.

 Some definitions under PLA, 1951 [Section 2]:

 Adolescent: a person between the age of fourteen and Eighteen
 Child: a person who has not completed his 14 th year
 Employer: the person who has the ultimate control over the affairs of the
plantation and where the affairs of the plantation are entrusted to any other
person, such other person shall be the employer in relation to that plantation.
Family: means his or her spouse and the legitimate and adopted children of the
worker dependent upon him or, who have not completed their eighteenth year,
and includes, where the member is a male, his parents dependent upon him.
 Plantation: any plantation to which this Act applies and includes
offices, hospitals, dispensaries, schools and any other premises
used for any purposes connected with such plantation.
 Qualified medical practitioner: means a person holding a
qualification granted by an authority specified under section 3 of
the Indian Medical Degrees Act 1916 of under any provincial or
State Medical Council Act.
 Wages: as defined under clause (h) of section 2 of the Minimum
Wages Act 1948 (11 of 1948).
 Worker: means a person employed in a plantation for hire or
reward, whether directly or through any agency, to do any work,
skilled, unskilled, manual or clerical, having wages less than Rs.
750/- p.m., but does not include – medical officer, managerial
staff and temporary workers employed in any work relating to
construction, repair, maintena
 nce of roads, bridge, etc.
 Registration of Plantations:
 Section 3-B of the PLA, 1951 makes it compulsory for every employer of a
plantation to register it within sixty days of its coming into existence.
 Inspecting staff:  Under Section'4, the state government has the power to
appoint for the state a duly qualified person to be -the chief inspector of
plantations and other persons to, be inspectors subordinate to the chief
inspector.
 Power and functions of Inspectors [Sections 5&6]:
 to examine and make inquiries to ascertain whether the provisions of this Act
are being observed in any plantation.
 can enter, inspect and examine with assistants any part of plantation at any
reasonable time and take statements on any person, provided that no person
shall be compelled to answer any question or make any statement tending to
incriminate himself.
 Certifying surgeons. [Section 7]: The state government is responsible for
appointing qualified medical practitioners to be certifying surgeons for within
local limits of a plantation or class of plantations.
 Duty of the certifying surgeon:
 the examination and certification of workers,
 the exercise of such medical supervision where adolescents and children are
or are to be employed in any work in any plantation which is likely to cause
injury to their health.
 HEALTH - Responsibilities of the Employers
(Facilities to be provided in the Plantations)
 Drinking Water: In every plantation effective arrangements shall
be made by the employer to provide and maintain at convenient
place a sufficient -supply of wholesome drinking water for all
workers [Section 8].
 Conservancy: There shall be a sufficient number of conveniently
situated & accessible separate latrines and urinals for males and
females in every plantation. All of these are to be maintained in a
clean and sanitary condition [section g].
 Medical facilities: Medical facilities for workers and their families
(as prescribed by the state government) have to be maintained
and made available by the Employer [Section 10].
 In the absence of such prescribed medical facilities, the
Chief Inspector can arrange for provision- and maintenance
of medical facilities and recover the costs of these from the
defaulting employer.  [Actual Recovery of such costs will be
done by the Collector as arrear of Land Revenue on Chief
Inspectors' certification].
 WELFARE
 Canteens: Under Section 11, the State Government has been empowered
to ask Employers to open Canteen(s) in Plantations employing one hundred
and fifty workers or more and to make rules for the working and
maintenance of canteens.
 There is also a provision for the constitution of a managing
committee in which the workers are represented.
 Creches: The employer must provide and maintain suitable rooms for
children where the number of workers is more than fifty or the number of
children of women workers is twenty or more [Section 12].
 Creches are to be maintained in a clean, safe and sanitary conditions and
are to be run by a woman trained n the care of children and infants as per
the law.
 Recreational facilities: every employer to make provision in the Plantation
for recreational facilities for the workers and their children [Section 13].
 Educational facilities: In every Plantation where the children- of the
workers between the ages of six and twelve exceed the number twenty five,
the employer is under obligation to provide educational facilities as may be
specified by the State Government [Section 14].
 Housing facilities: It is the duty of the employer to provide and maintain
necessary housing accommodation for every worker and his family [Section
15].
 Every worker (including his family) is entitled to a housing accommodation
after six months of continuous service whether staying inside or outside a
plantation and who has expressed a desire in writing to live in the
plantation. The requirement of continuous service of six months will not
apply to a worker who is the member of the family of a diseased worker
who was residing in the plantation. Under Section 16, the-State
Government has been empowered to make rules relating to standards of
housing and constitution of an advisory board with representatives of
workers and employers.
 Liability of employer in case of accidents resulting from collapse of
houses provided by him: If the house collapse is not solely or directly
attributable to a fault on the part of the occupant or to a natural calamity,
the employer shall be liable to pay compensation to the worker or his kin
suffering injury or death. In order to claim this compensation, the
worker or his next of kin or his authorised agent must write to
Labour Commissioner within 6 months of the accident. The
compensation would be paid under the Workmen's Compensation Act,
1923.
 Other facilities: The State Government has the power to make
rules requiring the plantation employer to provide the workers and
umbrellas, blankets, rain coats or other like amenities for the
protection of workers from rain or cold [Section 17].
 Welfare Officers: In plantations that empl0y three hundred
workers or more, the employer has to employ welfare officers as
prescribed [Section 18].
 The notice of period of work has to be displayed and
correctly maintained in every plantation. An employer can
refuse to employ a worker for any day on which he is more
than half hour late from the time displayed on notice of
period of work [Section 23].
 No Night for women and children: Women and children can be
employed only between the hours of 6am and 7pm unless
permitted by the State Government [Section 25].
 Non-adult workers to carry tokens: No child or adolescent will
be allowed to work in the plantation unless the employer has a
certificate of fitness from the Certifying Surgeon. The token that
non adult worker is required to carry bears a reference to this
fitness certificate valid for twelve months. The fee for the fitness
certificate, if any, is to be paid by the employer and cannot be
recovered from the young worker or his/ her guardian [Section 26 &
27).
 Sickness and maternity benefits: Every worker is entitled to
sickness allowance, provided this is certified by a qualified medical
practitioner. Women workers are entitled to maternity allowance
and benefits under the Maternity Benefit Act, 1961 [Section 32].
 CONTRACT LABOUR (REGULATION AND ABOLOTION ACT)
-1970
 The Object of the Contract Labour Regulation and Abolition) Act,
1970 is to prevent exploitation of contract labour and also to
introduce better conditions of work.
 A workman is deemed to be employed as Contract Labour when he is
hired in connection with the work of an establishment by or through
a Contractor. Contract workmen are indirect employees. Contract
Labour differs from Direct Labour in terms of employment
relationship with the establishment and method of wage payment.
 ContractLabour, by and large is not borne on pay roll nor is paid
directly.
 The Contract Workmen are hired, supervised and remunerated by
the Contractor, who in turn, is remunerated by the Establishment
hiring the services of the Contractor
 Registration And Licensing
The Act applies to the Principal Employer of an Establishment and the
Contractor where in 20 or more workmen are employed or were employed
even for one day during preceding 12 months as Contract Labour.
 This Act does not apply to the Establishments where work performed is of
intermittent or seasonal nature.
 If a Principal Employer or the Contractor falls within the vicinity of this Act
then, such Principal Employer and the Contractor have to apply for
Registration of the Establishment and License respectively.
 The Act also provides for Temporary Registration in case the Contract Labour
is hired for a period not more than 15 days.
 Any change occurring in the particulars specified in the Registration or
Licensing Certificate needs to be informed to the concerned Registering
Officer within 30 days of such change.
 From combined reading of Section 7 and Rules 17 & 18 of the Contract
Labour (Regulation and Abolition) Central Rules, 1971, it appears that the
Principal Employer has to apply for registration in respect of each
establishment. Other important point to note is that a License issued for One
Contract cannot be used for entirely different Contract work even though
there is no change in the Establishment.
 Penal Provisions
Section 9 of the Act provides that the Principal Employer, to whom
this Act is applicable, fails to get registered under the Act, then
such Principal Employer cannot employ contract labour.
 It also appears that if the Establishment is not registered or if the
Contractor is not licensed then the contract labour shall be
deemed to be the direct workmen and the Principal Employer or
the Establishment shall be liable for the wages, services and
facilities of the contract labour etc.
 For contravention of the provisions of the Act or any rules made
thereunder, the punishment is imprisonment for a maximum term
upto 3 months and a fine upto a maximum of Rs.1000/-.
 Responsibilities
The Act enjoins Joint and Several responsibity on the Principal
Employer and the Contractor. The Principal Employer should ensure
that the Contractor does the following:
a) Pays the wages as determined by the Government, if any, or;
 b) Pays the wages as may be fixed by the Commissioner of Labour.
 c) In their absence pays fair wages to contract labourer.
 d) Provides the following facilities:
i. Canteen (if employing 100 or more workmen in one place) and if
the work is likely to last for 6 months or more.
ii. Rest rooms where the workmen are required to halt at night and
the work is likely to last for 3 months or more.
iii. Requisite number of latrines and urinals - separate for men and
women.
iv. Drinking water.
v. Washing.
vi. First Aid.
vii. Crche
 e) Maintains various registers and records, displays notices, abstracts
of the Acts, Rules etc.
 f) Issues employment card to his workmen, etc.
 Checklist For Principal Employer
1. Registration of the Establishment.
2. Display of the following notices rate of wages, hours of work, wage
period, date of payment of wages, date of payment of unpaid wages and
name and address of the inspector having jurisdiction.
3. Maintenance and Preservation of Register of Contractor.
4. Filing of Return of Commencement and Completion of the Contract.
5. Filing of Annual Return.
6. Supervising the responsibilities of Contractor to avoid enjoining of the
liabilities.
7. Ensure provision that facilities of Canteen, Drinking Water, Washing,
Rest Room, Latrines and Urinals, First Aid, Crche are provided by the
Contractor.
 Checklist For Contractor
1. Licensing.
2. Renewal of the License.
3. Maintenance and Preservation of Register of Persons employed, Muster
Roll, Register of wages, Register of Fines, Register of Deductions for
damages or loss, Register of advances, Register of overtime.
 4. Display of Notice rate of wages, hours of work, wage period,
date of payment of wages, date of payment of unpaid wages and
name and address of the inspector having jurisdiction.
5. Provide facilities of Canteen, Drinking Water, Washing, Rest
Room, Latrines and Urinals, First Aid, Crche.
6. Employment card.
7. Service Certificates.
8. Half yearly return.
 THE KERALA SHOPS AND COMMERCIAL ESTABLISHMENTS ACT,
1960
 I.
 OBJECT : To provide for the welfare of the employees employed in the
shops and commercial
 establishments and to regulate the conditions of their work and
employment
 II.
 APPLICABILITY : It extends to the whole state of kerala and applies to
all shopes and
 commercial establishments defined under the Act

 III. REGISTRATION OF THE EASTABLISHMENT : The employer of

every shopes and
 commercial establishments shall apply for registration in Form B-I with
prescribed fee to the
 competent authority (Assistant labour officer-Grade III) within sixty days
from thedate on which
 the eatablishment commences its work
 RENEWAL OF REGISTRATION: Every employer shall renew the
registration every year at
 least 30 days before the expiry of the registration for the previous
year. The application for
 renewal with the registration certificate and prescribed fee shall be
submitted to the competent
 authority within the period. The fee for registration and renewel
shall be remmitted in the office of
 the Asst. labour officer concerned or treasury remittence
 VI
 AMENDMENT OF REGISTRATION:Any employer who desires to
have his registration
 certificate amended shall give a notice in Form-B--III to the
competent authoritynwith copy to the
 inspector having jurisdiction over the area in which the
establishment is situated along with pre
 scribed fee for amendment of registration certificate
 APPLICATION FOR DUPLICATE REGISTRATION CERTIFICATE :
 If a registration certificate is lost, stolen or destroyed, the
employer shall forth with report the
 matter to the competent authority and make an application for the
issue of a duplicate registration
 certificate along with priscribed fee.
 80
 VIII APPEALS : Any aggrieved Person by an order of the competnt
authoprity refusing to grant or
 renew a registration certificate or cancelling or suspending the
same may within a period of sixty
 days of the recepit of the order appleal to the District Labour
Officers (E) on Payment of fees
 Prescribed.
 CLOSING OF SHOPS : Every shops shall remain entirely closed on
one day of the week and
 a notice shall be permanently exhibited in the shop specifying the
day of closure. This is not
 applicable to shops excempted in the Act or excempted by the
Govt.

 HOURS OF WORK : No employee in any establishment shall be

required to work for more
 than eight hours in any day and 48 hours in any week. The number
of hours of which including
 overtime shall not exceed ten hours in any day except on stock
taking etc. and the total number
 of hours of over time shall not exceed fifty for any quarter.
 EXTRAWAGES FOR OVERTIME WORK: Where an employee works in
any establishment
 for eight hours in any day or for more than forty eight hours in any
week shall inrespect of such
 overtime work be entitled to twice the ordinary rate of wages.
 XI
 WEEKLY HOLIDAYS : Every Person employed in shops or a
commercial establishments
 shall be allowed in each week a holiday of one whole day.
 XI A INTERVALS FOR REST:- No period of work of an employee in an
establishment shall be given
 rest for atleast one hour before work of four hours
 Employees are eligible for leave in lien of:
 i. Annual leave for 12 days with wages to employees after
completion of 12 months
 continuous service.
 ii. Leave with wages not exceeding twelve days on the ground of
any sickness or accident
 sustained by him.
 iii. Casual leave with wages not exceeding twelve days.
 iv. Six days special casual leave for sterilisation operation in the
case of male employees and
 14 days in the case of female employees, subject to the provision
of the Act.
 XIII DISMISSAL : No employee shall be dismissed except on a
reasonable cause and subject to
 Section-18 of the Act. The aggrieved employee may file appeal
within sixty days to the date of
 delivery of the order terminating his services with the employer, to
the appelllate authority
 (Deputy labour Commissioner concerned)
 84
 Page 3
 XIV REGISTERS AND RECORDS TO BE MAINTAINED BY THE
EMPLOYER :
 1. Register of employment in Form A or B
 2. Service record in Form-BB
 3. A register of holidays and leave in Form-F
 4. A visit book
 5. Display a notice of hours of work in Form-D
 6. A notice of weekly closure
 7. A notice containg the extract of the Act and Rules
 WORKER’S EDUCATION SCHEME
 A tripartite semi- autonomous body known as the Central Board for
worker’s Education, registered as a society, was set up under
Ministry Of Lavour , GOI to formulate policies & programmes and to
administer Worker’s Education Scheme.
 The board has its representatives from Central, & State Govts ,
orgns of employers & workers & educational institutions.
 Headquarters in Nagpur.
 Indian Institute of Worker’s Education was established by the board
in 1970 to conduct training programmes at national levels for its
official and trade union leaders.
 It conducts training programmes and refresher courses for
education officers, courses for trade union functionaries and
provides library and allied services.
 OBJECTIVES
 1.To equip all sections of workers , including rural workers for
intelligent participation in social and economic development of
nation.

 2.To develop among workers a greater understanding of problems

of their social and economic environment

 3.To develop leadership

 4.To develop strong, united and more responsible trade unions

through more enlightened members and better trained officials.
 5. To strengthen democratic processes and traditions in trade
union movement

 6.To enable trade unions themselves to takeover ultimately the

functions of worker’s education.
 CENTRAL GOVERNMENT MACHINERY FOR LABOUR
ADMINISTRATION
 The Organisation of the Chief Labour Commissioner (C))known as
Central Industrial Relations Machinery was set up in April, 1945 in
pursuance of the recommendation of the Royal Commission on Labour
in India and was then charged mainly with duties of prevention and
settlement of industrial disputes, enforcement of labour laws and to
promote welfare of workers in the undertakings falling within the
sphere of the Central Government.
 BROAD STRUCTURE OF THE ORGANISATION:
 CIRM is headed by the Chief Labour Commissioner (Central)[ CLC (C) ].
 It is entrusted with the task of maintaining good industrial relations in
the Central sphere.
 At the headquarters, CIRM has a complement of 25 officers who
perform line and staff functions.
 In the field, the machinery has a complement of 253 officers and their
establishments are spread over different parts of the country with
zonal, regional and unit level formations as presented in the
organogram
 Objectives of the CLC(C) Organisation.
 1. Promotion of peaceful and harmonious Industrial Relations in the
Central Sphere through prevention & settlement of I.ds. in the Industries
for which Central Govt. is the appropriate Govt.
 2. Verification of the Trade Union's Membership.
 3. Enforcement of labour laws in central sphere.
 SPECIFIC FUNCTIONS OF CIRM
 The CIRM administers the Labour Laws in the industries for which The
Central Govt. is the `appropriate Government' under that Act, Its
functions therefore are:
 * Prevention and settlement of industrial disputes;
 * Enforcement of Labour Laws;
 * Enforcement of Awards and Settlements;
 * Conduct of inquiries into the breaches of Code of Discipline;
 * Promotion of Works Committees and Workers' Participation in
Management;
 * Collection of statistical information;
 * Defense of court cases and writ petitions arising out of
 Implementation of labour laws.
 LABOUR ADMINISTRATION
 Labour administration is defined by ILO Convention No. 150 as
"public administration activities in the field of national labour
policy." It is an essential tool at the disposal of governments in
fulfilling their responsibilities towards social issues.
 FUNCTIONS OF LABOUR ADMINISTRATION
 Labour protection
 Employment policy
 Study, research and statistics
 Labour relations
 MINISTRY OF LABOUR AND EMPLOYMENT
 The main responsibility of the Ministry of Labour & Employment is to
protect and safeguard the interests of workers in general and those who
constitute the poor, deprived and disadvantaged sections of the society,
in particular, with due regard to creating a healthy work environment for
higher production and productivity and to develop and coordinate
vocational skill training and employment services
 Objectives
 Labour Policy and legislation
 Safety, health and welfare of labour
 Social security of labour
Policy relating to special target groups such as women and child labour
 Industrial relations and enforcement of labour laws in the Central sphere
 Adjudication of industrial disputes through Central Government Industrial
Tribunals cum Labour Courts and National Industrial Tribunals.
 DIRECTORATE OF FACTORIES AND BOILERS
 The department of Factories and Boilers is the functionary of the Labour
Secretariat of Government of Karnataka.
 The main functions of the department is to enforce various Labour and
Environmental related legislations viz., Factories Act, Payment of Wages
Act, Maternity Benefit Act, Indian Boiler Act and the Environment
(Protection) Act.
 The main aim and objective is to protect the interest of the workmen to
ensure minimum basic amenities, prevent accidents, occupational
diseases likely to occur in the course of employment, ensure conducive
safe work place.
 The department also conducts periodical inspection and certification of
registered boilers.
 More stress is being given in respect of high-pressure boilers and in
particular the one installed at power generating units.
 Scrutiny of design, erection of boilers and suggestions for repairs are
also the prime works carried out to ensure boiler safety.
 Regular examinations and certifications of personnel required to
operate and maintain the boilers are being conducted in addition to
imparting training.