Employee Welfare & Social Security
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MODULE1
SOCIAL&
L
ABOURW
ELFARE
INTRODUCTION
The concept of social welfare is
generally
understood
as
protection
provided
by
the society to its members through a series of public measures against the
economic and social distress that otherwise is caused by the stoppage or
substantial reduction
of
earnings
resulting
from
sickness,
maternity,
employment
injury,occupationaldiseases,unemployment,invalidity,oldageanddeath.
Labour welfare refers to the welfare activities done for the comfort and
improvement, intellectual and social development of the employees over and
above
the
wages
paid
which
includes
services
facilities
and
amenities
to
perform
their work in a healthy and congenial environment. These welfare facilities
improvethehealthandmoraleofemployees.
It plays a significant role in the industrial development and economy. It is an
important facet of industrial relations that gives an extra dimension in giving
satisfaction
to
the
worker
in
a way
which
a good
wage
cannot.
With
the
growth
of
industrialization and mechanisation, labour welfare has acquired added
importance. A happy and contented workforce is an asset for the industrial
prosperity of the nation. Labour welfare
is
nothing
but
the
maintenance
function
of personnel in the sense that it is directed specifically to the preservation of
employeehealthandattitudes.
DEFINITIONOFLABOURWELFARE
“Welfare work covers all the efforts which employers make for the benefits of
their employees over and above the minimum standard of working conditions
fixed
by
the
factories
act
& over
& above
the
provisions
against
accident,
old
age
unemploymentandsickness”.
N.M.JOSHI “Labour welfare should be understood as meaning such as
services, facilities amenities which may be established in an organization to
enable the persons employed in them to perform their work in healthy
congenial
surroundings
and
providing
them
facilities
conducive
to
good
health
andmorale”.—INTERNATIONALLABOURORGANISATION
ELEMENTSOFLABOURWELFARE
1. T
oprovideworkersabetterlifeandhealth.
2. Torelievetheworkersfromindustrialfatigue.
3. Tomakeworkershappy,efficientandcontent.
4. oimprovetheintellectualandculturalconditionsoflivingofemployees.
T
FEATURESOFLABOURWELFARE
1. Thesearevoluntaryactsonpartoftheemployer.
2. It includes facilities aimed at improvement and betterment of workers'
social,moral,economicandintellectualconditions.
3. Labour welfare measure is introduced by the employer, government,
employeesoranysocialorcharitableagency.
4. Labour welfare measures are flexible and changing with new measures
beingaddedtotheexistingones
5. The
welfare
measures
are
in
addition
to
regular
wages
and
other
economic
benefits available to the workers due to legal provisions & collective
bargaining.
6. The purpose of labour welfare is to bring about the development of the
whole personality of the workers to make him a good worker and good
citizen.
OBJECTIVEOFLABOURWELFARE
Objectivesoflabourwelfarecanbeseenfromdifferentpointsofview:
1. Humanitarian
Aspect:
It
enables
the
workers
to
enjoy
a healthy,
full
and
richerlifestyleandtoimprovehisefficiencythroughgoodhealth.
2. Economic
Aspect:
To
provide
the
workers
with
the
basic
amenities
of
life,
so that he can take care of himself & his family members in a proper
manner.
3. Civic Aspect: It aims at developing a feeling & sense of responsibility,
dignity, honesty and professional approach among
workers
to
make
them
respectablecitizensofthecountry.
UNIT-2
INDIANLABOURORGANISATION
INTRODUCTION
India
is
a founder
member
of
ILO
which
came
into
existence
in
1919.
At
present
ILO has 175 members. A unique feature of ILO is a TRIPARTITE character.
At
every level in the organization, governments are associated with the 2 other
social partners, namely workers & employers. All the 3 groups are
represented
onalmostallthedeliberativeorgansofILO.
ThethreeorgansofILOare:
International Labour
Conference:
General
assembly
of
ILO-
meets
every
year
inthemonthofJune.
Governing Body: Executive council of the ILO- meets thrice in a year in the
monthsofMarch,June&November.
International Labour Office: A permanent secretariat. The work of the
conference & the governing body is supplemented by regional c onferences,
regionaladvisorycommittees,specialconferencesetc..
The ILO aims to ensure that it serves the needs of working women & men by
bringing
together
governments,
employers
& workers
to
set
labour
standards
and
develop policies & device programmes. The very structure of ILO, where the
workers & employers together have an equal voice with governments & its
deliberations , shows social dialogues in action.
It
ensures
that
the
views
of
the
social partners are closely reflected in ILO labour standards, policies &
programmes.
The ILO accomplishes its work through 3 main bodies which comprise
governments, employers & workers representatives. The ILO encourages this
tripartism
within
its
constituents
& member
states
by
promoting
a social
dialogue
b/wtradeunions&employers.
IMPACTOFILOONLABOURWELFAREININDIA
Director General Labour Welfare (DGLW) is dealing with the matters
concerning policy & legislations related to workers & administration of welfare
funds for specified categories of workers through 9 regions headed by welfare
commissionerwhoimplementthewelfareschemes.
DGLW also deals with RASTHRIYA SWASTHIYA BIMA
YOJANA
(RSBY)
which is a scheme that provides smart card based cashless health insurance
coverforBPLfamilies.
With the growth & e
xpansion of factories in the mid 19th century new
avenues for employment were created resulting in migration of
the
labour
force
from
rural
areas
to
urban
areas.
At
this
time
in
the
absences
of
any
state
control,
the
employers
were
less
concerned
about
the
needs
of
their
employees
[working
hours,
low
wages
etc].
This
situation
led
to
enactment
of
a number
of
legislations
beginningfrom1881.
The Factories Act 1881 is the basis of all labour & industrial loss of the
companies. After ILO was formed in 1919, this act was amended [1934]. It
makes
provision
for
safety,
health
& hygiene
of
the
workers.
It
also
prohibits
child
labour.
Under the Mines Act 1923 which applies to workers employed in mines,
the
hours
of
work
are
limited
to
10
hours
per
day
& 54
per
week.
The
periods
of
work including rest intervals shall not spread over
more
than
12
hours
in
a day.
For workers employed underground the daily limit is 9 hours per day. The act
doesnotcontainprovisionsassoovertimework.
The
government
of
India
set
up
an
enquiry
committee
in
1926
to
ascertain
the loop hole for irregularity payment
of
wages.
The
royal
commission
of
labour
consideredthereports&suggestion&enactedpaymentofwagesact1936.
The Industrial Disputes Act 1947 provided for establishment of industrial
tribunalsbytheappropriategovernment.
The weekly holiday act of 1942 prescribes one paid holiday a week for
persons
employed
in
shop,
restaurant
or
theatre.
The
government
is
empowered
tograntadditionalhalfadayholidaywithpayinaweek.
Standing orders act
1946
defines
the
terms
of
employment
of
workmen
in
theformofstandingorderswhichshouldbeingeneralconformitywiththeact.
AGENCIESOFLABOURWELFARE
1. Employers: Employers provide welfare facilities either individually or
collectively through associations. They play an important
role
in
providing
facilities to industrial workers. The facilities
provided
are
voluntary
as
well
asstatutory.
UNIT3
SOCIALS
ECURITY
SOCIALSECURITY
“Social
Security
is
a program
of
protection
provided
by
society
against
the
contingencies of modern life like-sickness, unemployment, old age, industrial
accidents
against
which
the
individual
cannot
be
expected
to
protect
himself
and
hisfamilybyhisownabilityandforesightedness.”- -Fridlander
“By social security we undertake a programme of protection provided by
society against those contingencies against
which
the
individual
of
small
means
cannot effectively provided by his own ability and foresight.” --International
LabourOrganization
“Social security is an attack on five giants namely want, disease,
Ignorance,Squalorandillness.”- -SirWilliamDevergidge
“Social
security
is
a controversial
and
dynamic
subject
with
various
facets,
philosophical, theoretical, humanitarian, financial, administrative, social,
economic,political,statistical,medicalandlegal.”--WeherandCohen
ConceptofSocialSecurity
The idea behind the concept of social security is that the state shall be
responsible for protecting its citizens against
certain
contingencies
of
life.
There
is
no
such
definition
of
social
security
which
may
be
country
to
country
according
to
the
prevailing
social
legislations,
traditions
ideals.
The
basic
principle
of
social
security implies collective action by the community to help a member against
misfortunes and wants he cannot meet with his own resources. It is based on
business
ethics
“ideals
of
human
dignity
and
social
justice”.
Social
security
is
the
security that society furnishes through appropriate organizations against
certain
risks to which its members are exposed. Broadly speaking the idea of social
security is that “The state shall make itself responsible for ensuring
a minimum
standard
of
material
welfare
to
all
its
citizens
on
a basis
wide
enough
to
cover
all
contingenciesoflifefromwombtothetomb.
According
to
ILO
“Social
security
is
the
protection
which
society
provides
for its members through a series of public measures against the
economic
and
social distress resulting from sickness, maternity, employment injury,
unemployment, invalidity, old age and death. These measures
are
also
of
great
importance to a country which is on the way of large scale industrialization as
they
improve
employee’s
morale
by
providing
a sense
of
security
to
them
against
variousindustrialhazards.”
In fact social security is an
attack
on
five
“Giants”
namely
Want,
Disease,
Ignorance, Squalor and illness. Security against giants of “squalor” means
security against all those evils which come through the u
nplanned and
unorganized growth of cities. The ultimate aim is one's economic and political
protection. It is to protect the poor and to ensure that they have an acceptable
standardofliving.
Featuresofsocialsecurity
Social security p
rovides financial help in case of contingencies such as
unemployment, maternity, industrial disease, old age and death etc. From the
analysis of these above mentioned definitions one can identify the following
featuresofsocialsecurity.
I. Social security in some countries is applied to all governmental
programmes and in some countries it is applied only to Social Insurance
programmes.
II. It covers a wide variety of health and welfare schemes, the coverage of
social security is very wide meeting the different contingencies of an
employeemember.
III. Social Security is a dynamic concept and its coverage changes with the
social, economic and political system prevailing in a given country at a
giventime.
IV. A comprehensive scheme of social security consists of “Social Insurance
andsocialassistance".
V. The modern social security scheme is the integration of its two
important
elements of social insurance and social assistance and covering of all
socialrisks.
VI. Social security must
provide
protection
against
all
the
ordinary
risks
of
life
andaswellasspecialrisksofemployment.
VII. It
should
bring
under
protection
all
member
workers
by
hand
and
brain
who
livesolelybytheirmereearnings.
VIII. All social security programmes differ from
country
to
country
but
they
aim
at
providing
some
form
of
cash
payments
to
individuals
to
replace
at
least
apartofthelostincomethatoccurredduetoanysuchcontingencies.
IX. It provides financial
help
in
case
of
contingencies
such
as
unemployment,
maternity, work injury, industrial disease, old age,
widowhood
and
orphan
hoodetc.
U
NIT-4
LABOURADMINISTRATION-1
INTRODUCTION
Labour administration system is all the public administration bodies which are
responsible for and/or engaging in labour administration whether they are
ministerial departments or public agencies, including parastatal and regional or
local agencies, or a
ny other form of decentralized biddies, and for consultation
withandparticipationbyemployersandworkersandtheirorganization.
MEANINGOFLABOURADMINISTRATION
Labour administration is the labour standard that provides a legal and policy
frameworktohelpcountriesshapeitsnationlabourlossandemploymentpolicies
DEFINITION
According to ILO, “Labour administration is defined as public administration
activitiesinthefieldofnationallabourpolicy”.
EVOLUTIONOFMACHINERYFORLABOURADMINISTRATION
In India, till the end of the First
World
War,
labour
problems
had
acquired
neither vastness nor complexity to warrant any serious attention on the part of
both central and
provincial
governments.
Prior
to
1919,
a few
labour
legislations
were in force I.e. Fatal accident act 1885; merchant shipping act,1859;
Factory
act 1888 & 1911; mines act,1901. Most of these acts were
administered
by
the
magistrate. The distribution
of
powers
was
governed
by
the
regulating
act
1773;
Pitt's
India
act
1784
and
various
charter
acts.
It
was
only
1920
when
the
special
post of labour commissioners was created in Madras and Bengal. In 1921, the
Government of Bombay also followed to suit by setting up a labour
commissioner's office. In 1920, the central government also set up the labour
bureau with a view to promoting certain coordination between the Centre and
provinces. But the bureau could only function for a short period of three years
andwasultimatelyabolishedin1923.
The
labour
problems
were
in
the
jurisdiction
of
the
Central
Government
but
it was dealt with by the Department of Industry
Labour.
This
department
was
in
charge of the governor general's executive council and its administrative head
was secretary of the government. L
abour administration was not so strong at
central level as well as province
level.
Its
responsibility
was
on
the
shoulders
of
the provincial government. In 1929,
Royal
commission
on
labour
was
appointed
and its recommendations were accepted by government and labour machinery
and became strong and it is improving till now. The Government of India act,
1935 played a considerable role in labour administration and labour
commissioners had been appointed in many provinces. In
1946,
India
started
5
year p
rograms in which a lot of programs had been taken to strengthen the
labour administration. Today the labour ministry, at
the
central
level,
is
engaged
in enactment of labour legislation where the implementation responsibility is on
the shoulders of labour departments at state level and such departments as
full-fledgedmachinerytoenforcetheselawsateverylevel.
CENTRALMACHINERY
In India, the central government is mainly responsible to enact various
legislations for labour regarding all those subjects falling in union list. The
activities of the ministry are about the concurrent subjects cover, policy laying,
coordination making, control and d
irection. To fulfil all these responsibilities
labour ministry has attached officers, subordinate officers, adjudicating bodies,
autonomous organization and arbitration body. Under the constitution of India,
labour
is
a subject
in
concurrent
list
where
both
the
central
and
state
government
are
competent
to
enact
legislations,
subject
to
certain
matters
being
reserved
for
them. The ministry presently has the main ministry (secretariat), four attached
officers, ten subordinate officers, four autonomous organizations, twenty two
adjudicatingbodiesandonearbitrationbody.
THEMAINMINISTRY(SECRETARIAT)
The Main Ministry of Labour (secretariat) is the middle point for
consideration and decision of all the questions relating to labour so far as the
Government of India is concerned. It is the
neutral
administrative
machinery
for
the
formulation
of
labour
policy,
enforcement
of
labour
laws
and
for
the
promotion
oflabourwelfare.
All the
organizations
and
agencies
involved
in
labour
administration
at
the
Centre
or
the
state
are
guided,
controlled
and
co-ordinate
by
it.
The
government
of
India
allocation
of
business
rules
have
laid
down
in
detail
the
specific
subjects
included.
UNIT-5
LABOURA
DMINISTRATION- 2
DIRECTORGENERALOFEMPLOYMENTANDTRAINING(DGE&T)
The directorate General of Employment and training (DGE&T) in ministry of
labour is the apex organization for development and coordination at National
level for the programmes relating to vocational training including women’s
vocational training and employment services. Employment service is operated
through a countrywide network of employment exchanges. Industrial Training
Institutes
are
under
the
administrative
and
financial
control
of
State
Governments
orUnionTerritoryAdministrations.
FUNCTIONSOFTHEDGE&T
❖ To frame overall policies, norms and standards for vocational training. To
diversify, update and expand training facilities in terms of craftsmen and
craftsinstructors’training.
❖ To
organize
and
conduct
specialized
training
and
research
at
the
specially
establishedtraininginstitutes.
❖ To implement, regulate and increase the scope of training of apprentices
undertheapprenticesAct1961.
❖ Toorganizevocationaltrainingprogrammesforwomen.
❖ Toprovidevocationalguidanceandemploymentcounselling.
❖ To assist scheduled castes/scheduled tribes and persons with disabilities
byenhancingtheircapabilitiesforwageemploymentandselfemployment.
❖ To conduct regular training programmes for Employment Officers and
develop staff training material for use by the Employment Service
personnel.
❖ To collect and disseminate information concerning employment and
unemploymentandprescribeuniformreportingprocedures.
EvolutionofDGE&T
The Directorate General of Resettlement and Employment
(DGR&E)
now
know
as
Directorate
General
of
Employment
and
Training
(DGE&T)
was
set
up
in
July 1945 for the purpose of resettling demobilised Defence service personnel
and
discharged
War
workers
in
civil
life.
After
Independence,
the
Directorate
was
also called upon to handle work relating to displaced persons from Pakistan.
Subsequently, the scope of the Directorate was extended to cover employment
services
to
all
categories
of
job
seekers
in
early
1948,
and
the
training
services
to
allciviliansin1950.
In pursuance of the recommendations of the Training and Employment
Service committee (Shiva Rao Committee set up in 1952) the day-to-day
administrative control of the Employment Exchanges and Industrial Training
Institutes (ITIs) was transferred to the State Governments/Union Territory
Administrations with effect from 1.11.1956. Cost sharing by the Centre with the
State Governments to the extent of 60% of the cost of the organisation was
continued upto 31-03-1969 after which the scheme was discontinued based
on
the decision taken by the
National
Development
Council
in
May,
1968.
Thus
full
financial responsibility for Manpower and Employment Schemes and the
Craftsmen
Training
Scheme
(Industrial
Training
Institutes)
was
transferred
to
the
State Governments/Union Territory Administrations with effect from
01-04-1969.
With each
successive
Five
Year
Plan
there
had
been
considerable
expansion
of
the activities of the
Employment
Service
and
Training
Service
in
the
Centre
and
theStates
TASKSANDRESPONSIBILITIESOFDGE&T
The Employment Service is now the joint concern of the Central and State
governments.
The
respective
responsibilities
of
the
Government
of
India
and
the
Stategovernmentareasunder:GovernmentofIndia
❖ Establish in collaboration with State Governments national policies,
standards and procedures to be followed by this Employment Service in
theStates;
❖ CoordinatetheworkoftheEmploymentServiceintheStates;
❖ Plan and formulate programmes for expansion and development of the
Employment service in
consultation
with
State
Governments
and
examine
local
programmes
and
procedures,
through
appropriate
officers
with
a view
to ensure that agreed policies are being implemented, standards
maintainedandprogrammesfollowed;
❖ Conduct, whenever necessary, training programmes for Employment
Officers and develop staff training materials for use by the Employment
ServiceintheStates;
❖ Provide
central
machinery
for
adjustment
surplus
and
shortages
of
workers
indifferentstates;
❖ Collect and disseminate information concerning employment and
unemploymentandprescribeuniformreportingprocedures;
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