CHAPTER – I

INTRODUCTION

1.1 INTRODUCTION

First Chapter is an introductory chapter which provides an overview of the study context.
It enlightens the detailed study about employee welfare schemes. It includes definitions,
concept, classification and historical development of employee welfare schemes. This
Chapter devoted a detailed study on the review of Indian education system and evolution
of Indian education policy. This study also sheds light on the provisions regarding
employee welfare and social welfare in the Indian educational sector and rational of
study.

1.2 MEANING OF EMPLOYEE WELFARE

In India, employee welfare began with its extended meaning, but has progressively
become narrower in standpoint. The primary goal of their employee welfare scheme is to
stimulate a happy employer and employee relations. Usually, it gives a psychologically
satisfying work environment. To satisfy the legal requirements one must give employee
welfare facilities. Employee welfare tries at giving such service amenities and facilities as
would enable the employee in factories, organizations and industries to do their work in a
healthy harmonious environment to good health and high morale.

The term welfare implies several ideas, suggestions and implications, such as the state of
betterment, health, wellness, welfare, success and the advancement of human resources.
The term is gotten from the French word "WELFARE". This French word is
"prosperity or joy or success of people". Welfare infers the setting up of least alluring
standard and gives offices like wellbeing, nourishment, shelter, medical help, training,
protection, employee stability, recreation and so on. Such offices empower the employees
and his family to lead a decent work life, family life and social life. Employee welfare

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likewise works to remove the negative impacts of large-scale industrialization and
urbanization. It has procured included significance. The employees in the business can't
adjust to the pace of current existence with minimum sustenance comforts. They need an
added support to keep body and soul together. Employers are realizing the significance of
their part in giving these additional enhancements. But then, they are not generally ready
to satisfy the employee’s demands, however sensible they may be. They are essentially
concerned with the reasonability of the organization.

Each individual has some requirements and goals which he/she wants to satisfy. Any
work which satisfies their requirements and objectives give him happiness. There are
some situational factors bound for job satisfaction. The major causes of job satisfaction
are salary, incentive systems, the length of working hours, the work environment and the
scope for promotion, the behavior of the executive, security, and identification of merit.
Furthermore, proper evaluation of performance, fair behavior and social relationship with
associates, etc.; are also contributory factors.

Employee welfare facilities empower employees to live a brighter and higher satisfying
life. After employees have been hired, trained and rewarded they desire to be retained and
maintained to help the betterment of the organization. Welfare amenities are intended
prosperity, joy, fulfillment, preservation and improvement of Human resources, they don't
regularly result in any financial services to the employees nor are these offices gave by
employers alone, government, and non-governmental agencies and trade unions to
provide towards employee’s advantages.

In the organization, employee welfare amenities affect the performance of the employees
as well as on the productivity of the organization. While completing work through
employees, the management must provide needed welfare amenities for all employees.

Welfare is a widespread concept and connotes a state of living of an individual or a

group, with the total environment in a desirable relationship – ecological, economic and
social. Welfare involves both the economic and the social contents of welfare.

The aim of economic welfare is to raise economic production and productivity through
advancement by developing impartial distribution. The object of social development by

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such means as a social improvement, social legislation, social activity, social practice,
social work. Employee welfare is a field of social welfare conceptually and operationally.
It implies a state of joy, prosperity, well-being, happiness, satisfaction, protection and
growth of human resources.

Employee welfare covers a broad field and also helps to a motivation of employees. The
primary object of employee welfare is to enhance the life of employees and to retain them
well and guided. Welfare measures may be both statutory and Non-statutory laws oblige
the employer to reach certain facilities to employees in addition to wages or salaries. The
management ought to give obliged welfare services to all employees in such way that
employees become satisfied and they work more effectively and more efficiently.

Employee welfare, however, it has been demonstrated to add to productivity movement,

is costly. Every head honcho relying upon his needs gives fluctuating degrees of
significance to working welfare. Employee welfare is a far-reaching term. The
accomplishments of welfare have reached out yet ordinary payments and other financial
benefits, favorable to Employee according to the certain procurements. Welfare schemes
might likewise be given by the government, trade unions and non-government
organizations through the manager. The essential motivation behind employee welfare is
to advance the life of the employees and keep them happy and satisfied. Employee
welfare today has turned into an especially incredible subject. It covers an incredibly wide
field.

Employee welfare is a broad term including various services, benefit and amenities give
to employees and by the managers. Through such liberal incidental advantages, the head
honcho makes life worth living for employees. The Employee welfare measures are not
fixed. It changes constantly. Welfare measures are well beyond the wages paid to
employees.

Wellbeing, security and welfare are the measures of advancing the proficiency of
employees. The different welfare schemes gave by the employer will have the immediate
effect on the wellbeing, physical and mental effectiveness, assurance and general
proficiency of the employee and in this way adding to the higher profitability. A
percentage of the services and organizations which fall inside of the sneak peek of

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employee welfare incorporate satisfactory flask offices, convenience courses of action,
and recreational offices, medical offices, transportation facilities for making a trip from &
to the work environment. Employee welfare covers an adequate field and signifies a
condition of well-being, happiness, fulfillment, protection and refining of HR furthermore
serves to the inspiration of a specialist. The principal purposes of Employee welfare are to
enhance the life of employees and to remain them cheerful and led that serve to the
improvement of the organization.

Employee welfare is adaptable and varies every once in a while, society to culture, region
to area and industry to industry. Employee welfare plans additionally change as per the
age gathering, sex, socio-social organization, marital status, a level of education, and
level of industrialization and general measures of economic growth of the individuals.

M.V. Moorthy has assessed the impact of employee welfare schemes and hold that
employee welfare has two sides, negative and positive. On the one hand, it is associated
with the counteracting of the harmful effects of large-scale Industrialization on the
personal, family and social life of the employee, while on the other hand, the positive
side, it deals with the provisions of opportunities for the employee and his family for a
socially and personally good life.

The term “employee welfare” is very comprehensive and includes various types of
activities undertaken for the economic, social, intellectual or moral benefit to the
employee community. The activities are so varied that the concept of employee welfare
may vary from country to country.

L. S. Kudchelkar calls these two factors “the long arm of the job,” and “the social
invasion of the factory.”It is noteworthy that working-environment in industries/mines is
such as adversely affects the workers’ health because of the excessive heat or cold, noise
odours, fumes, dust and lack or inadequacy of sanitation and pure air etc., All these lead
to occupational hazards. These have, therefore, to be held in check by providing
ameliorative services, protective devices and compensatory benefits following of accident
or injury or disablement. This has been referred to as “the long arm of the job which
stretches out its adverse effects on to the worker long after his normal 8 hour.” Hence, the
need for the provision of welfare services within the premises of the factory, mine or

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plantation arises. When a worker, who is in fact a ruralite, comes to work in a factory, has
to work and live in unhealthy, congested factories and slum areas, with no outdoor
recreation facilities. To escape from the tiring conditions of his tedious and tiresome job,
he absents himself, become irregular and often undisciplined. Hence, the need for
providing welfare services arises. For whatever improvements in the condition of work
and life of the employees, whatever leads to increasing adaptation of the worker to this
job, and whatever make him fully contented lessen his desire or need to the burden of this
social invasion of the factory.

There is a social reason also as pointed out by the Labour Investigation Committee, “the
provision of canteens improves the physic, entertainment reduce the incidence of vices;
medical aid and maternity and child welfare services improve the health of the workers
and bring down the rates of general, maternal and infantile morality; and education
facilities increase their mental efficiency and economic productivity.”

1.2.1 DEFINITIONS OF EMPLOYEE WELFARE SCHEMES

A few definitions of labour welfare measures are given as under: -

The oxford dictionary labour welfare as “efforts to make life with worth living for a
workmen” chamber’s dictionary defers welfare as “a state of facing (or) doing well
freedom from calamity enjoyment of health, prosperity etc”.

In the words of R.R. Hopkins, welfare is fundamentally as attitude of mind in the part of
management influencing the methods which by management activities are undertaken
obviously the emphasis here is on the “attitude of mind”.

Shri V.V. Giri like other labour leaders also supports the view of Mr. James Todd and
advocates the inclusion of all activities which may develop individual thinking capacity
and emotional stability among the workers. He emphasized that welfare activities should
be considered as duty and not as a measure of charity. In the words of Shri V.V. Giri,
"true welfare work in industry is a question of advancing the workers" physical,
emotional and moral well-being in order to make his life worth living, and not a matter of
throwing crumbs of charity at him".

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Prof. Richardson, on the other hand, includes under it, “any arrangement of working
conditions, organization of social and sports club and establishment of funds by a firm,
which contribute to the worker‟s health and safety, comfort, efficiency, economic
security, education and recreation.” The document which as submitted in the international
social work conference by the Latin American Countries in 1956 held in Munich
describes welfare as “All kinds of services undertaken by the employer to promote the
physical, social cultural and living condition of the employees and their families.”

The International Labour Organization observed in the year 1947 that all those
activities concerned with granting facilities, amenities or services to promote health and
morale of the workers should be named as welfare activities'. The Committee on Labour
Welfare appointed by the Government of India in 1966 has detailed all the provisions and
services that will come under the purview of labour welfare.

The extremely rationale behind giving welfare plans is to make proficient, reliable,
faithful and fulfilled work power for the organization. Besides, the reason for giving such
offices is to improve their work life furthermore to promote their way of life.

The Encyclopedia of Social Sciences has defined labour welfare work as, “The voluntary
efforts of the employers to establish, within the existing industrial system, working and
sometimes living and cultural conditions of the employees beyond what is required by
law, the custom of the country and the conditions of the market.”

According to Proud, welfare work refers to “the efforts on the part of employers to
improve within the existing industrial system, the conditions of employment in their own
factors.”

Dr. Panandikar defines it as, “work for improving the health, safety and general
wellbeing and the minimum standard laid down by labour legislation.” The fact of the
matter is that, “Welfare Services are as varied as life itself and are constantly being
adapted to new circumstances. They form a fluid and developing pattern which changes
as human needs change, as problems of adjustment to social environment arise or with the
changes which are perpetually going on in the structure of society itself. It is no wonder,
therefore, that concepts of industrial welfare vary from country to country and that within

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the same country the significance attached to the term may differ from industry to
industry, and even from undertaking to undertaking.” After studying the above definitions
it may be concluded that the term “labour welfare measures” has been used in a “wide” as
well as “narrow” sense. In the “broader sense”, it may include not only the minimum
statement of hygienic and safety laid down in general labour legislation, but also such
aspects of working life as social insurance schemes, measures for the protection of
women and young workers limitation of hours of work, paid vacations, etc. In the
“narrow sense”, welfare in addition to general physical working conditions is mainly
concerned with the day-today problems of the workers and the social relationships at the
place of work. In some countries, the use of the welfare activities provided is confined to
the workers employed in the undertakings concerned, while in others, the workers‟
families are allowed to share in many of the benefits which are made available.

The Committee of Exports on Welfare Facilities for Industrial Workers convened by

ILO (in 1963) included the following items under the term ‘labour welfare.’

(A) Welfare and Amenities within the Precincts of the Establishment:

1. Laterines and urinals.

2. Washing and bathing facilities.

3. Crenches

4. Rest Shelters and canteens.

5. Arrangements for drinking water.

6. Health services, including occupational safety.

7. Arrangement for prevention of fatigue.

8. Administrative arrangements for the welfare of employees.

9. Uniform and protective clothing.

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10. Shifts allowance

(B) Welfare Outside the Establishment:

1. Maternity benefit

2. Social insurance measures (including gratuity, pension, provident fund and

rehabilitation)

3. Benevolent funds

4. Medical facilities (including programmes for physical fitness and efficiency,

family planning and child welfare).

5. Education facilities

6. Housing facilities

7. Recreational facilities (including sports, cultural activities, library, reading

rooms).

8. Holidays homes and leave travel facilities.

9. Workers’ co-operation, including consumers’ cooperation stores, fair price.

shops, and co-operative credit and thrift socities.

10. Vocational training for dependents of workers.

11. Other programmes for the welfare of women, youth and children.

12. Transport to and from the place of work.

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1.2.2 ON THE BASIS OF THE ABOVE VARIOUS DEFINITIONS, THE BASIC
CHARACTERISTICS OF THE EMPLOYEE WELFARE SCHEMES MAY BE
PUT AS UNDER:-

1. Employee wellbeing is the work which is generally undertaken within the workplace or
in the surrounding area of the undertakings for the welfare of the employees and the
members of their families.

2. The work generally includes those items of welfare, which are over and above what is
provided by statutory provisions or required by the custom of the industry or what the
employees expect as a result of a contract of service from the employees.

3. The objective of providing welfare amenities is to bring about the development of the
whole personality of the employee - his social, psychological, economic, moral, cultural
and intellectual development to make him a good employee, a good citizen and a good
member of the family.

4. These amenities may be provided voluntarily by the progressive and enlightened

entrepreneurs at their own accord out their realization of social responsibility towards
employee, or statutory provisions may compel them to make these facilities available; or
these may be undertaken by the government or trade unions, if they have the necessary
funds for the purpose.

5. “Employee Welfare” is a very broad term, covering social security and such other
activities as medical aid, crèches, canteens, recreation, housing, adult education,
arrangements for the transport of employee to and from the work place.

6. It may be noted that not only intra-mural but also extra-mural, statutory as well as Non-
statutory activities, undertaken by any of the three agencies the employers, trade unions
or the government- for the physical and mental development of a employee, both as a
compensation for wear and tear that he undergoes as a part of the production process and
also to enable him to sustain and improve upon the basic capacity of contribution to the
process of production, “which are all the species of the longer family encompassed by the
term “employee welfare”.

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The advancement of an industry to a big scale relies on upon its dedicated employees. In
such manner, the significance of work welfare was perceived as right on time as 1931,
when the Royal Commission on Labour expressed that the advantages which go under
this classification are of enormous significance to the employee who can't secure
independent from anyone else. The schemes of labour welfare might be considered as
“wise investment” that ought to and frequently does bring a beneficial return in the as
more noteworthy effectiveness.

20 years after the fact (i.e. In 1951), the Planning Commission understood the
significance employee welfare, when it watched that “keeping in mind the end goal to get
the best out of a member of staff within the matter of production, working conditions
need to be enhanced to a huge degree. The employees ought to a minimum of have the
earnings and amenities to keep themselves in a condition of wellbeing and effectiveness.
This is basically an issue of satisfactory nutrition and appropriate housing conditions. The
working condition ought to be like to protect his healthiness and defend him against job-
related risks. The employee ought to likewise be prepared with needed technical training
and a precise level of general education.

 It is partly humanistic for it permits the employees to enjoy a fuller and richer life.
 It is partly economic as a result of it improves the competence of the employee,
increases its ease of use where it is in short supply and stay him contended. hence
it minimizes the encouragement to form or join unions and to resort to strikes.
 The aim is partly civic as it build up a sense of responsibilities and dignity among
the employees and therefore makes them valuable citizens of the country.

1.3 CONCEPT OF EMPLOYEE WELFARE SCHEMES

The main objective of welfare schemes is to provide welfare amenities to have the overall
development of employee in term of his social, psychological, economical, moral,
cultural and intellectual development. Labour Welfare may be viewed as a total concept,
as a social concept, and a relative concept.

 The total concept of welfare is an acceptable state of presence involving mental,

physical, moral and sentimental well-being.

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  The social concept of welfare assumes the welfare of individuals, his family, and
his society. Welfare is termed a relative concept, for it is identified with time and
space.
 The relative concept of welfare implies that welfare is relative at times and place.
It is a dynamic and flexible concept and hence its significance and content be at
variance from time to time, region to region, business to business and country to
country, relying upon the worth system, level of knowledge, social customs, and
degree of industrialization, and common standard of the social- economic progress
of people. Changes in it have an impact on the mode of welfare as well. Welfare is
additionally called a positive idea.

1.3.1 MAJOR PRINCIPELS OF LABOUR WELFARE ARE DESCRIBED

BELOW

 Commodity Concept: Wages were higher when the supply of labour as scarce in
relation to the demand for labour and wages were low, when supply was
substantially in excess of the demand for it.

 Charity Concept: According to this, the human sufferings were the

manifestations of divine justice for the sin committed by the sufferers. It was the
duty of those who were in fortunate positions to assist those who are in need.
Charity was given for the salvation of the donor or out of human sentiments and
with pity towards the distressed.

 Paternalistic Concept: It is a concept that management started to assume a

fatherly and protective attitude towards employees, partially to suppress the
movement of union.

 Machinery Concept: The commodity conception overlooked the fact that the
employer bought and sold, not the actual labour, but the products the labour
produced. He determined the value of labour by the value of the goods and profit.

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  Natural Resource Concept: Some statements began to conceive of labour as
natural resources, which the state should protect. Out of this conception came
child labour laws, restrictions of hours of women workers, workmen’s
compensation and Health and Safety Legislation.

 Democratic Concept: It is also known as citizenship concept. The workers are

considered as citizens of the industry in which they are employed and entitled to a
right to have a voice in terminating the rules and regulations under which they
work. The result of this realization was an industrial democracy with its shop
committee, industrial councils, employee representation plans and so on.

 Partnership Concept: The partnership relationships imply mutual

responsibilities as well as the sharing of the fruits of the joint endeavour.

 Social Welfare Concept: The modern concept of social welfare is based on the
recognition of the rights and worth of the individuals. It is characterized by an
“organized effort through a range of programmes, services and agencies to
promote social well-being and to prevent or alleviate social malfunctioning”.

1.3.2 CLASSIFICATION OF EMPLOYEE WELFARE SCHEMES

The Employee Welfare Schemes might be considered from various edges, for example,

The location, where these services are provided, inside and outside the Institutional
activities;

The nature of services, for example, those concerned with “conditions of occupation”
and “living conditions of work spot.”

The Employee Welfare Schemes termed as ‘statutory’, ‘voluntary’ and ‘mutual’, The
agency which gives these services.

On the premise of the area of welfare activities, Dr. G.M. Broughton labour welfare
work has been characterized in two specific categories namely,

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 (a) Intra-mural activities
(b) Extra-mural activities

It was also supported by the committee of experts on welfare facilities for industrial
workers constituted by ILO in 1963,

(a) Intra mural activities: The employee welfare schemes that are given within the
premises of the business are called intramural activities. These incorporate compensation
for accidents, medical facilities, provision of safety measures for instance sufficient
lighting, fencing and covering of machines, first aid appliances, high-quality design of
the machinery and plant, fire extinguishers, activities relating to improving conditions of
employment, recruitment and discipline and provision of provident fund, pension and
gratuity, etc along with latrines, urinals, rest shelters, arrangements for prevention of
fatigue, health service including occupational safety, administrative arrangements within
a plant to look after welfare, uniforms and protective clothing and shift allowances.

(b) Extra-mural Activities: The employee welfare schemes that are given outside the
premises of the business are named as extra-mural activities or measures. These cover
housing accommodation, indoor and outdoor recreation amenities, entertainment and
games, educational offices for kids and adults, specification of libraries and reading
rooms, social insurance measures as well as cultural activities, holiday, homes and leave
travel facility, employees cooperatives together with consumer’ cooperative stores,
reasonable price shops and cooperatives, thrift and credit societies, vocational training for
needy of employees, other plans for the wellbeing the women, youth & children and
transport to and from the work place.

The other classification of employee welfare schemes is given as under:

(a) Welfare Activities concerned with the Conditions of Employment: In the welfare
activities concerned with the conditions for the management of problems arising out of
hours of work, wages, holidays with pay, rest intervals, sanitations and safety, continuity
of employment, control over the recruitment of female and adolescent labour.

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(b) Welfare Schemes concerned with the Conditions of Employees: All such schemes
of benefits as co-operative societies, legal and medical aid, and housing are included in
the category of activities concerned with “Conditions of workers.”

Some specialists have categorized welfare schemes into three classes given as under:-

(a) Statutory Labour Welfare schemes: It is statutory when such schemes have to be
undertaken in furtherance of the legislation enacted by the government. It includes those
provisions of welfare whose execution is obligatory on the employers seen with a view to
keeping up least measures of wellbeing and security and so forth of the employee. The
Governments act out certain policies under different Acts or laws which must be followed
by the employees.

(b) Voluntary Labour Welfare Measures: It is voluntary when the doings are
undertaken at their own concurrence by the employers or some charitable bodies or when
labour associations embrace such activities for the wellbeing of their employees. This
incorporates all activities which are contributing to the welfare of the employees. These
amenities are given by the employers of their own choice. The idea is obviously
humanitarian; however, when watched independently, it is a sound deal since they boost
the effectiveness of the employees as well as diminishes the probability of differences.

The National Commission on Labour (1966) has ordered different Employee

Welfare Schemes under the following two particular classes given as under:-

(i) Those which must be given, regardless of the size of the establishment or the number
of the persons utiliszed theirs, for example, offices identifying with drinking water, the
clothing, emergency treatment, washing, latrines and urinals; and

(ii) Those which are to be given subject to the business of a determined number of
persons, for example, rest shelter, ambulance, crèche, canteen and so on.

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Encyclopedia of Social Sciences has put into Employee Welfare Schemes in the
following three types:-

(a) Those managing quick working conditions

It incorporates special provisions for adequate ventilation, light, heat, toilet facilities,
lunch rooms, restroom, maximum hours, minimum wages, accident and occupational
disease prevention etc.

(b) Those regarded as less immediate working condition and group interests

It incorporates gardens playgrounds, gyms, club rooms, mutual aid societies, dancing,
music, house organs, vacation with pay, disability and unemployment funds, pensions,
profit-sharing, stock ownership, savings banks, shop committees and workers’ councils,
provisions for conciliation and arbitration.

(c) Those intended to get better community conditions

These are schools, libraries, lectures on domestic sciences, crèche, dispensary and dental
service testing of motion pictures, organizing athletic challenges and picnics and summer
camps, housing, retail stores, kindergartens.

1.4 HISTORICAL DEVELOPMENT OF EMPLOYEE WELFARE

SCHEMES IN INDIA

The genesis of labour welfare activities dates back to 1837 when, following the repeal of
slavery in 1833, the British colonies began importing Indian labour. a few of the
imperative Legislations enacted during these years have been outlined below. These laws
helped in the advancement and implementation of the concept of labour welfare. The
Apprentices Act of 1850 was passed with the aim of helping poor and orphan children
learn various enterprises by apprenticing them to workers.

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In India, Employee welfare schemes were largely influenced by humanitarian principles
and legislation. During the early days of industrial advancement, endeavours towards
workers’ welfare were made to a great extent by social workers, humanitarians, and
different religious pioneers, generally on philanthropic grounds. Prior to the presentation
of welfare and another enactment in India, the states of workers were hopeless.
Exploitation of child labour, extended periods of time off work, awful hygiene, lack of
wellbeing measures and so on, were the general characteristics of the production line life.
The most punctual authoritative methodology could be followed back to the passing of
the Apprentices Act of 1850. This statute was instituted with the goal of helping poor and
stranded kids to learn different trades and crafts. The following legislation was the Fatal
Accidents Act of 1853 which aimed at providing compensation to the families of workers
who lost their lives as a consequence of "significant off-base". Prior endeavours at
enactment in this nation were mostly gone for a regulation of the job.

1.4.1 PRE-INDEPENDENCE ERA

The development to enhance the working state of Indian labour began with the passing of
the first Indian Factories Act in 1881. The miserable conditions in which work worked in
the textile mills in Bombay amid those days, as affirmed by the factory commission of
1875 was the prompt reason for the passing of the Act. Adult labour, although, was not
secured in any way. It was found ailing in various respects. However, it perceived the
right of the government to shield the workers' interests by means of a proper enactment.
Consequently, the Mulock Commission was delegated by the Government of Bombay in
1884 to examine the working the Factories Act of 1881.

The Factories (Amendment) Act 1891 connected to all factories utilizing 50 persons or
more. Legal rules related with better ventilation, cleanliness and for averting congestion
in factories were additionally made. The hours of work for children were diminished to
six every day. The vocation of females between 7.00 pm and 5.00 am was disallowed.
Females were permitted to work for eleven hours in a day with one and a half hours rest.
Certain provisions were additionally made for the welfare and security of the Industrial
workers.

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The revolution of the First World War in 1914 assigns to several new improvements.
During 1914 to 1918 (war years) the quantity of factories and the quantity of persons
utilized wherein expanded. Wages did not keep pace with the increasing prices and
profits. in 1919, The institution of the International Labor Organization (ILO) was
another vital landmark in the history of Labor Welfare Movement in our Country. The
development of AITUC (1920), the first central trade union organization in our nation,
furthermore helped in promoting the reason for welfare advancement.

Another point of reference in the field of labour welfare was come to with the
arrangement of Labor Investigation Committee (Rege. Board of trustees) in 1944. The
committee was requested that explore issues, identifying with wages and house, living,
income and social requirements of workers. It ensured distinctive territories in labor
welfare, for example, educational facilities, industrial diseases, washing and bathing
facilities housing policy, crushes, canteens, rest and recreation, relief in the case of old
age and death, medical aid etc. Without precedent for India, this committee highlighted
the significance of welfare measures for workers in enhancing their social and monetary
life.

1.4.2 POST-INDEPENDENCE ERA

Taking after independence in 1947, the labour welfare movement got new extents. The
huge investments in the business during the various plans prominent an enhanced number
of workers.

It was recognized from the beginning that labour played a positive role in improving
productivity and overcoming industrial tensions. Critical among the advancements were
the Factories Act of 1948 and the generation of 10 Five Year Plans which included labour
welfare activities.

1.4.3 THE PAST AND THE PRESENT

Established by the United Kingdom from the mid-nineteenth century, India originated in
1947 as an independent country. In 1950, India turned into a governmental republic,
consisting of 28 states and 7 union territories, with a parliamentary system of the republic.

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Today it is the world’s most populated democracy (1.14 billion people), has the twelfth
biggest (and one of the quickest developing) economy, the world’s fourth-biggest Gross
Domestic Product (GDP) and a huge labour force of around 517 million.

1.5 - REVIEW OF INDIAN EDUCATION SYSTEM

Education is viewed as vital not just as it grants higher earning capacity on individuals,
but also for its other highly essential advantages. It facilitates one to make better choices
in life; it provides knowledge to understand and to apply the changes taking place in a
society; it also encourages modernization. Moreover, the availability of educated masses
enables the adaptation of novel technologies. Economists have laid importance on
expanding educational opportunities (general, technical and other types) in a nation as it
accelerates the development process.

The Ministry of Human Resource Development has two Departments i.e. Department of
School Education & Literacy and the Department of Higher Education. The vision of the
Department of School Education & Literacy is to guarantee the education of evenhanded
quality for all to completely hold the Nation’s human potential, and the vision of the
Department of Higher Education is to recognize India’s human resource potential to its
fullest in the education area, with impartiality and intensity.

It is in effect progressively understood everywhere throughout the world that monetary

prosperity and gainful efficiencies can be acknowledged with higher scholarly and
professional competencies of human beings. A high-quality human resource base is very
crucial in today’s exceedingly competitive environment. The very idea of development in
the past two decades has progressed in this way which has moved from income and pay
distribution to human resource enlargement. This is the very motive behind the noticeable
move from the welfare approach of education to the privilege based approach, giving the
base for the right to honorable living through its transformative potential to development.

The Twelfth Five Year Plan also places highlighting on the job of education and
expresses that education is the most imperative lever for social, economic and political
transformation. Therefore, recognizing the significance of education in national
advancement, the 12th Five Year Plan lays an unparalleled spotlight on the growth of

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education, on significantly enhancing the quality of education and on guaranteeing that
educational opportunities are accessible to all sections of the society. To address these
difficulties, the Ministry's attempt has been to accomplish ‘Education for All’ with an
inclusive approach.

India has made improvement in terms of expanding the primary education attendance rate
and ever-increasing literacy to around seventy five percent of the population in the 7–10
age groups, by 2011. India's enhanced education structure is regularly referred to as one
of the key contributors to its economic enlargement. A lot of the advancement, mainly in
higher education and scientific research, has been recognized to a range of public
institutions. While enrolment in higher education has expanded consistently over the
previous decade, achieving a Gross Enrolment Ratio of 24% in 2013, there still remains a
noteworthy distance to take up with tertiary education enrolment levels of developed
countries, a challenge that will be compulsory to overcome in order to continue to keep
on reaping a demographic surplus from India's relatively youthful populace.

In Indian education system, a critical number of seats are reserved under governmental
policies regarding minorities in society strategies for the truly impeded Scheduled Castes
and Scheduled Tribes and Other Backwards Classes. In colleges, universities, and
comparative institutions affiliated with the central government, there is a base half of
reservations applicable to these deprived groups; at the state level it can be different.
Maharashtra had 73% reservation in 2014, which is the most noteworthy rate of
reservations in India.

1.5.1 PRE-PRIMARY EDUCATION

A pre-primary phase is the basis of the child’s learning, abilities and behaviour. On
Completion of pre-primary education, a child is sent to the primary phase; however pre-
primary education in India is not a principle right. In country India, pre-primary schools
are once in a while accessible in small towns and urban zone in actuality. Yet, in urban
communities and big towns, there are many familiar players in the Pre-Primary education
area. The demand for the pre-schools is increasing significantly in the smaller towns and
urban communities, yet at the same time just 1% of the population under age 6 is
registered in preschool education. Playgroup (pre-nursery): At play schools, children are

19
showing to a lot of fundamental learning activities that help them to acquire independent
quicker and build up their self improvement qualities like eating the nourishment
themselves, dressing up and maintaining cleanliness. Age bound for admission in a
nursery is 2 to 3 years Nursery: At Nursery level activities help kids open out her/his,
talents empowers them to sharpen up their mental and physical capacities. Age limit for
admission in a nursery is 3 to 4 years.

LKG: It is also entitled as Junior Kindergarten (Jr.KG) stage. Age restraint for admission
in LKG is 4 to 5 years.

UKG: It is also described as Senior Kindergarten (Sr.KG) stage. Age restricts for
confirmation in UKG is 5 to 6 years.

LKG and UKG stages get ready and smooth the progress of children psychologically,
physically, sensitively and socially to take hold of knowledge effortlessly in the later
phases of school and college life. An orderly procedure of preschool education is pursued
in India to communicate information in the most probable manner for better appreciative
of the young children. By taking after a simple and intriguing educational programs,
teachers endeavor hard to make the whole learning process agreeable for the kids.

1.5.2 PRIMARY EDUCATION

The Indian government place accentuation on primary education, additionally alluded to

as basic education, to children matured 6 to 14 years of age. While education laws are set
by the states, period of primary school visit modifies between the Indian states. The
Indian government has likewise prohibited child labour with a specific end goal to
guarantee that the children don't enter dangerous working conditions. Be that as it may,
both free education and the restriction on child labour are hard to authorize because of
financial disparity and social environment. 80% of every recognised schools at the basic
stage are government run or bolstered, making it the biggest supplier of education in the
nation.

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1.5.3 SECONDARY EDUCATION

UGC, NCERT and CBSE orders state qualifying ages for applicants who desire to take
board exams. Those no less than 15 years of age by 30 May for a specified academic year
are qualified to show up for Secondary board exams, and those 17 by the similar date are
suitable to appear for Higher Secondary certificate board exams. It additionally expresses
that upon successful finishing point of Higher Secondary, one can apply to higher
education under UGC control.

1.5.4 INDIAN HIGHER EDUCATION SYSTEM

Higher Education is a non-compulsory educational level. It is also called as tertiary, third

stage or post-secondary education. Higher Education is the education granted by
Universities, Colleges, and other institutions that award academic degrees. Higher
education incorporates both the undergraduate (i.e. college) and the graduate (or
postgraduate) levels. It generally involves certified education and is effectively
vocationally or professionally oriented. Higher education usually includes work towards a
degree-level or foundation degree qualification. Thus a higher education is extremely
essential to the universal improvement of any country.

The Indian Higher education system has demonstrated a valuable development over the
last decade, therefore becoming one of the world’s biggest systems of higher education.
Starting at 2012,

Distance learning is likewise an attribute of the Indian higher education system. The
Government has begun Rashtriya Uchchattar Shiksha Abhiyan to give tactical financial
support to State higher and technical institutions. A sum of 316 state public universities
and 13,024 colleges will be covered under it.

A number of other institutes of elementary research like the Indian Association for the
Cultivation of Science.

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There are 3 central government organizations implicated in quality assurance in
higher education:

The University Grants Commission (UGC)

The National accreditation and Assurance Council (NAAC)

The Association of Indian Universities (AIU)

1.5.5 EDUCATION SYSTEM IN MADHYA PRADESH

Madhya Pradesh (MP) could be a low-income state, with a population of seventy

three million, of which 75% live in rural areas. Whereas average individual growth
indicators in Madhya Pradesh (MP) resemble the national average, rural areas, women,
and Scheduled Caste/Scheduled Tribe (SC/ST) groups face noteworthy difficulties. For
example, the percentage of individuals with an education, higher than the primary level is
36% (national norm is 44%); in urban regions, over forty seventh percentages of the
population had finished at least primary school; in rural regions, less than twenty ninth
has. In rural areas, attainment is mostly poor for underprivileged groups: only 19% of STs
and 20% of women have education levels away from the primary level. Child death rate
and Under-5 year death rate are different by 5-7 additional deaths per one thousand live
births for girls compared to boys, and more than twenty additional deaths per one
thousand live births for STs. Madhya Pradesh has almost 15% of the country’s ST
population.

The structure of Madhya Pradesh (MP) Education is based on the national pattern and is
split into three main classes, besides 3 years of pre-primary education that’s primary,
secondary and Tertiary education.

The schooling education, i.e. Primary and Secondary is supervised by the Directorate of
Public Instruction, Bhopal, Madhya Pradesh. At the district level, a workplace of District
Education Officer and at the block level, the workplace of the Block Education Officer
directs and coordinates schooling. In rural areas, all schools are managed and operated

22
through Panchayat. The Panchayat seems into the requirements of management of
schools, infrastructure, teaching aids etc.

As far as the Higher Education is concerned, it is managed by Department of Higher

Education located in Bhopal.

India’s education system produces millions of graduates annually, much skilled in IT and
engineering. This manpower benefit underpins India’s recent economic progress.
However, masks deep-seated issues in the India’s education system. Although India’s
demographics are usually professed to provide it an edge over different countries’
economies (India will have a young population when other countries have aged
populations), if this advantage is limited to small, highly educated elite, the domestic
political ramifications could be severe. With thirty five p.c of the population below the
age of fifteen, India’s education system faces various challenges. Succeeding
governments have pledged to make bigger expenditures on education to six p.c of GDP.
However, actual expenditure has hovered around four p.c for the previous couple
of years. While, at the pinnacle ending, India’s business schools, Indian Institutes of
Technology (IITs), Indian Institutes of Management (IIMs) and universities turn out
globally competitive graduates, primary and secondary schools, mostly in rural regions,
struggle to search out staff.

TABLE NO. 1.1 INSTITUTES OF HIGHER EDUCATION IN MADHYA

PRADESH

University Establis Place Type Spelization

hed

AISECT University 1985 Raisen Private General

Aks University 2011 Satna Private ------

Atal Bihari Vajpayee Hindi 2011 Bhopal State General

Vishwavidyalaya

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Awadhesh Pratap Singh 1969 Rewa State General
University

Barkatullah University 1970 Bhopal State Genral

Devi Ahilya University 1964 Indore State Genral

Dr. Hari Singh Gour University 1964 Sagar Central Genral

GH Raisoni University -- Chhindwara Private Genral

Indira Gandhi National Tribal 2007 Amarkantak Central Genral

University

ITM University (Gwalior) 1997 Gwalior Private Genral

Jabalpur Engineering College 1947 Jabalpur State Engineering

Jagran Lakecity University 2013 Bhopal Private Genral

Jawaharlal Nehru Agricultural 1964 Jabalpur State Agricultural

University

Jaypee University of 2003 Guna Private Genral

Engineering and Technology

Jiwaji University Gwalior 1964 Gwalior State Genral

Madhya Pradesh Bhoj Open 1991 Bhopal State ------

University Bhopal

Madhya Pradesh Medical ------ Jabalpur State Medical

Science University Jabalpur

Nanaji Deshmukh Veterinary 1948 Jabalpur State Veterinary

Science University Jabalpur

Maharaja Chhatrasal 2015 Chhatarpur State Genral

Bundelkhand University

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Maharishi Mahesh Yogi 1995 Katni State Genral
Vedic Vishwavidyalaya

Maharishi Panini Sanskrit 2008 Ujjain State Sanskrit

Evam Vedic
Vishwavidyalaya

Mahatma Gandhi Chitrakoot 1991 Chitrakoot State Genral

Gramoday University
Computer
Makhanlal Chaturvedi 1991 Bhopal State
science,
National University of
journalism and
Journalism and
communication
Communication

Mandsaur University 2015 Mandsaur Private Genral

National Law Institute 1998 Bhopal Autonomous Law

University

Oriental University 2011 Indore Self-funded General

PK University ------ Shivpuri Private Genral

People's University ------ Bhopal ------ ------

Rajiv Gandhi Technical 1998 Bhopal State Engineering

University

Rajmata Vijayaraje Scindia 2008 Gwalior State Agriculture

Krishi Vishwavidyalaya

Rani Durgavati University 1956 Jabalpur State Genral

RKDF University 2012 Bhopal Private Genral

Sarvepalli Radhakrishnan ------ Bhopal Private Genral

University

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Swami Vivekanand 2012 Sagar Private Genral
University,Madhya Pradesh

Techno Global University ------ Vidisha ----- -------

Vikram University 1957 Ujjain State Genral

Deemed Institutes

Indian Institute of 2005 Jabalpur Deemed Information

Information technology and
Technology, Design design
and Manufacturing,
Jabalpur

Indian Institute of 1997 Gwalior Deemed Information

Information technology
Technology and
Management,
Gwalior

Lakshmibai National 1957 Gwalior Deemed Physical

University of education
Physical Education

1.6 EVOLUTION OF INDIAN EDUCATION POLICY

In India, Takshasila was the primary traced centre of higher education from at least the
fifth century BCE and it is questionable whether it could be respected a university or not.
Nalanda was the oldest university-system of education in the world in the modern sense
of the university. Secular institutions sprung up along with Hindu temples, mutts and
Buddhist religious communities.

26
These organizations conferred sensible education like medicine. Some urban learning
centres turned out to be progressively more among others. These organizations
deliberately bestowed learning and pulled in several outside students to study subject
matter for instance Vedic and Buddhist literature, logic, grammar, and so on Chanakya, a
Brahmin educator, was among the well-known instructors of Takshasila, related to the
establishing of the Mauryan Empire.

Brahmin gurus in olden times offered education by way of gifts, instead of charging
expenses or the acquirement of resources for students or their guardian. Afterward, the
temples additionally progressed toward becoming Traditional Hindu learning served the
requirements of Brahmin families: Brahmin educators would instruct young men to
peruse and compose. Under the Moguls, learning was likewise elitist, supporting the
wealthier instead of those from high-caste surroundings. These previous elitist
propensities were strengthened under British law.

British regal rule carried with it the idea of a present state, a current economy and a
present day education system. The education system was earliest progressed in the three
administrations (Bombay, Calcutta and Madras). By connecting access and development
in government service to academic education, pilgrim administer added to the heritage of
an education system adapted to safeguarding the position and rights of the more
advantaged. In the mid 1900s, the Indian National Congress called for national education,
putting an accentuation on technical and professional training. In 1920 Congress started a
blacklist of government-aided and government-controlled schools and established a few
"national" schools and colleges. These unsuccessful, as the rewards of British-style
education were great to the point that the boycott was mostly overlooked. Local elites
profited from the British education system and finally utilized it eject the colonizers.

Nehru imagined India as a worldly democratic system with a state-drove directive

economy. Education for all and modern advancement was viewed as vital devices to join
a nation separated on the base of prosperity, class and religion, and shaped the
foundations of the insect royal battle. Taking after Independence, school prospectus were
in this way permeated with the twin topics of comprehensiveness and national pride,
setting accentuation on the fact that India’s different communities could live gently next
to each other as one country.

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The legacies of this Nehruvian approach to education are extensive; possibly most
prominent is the entrenchment of the pluralist/secularist point of view into the brains of
the Indian individuals. Subsidized quality higher education through establishments for
example, the IITs and IIMs formed a noteworthy commitment to the Nehruvian vision of
a independent and current Indian state, and they now rank among the best higher
education institution in the world. Moreover, strategies of optimistic bias in education and
employment added the case for right of entry by up to this point unprivileged social
gatherings to quality education. It has been quarreled that whilst access to some
underestimated groups keeps on being constrained, the upward mobility of a small
number of Dalit and tribal family units ensuing from optimistic bias in educational
establishments and state division support has made good examples that assistance vote
based system get by in India.

1.7 PROVISIONS REGARDING EMPLOYEE WELFARE AND

SOCIAL WELFARE IN INDIAN EDUCATIONAL SECTOR

Statutory welfare measures are being covered under the following acts like Employee’s
State Insurance Act 1948, Payment of Gratuity Act 1972, Maternity Benefits Act 1961,
Workmen’s Compensation Act 1923 and Miscellaneous Provisions Act 1952. Non-
Statutory welfare measure includes the following: Accommodation, Insurance,
Medicines, Training, Recreational, Education, Loans and other activities which are being
provided by the employer on a voluntary basis.

Many articles and acts have been passed in the context of the labour laws. Article 42 and
Article 43 states to provide basic working facilities, maternity benefits and ‘Magna Carta’
which is the fundamental rights of Indian workers and involves all the workers into it.
These articles include many acts, legal obligations, constitutions, legal remuneration,
social safety, compensation, health indemnity, long-term disability insurance, pensions
and life insurance plans etc. The emergence of the Employee’s State Insurance Act in
1948 marked the beginning of Social Insurance in India. Factories Act, 1934 has been
established after which many classifications has been made along with the minimum
standards on wages. The objectives of these acts include improving the working
condition, safety, health, working hours, paid leaves, weekly holidays, etc. Apart from all

28
this, there are many acts which have been enacted by the government i.e. Minimum
Wages Act (1948), the Pension Act (1995) etc.

1.7.1 WORKMEN'S COMPENSATION ACT (1923)

This act applies to the employees who are working in factories, manufacturing unit,
mines, railways, and airlines. This act has been altered many times and applies to
employees of all the industry. The central and state government has decided to increase
the reach of this act for the employees who are in a job which is considered to be unsafe.
Employees who are covered under ESI schemes are not liable to get the advantages of the
workmen’s compensation act. The employees, along with their dependents who are
covered under this act will get the compensation from the employers in case of injuries,
death or disablement and other occupational diseases. The compensation will be based on
an extent of the injury, wages paid to the particular employee and the age of the
employee. The compensation for death and disablement is predetermined.

1.7.2 MATERNITY BENEFIT ACT (1961)

This act is being established keeping in view providing consistency during the period of
maternity. This facility is provided to the people who are working in mines, factories, etc.
Employees covered under ESI schemes are not liable to get this benefit. Under this act,
the benefits are given to the employees in cash and leaves are granted to women
employees under the conditions which have been specified under the law.

The service period is about eight days in a period of twelve months. Apart from bonuses,
other benefits should also be given to the women employee’s i.e. crèches, rest period,
medical aid. Such workers cannot be terminated during the period of maternity leave. The
application of this act is for all the women workers in all the different industries.

1.7.3 EMPLOYEES' STATE INSURANCE ACT (1948)

This act applies to the concerns which are non-seasonal and having 20 or more
employees. By the order of the state and central government, the benefits of the act are
being extended to another establishment like hotels, theatres, cinemas, transport and

29
newspaper who are having 20 or more employees. The provision of the act is that it does
not apply to the employees whose salary does not exceed Rs. 6500 per month. The person
under the workmen’s compensation act, maternity benefit act and employee state
insurance act are receiving different benefits.

The Following benefits are being given to the employees under employee state insurance
act:

 In the case of sickness and injury during employment free medical benefits are
provided to the employees.
 Maternity care for women employees for a period of twelve months.
 In the case of injury which is the incurable half wages of the employee is given to
the needy.

This system works from the funds given by employers and employees and undertaken by
central and state governments.

1.7.4 EMPLOYEES' PROVIDENT FUND AND MISCELLANEOUS PROVISIONS

ACT (1952)

Provident fund system is a common act in many government organisations. In the early
stages of the act, it faced opposition from both the employees and the employers, but with
time the resistance from both the sides disappeared. The acceptance of the system by the
people raised a demand from central government for additional room of the
reimbursement for the employees. In the year 1971, the act was known as provident fund
and family pension fund act. The act covers the aspects like old aged, retired, discharged
and death. The act covers each and every establishment having 20 or more employees.

To avail the benefit of this act the employee need to give their continuous service of one
year or 240 working days in a period of twelve months. In the initial stages the provident
fund is paid at 6¼ % of the basic wage and then it is revised to 8¼ % of basic wage in the
industry having fifty or more employees. A committee of people from state government,
central government, workers and employers administer this system.

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1.7.5 EMPLOYEES' PENSION ACT (1995)

This act was entitled for industrial workers; pension is to be given to the employees at
fifty percent of the pay and is payable on retirement or a continuous 33 years of service
and a minimum of ten years of service is required for claiming pension. The pension is
also provided to the families of the deceased employee. Depending upon the salary of the
employee pension will range from Rs. 450 per month to Rs. 2,500 per month. It is being
financed by the employer, employee and some part of it by the employee pension act and
the central government.

1.7.6 PAYMENT OF GRATUITY ACT (1972)

This act applies to the mines, factories, transport, railways, etc. Gratuity is being paid on
the basis of fifteen days payment for a period of one year, maximum of Rs. 10, 00,000. If
the organisation is a seasonal based then gratuity is paid on the basis of seven days wages
for each season. If in case there is a loss because of a wrong act by the employee then the
gratuity will be forfeited by the employee. The employer also needs to bear the
punishment in case the gratuity is not paid to the employee. It is a mandatory and there is
no relation of this system with the revenues of the organization.

1.8 RATIONALE OF THE STUDY

Many studies have been done on employee’s welfare schemes in the Indian education
sector. The rationale behind this study will be to find out the underlined factors of
employee welfare schemes among faculty members in the Private and Public educational
institutes in M.P. Region. And also will be find out the difference between the employee
welfare schemes of private and Public educational Institutes faculty members on the
basis of age, income, gender, experience, education and current working Institution, etc.
and investigate the factors will be contributing of employee welfare schemes between the
faculty members of private and Public educational Institutes in M.P. Region. The
purpose of our study will be determined the factors that lead to employee welfare
schemes and make recommendation to private and Public educational Institutes

31
department of education in order to promote and improve the employee welfare among
faculty members of Private and Public educational institutes in M.P. Region.

In case employees’ welfare schemes where an exploratory research support by the survey
strategy will be conducted to study employee welfare schemes for employees’ private and
public educational institutes and to explore the problems that are associated with this
system. Primary data has been collected through questionnaires and interviews of
Chairmen/ HOD, Deans, teachers and other staff-members will be conducted.

1.9 CONCLUSION

The concept of employee’s welfare schemes is very crucial and even essential in every
walk of life for an organization. The management of people with the help of these welfare
schemes improves both the organization as well as individuals. Overall the organizations
are striving to achieve the goal sets, through the committed, motivated and satisfied
employees. Therefore, employees’ welfare schemes are the greatest importance for any
organization. Continued efforts should be made by the institutions for the sake of
employees, which results in productivity and achieving competitive advantage. The above
chapter is fully based on explaining these terms in a very clear way. This illustrates that
how these employee’s welfare schemes are linked to employees in the working
organization.

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