Employee Welfare

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					HUMAN RESOURCES

THE CONCEPT OF LABOUR WELFARE
To relieve workers from industrial fatigue and to improve intellectual, cultural and material conditions of living of the workers. The basic features of labor welfare measures are as follows: • Labor welfare includes various facilities, services and amenities provided to workers for improving their health, efficiency, economic betterment and social status. • Welfare measures are in addition to regular wages and other economic benefits available to workers due to legal provisions and collective bargaining. • Labor welfare schemes are flexible and ever-changing. New welfare measures are added to the existing ones from time to time. Welfare measures may be introduced by the employers, government, Labours or by any social or charitable agency. The purpose of labor welfare is to bring about the development of the whole personality of the workers to make a better workforce. The very logic behind providing welfare schemes is to create efficient, healthy, loyal and satisfied labor force for the organization. The purpose of providing such facilities is to make their work life better and also to raise their standard of living. The important benefits of welfare measures can be summarized as follows: They provide better physical and mental health to workers and thus promote a healthy work environment Facilities like housing schemes, medical benefits, and education and recreation facilities for workers’ families help in raising their standards of living. This makes workers to pay more attention towards work and thus increases their productivity. Employers get stable labor force by providing welfare facilities. Workers take active interest in their jobs and work with a feeling of involvement and participation. Labour welfare measures increase the productivity of organization and promote healthy industrial relations thereby maintaining industrial peace. The social evils prevalent among the labors such as substance abuse, etc are reduced to a greater extent by the welfare policies. For example at Bajaj Electricals there are many welfare activities like long service and retirement awards on 14th July every year for Labours, to be categorized into 15 years long service and 25 long service. There is also welfare trust which formed by Bajaj Electricals for providing loan to Labours for housing needs and also for the reimbursement of medical expenses. They have created “social responsibility of business fund” to provide scholarship to employees and children for higher education and also there is emergency assistance in the form of financial assistance to the family in case of death of any Labour in harness. •

“Labour welfare is a comprehensive term including various services, benefits and facilities offered to Labors & by the employers. Through such generous fringe benefits the employer makes life worth living for Labors.” Welfare includes anything that is done for the comfort and improvement of Labors and is provided over and above the wages. Welfare helps in keeping the morale and motivation of the Labors high so as to retain the Labours for longer duration. The welfare measures need not be in monetary terms only but in any kind/forms. Labour welfare includes monitoring of working conditions, creation of industrial harmony through infrastructure for health, industrial relations and insurance against disease, accident and unemployment for the workers and their families. Labour welfare entails all those activities of employer which are directed towards providing the Labours with certain facilities and services in addition to wages or salaries. The very logic behind providing welfare schemes is to create efficient, healthy, loyal and satisfied labor force for the organization. The purpose of providing such facilities is to make their work life better and also to raise their standard of living. The important benefits of welfare measures can be summarized as follows: • They provide better physical and mental health to workers and thus promote a healthy work environment • Facilities like housing schemes, medical benefits, and education and recreation facilities for workers’ families help in raising their standards of living. This makes workers to pay more attention towards work and thus increases their productivity. • Employers get stable labor force by providing welfare facilities. Workers take active interest in their jobs and work with a feeling of involvement and participation. • Labour welfare measures increase the productivity of organization and promote healthy industrial relations thereby maintaining industrial peace. • The social evils prevalent among the labors such as substance abuse, etc are reduced to a greater extent by the welfare policies. Benefits: Welfare includes anything that is done for the comfort and improvement of Labours and is provided over and above the wages. Welfare helps in keeping the morale and motivation of the Labours high so as to retain the Labours for longer duration. The welfare measures need not be in monetary terms only but in any kind/forms. Labour welfare includes monitoring of working conditions, creation of industrial harmony through infrastructure for health, industrial relations and insurance against disease, accident and unemployment for the workers and their families. Labor welfare entails all those activities of employer which are directed towards providing the Labours with certain facilities and services in addition to wages or salaries. Labor welfare has the following objectives: • To provide better life and health to the workers • To make the workers happy and satisfied

Welfare Fund:
Labor welfare refers to all the facilities provided to labor in order to improve their working conditions, provide social security and raise their standard of living. Majority of labor

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THE CONCEPT OF LABOUR WELFARE
Limestone and Dolomite as a duty of excise at such rate not exceeding one rupee per metric tonne of limestone & dolomite. The rate of cess on Limestone and Dolomite is Re.1/- with effect from 27th December 2000. Mica Mines Labor Welfare Fund Act, 1946, provides for levy and collection of cess on all mica exported as duty of Customs not exceeding 6.25% ad valorem. This is 4.5% ad valorem on export with effect from 1st November 1990.

force in India is working in unorganized sector. In order to provide social security to such workers, Government has introduced Labor Welfare Fund to ensure assistance to unorganized labors. Five different welfare funds, which are governed by different legislations, are administered by Ministry of Labor. The purpose of these welfare funds is to provide housing, medical care, educational and recreational facilities to workers employed in beedi industry and noncoal mines and cine workers. The five legislations governing welfare funds are as follows: 1. Labour Welfare Fund Act Rules in Factories Act, 1948 2. The Mica Mines Labor Welfare Fund Act, 1946 3. The Limestone and Dolomite Mines Labor Welfare Fund Act, 1972 4. The Iron Ore, Manganese Ore and Chrome Ore Mines Labor Welfare Fund Act, 1976 5. The Cine Workers’ Welfare Fund Act, 1981 Schemes under welfare funds provide assistance with respective to the following: • Public health and sanitation • Housing • Recreational (including standard of living) • Social security • Educational facilities • Water supply • Transportation • Medical facilities (prevention of diseases) • Social security • Group Insurance Schemes for Beedi and Cine workers • Social Security under Mine Workers Welfare Fund • Family welfare The welfare funds are raised by government by imposing cess on manufactured beedis, feature films, export of mica, consumption of limestone & dolomite and consumption and export of iron ore, manganese ore & chrome ore. An explanation of the cess levied under different legislations is given below: • Beedi Workers Welfare Cess Act, 1976 provides for levy of cess by way of excise duty on manufactured beedis from Re.1/- to Rs.5/- per thousand manufactured beedis. This is presently Rs 2 per 1000 beedis with effect from 28th June 2000. • The Cine Workers Welfare Cess Act, 1981 provides for duty of cess, at such rate not being less than one thousand rupees and not exceeding twenty thousand rupees, on every feature film submitted to the Chairman, Central Board of Film Certification. This is Rs 20000 per feature film of Hindi and English and for regional films it is Rs 10000 per film with effect from 20th April 2000. • The Iron Ore, Manganese Ore & Chrome Ore Mines Labor Welfare Cess Act, 1976 provides for levy and collection of cess on Iron Ore, Manganese Ore & Chrome Ore between 50p to Re.1/-, Re.1/- to Rs.6/and Rs.3/- to Rs.6/- respectively. • The Limestone and Mines Labor Welfare Fund Act, 1972 provides for the levy and collection of cess on

•

Welfare Schemes:
Organizations provide welfare facilities to their Labours to keep their motivation levels high. The Labour 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 Labour 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: At all the working places safe hygienic drinking water should be provided. • Facilities for sitting: In every organization, especially factories, suitable seating arrangements are to be provided. • First aid appliances: First aid appliances are to be provided and should be readily assessable so that in case of any minor accident initial medication can be provided to the needed Labour. • Latrines and Urinals: A sufficient number of latrines and urinals are to be provided in the office and factory premises and are also to be maintained in a neat and clean condition. • Canteen facilities: Cafeteria or canteens are to be provided by the employer so as to provide hygienic and nutritious food to the Labours. • Spittoons: In every work place, such as ware houses, store places, in the dock area and office premises spittoons are to be provided in convenient places and some are to be maintained in a hygienic condition. • Lighting: Proper and sufficient lights are to be provided for Labours so that they can work safely during the night shifts. • Washing places: Adequate washing places such as bathrooms, wash basins with tap and tap on the stand pipe are provided in the port area in the vicinity of the work places. • Changing rooms: Adequate changing rooms are to be provided for workers to change their cloth in the factory area and office premises. Adequate lockers are also provided to the workers to keep their clothes and belongings.

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THE CONCEPT OF LABOUR WELFARE
*Subsidized canteen facilities *Entertainment (including sports & games) *Medical facilities for the self and family (now-a-days group insurance plays a vital role instead of Medical facilities at the factory premises itself) • *Educational aids to the wards of the workmen • *Transportation facilities (not necessarily company bus facility - even TA will do) • *Interest-free loan facilities or low interest loans • *Freebies during festivals and/or Founder's Day etc. Besides the normal Health & Safety, Staff Events, Professional Development programs etc., the following can be included in the Welfare Plan or Policy. • Vacation • Child Care • Holidays • Workers' Compensation Insurance • Sick or Personal Leave • Voting • Jury Duty • Military Service • Bereavement Leave • Relocation of Current or New Employees • Temporary Assignment Allowance • Professional Memberships • Health Insurance • Health Benefits Continuation (COBRA) • Short-term Disability Insurance • Long-term Disability Insurance • Life Insurance • Employee Assistance Program • Flexible Spending Account • Employee-Incurred Expenses and Reimbursement • Mileage Reimbursement • Travel Reimbursement • Required Management Approval • Educational Assistance • Parking • Kitchen — Break Room • Employee Recognition • Matching Gifts Plan Of course, there are quite a lot you can be done. It all depends on priorities/constraints/Policies and the budget for the same. Some of the following: 1. A crèche facility for working mothers. 2. Work from home for expecting mothers 3. Flexi timing for applicable staff 4. Arranging lectures from eminent doctors on certain common occupational hazards and preventing the same. For eg if someone is constantly on the phone (e.g. front office people) they tend to develop certain ailments. You can arrange how to prevent the same. Same is true for people using computers constantly (like you and me). Prevention of RSI etc. 5. Conducting yoga/aerobic classes within the campus (if space available) or tie up with a local health club. • • •

Rest rooms: Adequate numbers of restrooms are provided to the workers with provisions of water supply, wash basins, toilets, bathrooms, etc. NON STATUTORY SCHEMES Many non statutory welfare schemes may include the following 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 Labours to work with flexible working schedules. Flexible work schedules are initiated by Labours and approved by management to meet business commitments while supporting Labour personal life needs • Labour Assistance Programs: Various assistant programs are arranged like external counseling service so that Labours or members of their immediate family can get counseling on various matters. • Harassment Policy: To protect an Labour from harassments of any kind, guidelines are provided for proper action and also for protecting the aggrieved Labour. • Maternity & Adoption Leave – Labours 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 Labours for expenses related to hospitalization due to illness, disease or injury or pregnancy. • Labour Referral Scheme: In several companies Labour referral scheme is implemented to encourage Labours to refer friends and relatives for employment in the organization. Labour Welfare Actvities: Before going for any Welfare activities, you must check whether it comes under company expenses for the same and it should not be overburdened. Some of the welfare activities you may organize is below• Birthday Celebration with cake cutting- You may celebrate B'day Party at last weekend of all whose B'day was there in that month. Arrange a big cake according to strength of your Labours. • Labour of Month- During this B'day celebration, even you may celebrate the Labour of The Month Award also. It will be awarded on the basis of performance of that individual in that particular month. • Arrange some Training programs, related with their personality developments, sales skill development, Communication classes. • Celebrate Friendship Day... Moreover if your Labours are not covered under any Health Schemes, then you may ask them to enroll them with some Medical facilities, being provided by so many Insurance Companies. It is available at a very low premium. So company may also help to an extent. Indian workmen view welfare as below:-

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THE CONCEPT OF LABOUR WELFARE
8. Participation & involvement. 9. Relations with peer group (Team Spirit). 10. Overall Attitude & Behavior. Employee Welfare Measures:The disbursed scopes, items and ratios of employees' welfare fund The disbursed scopes, items and ratios of the employees' welfare fund are given in accordance with Paragraph 1, Article 7 of Employees' Welfare Fund Act as follows: The disbursed scopes and items: • Welfare benefits: Wedding, funeral, bearing benefits for injury and disease, emergency aid and loan, disaster assistance etc. • Educational grants: Subsidies for employees' advanced study and educational fees for their children etc. • Recreation activities: Culture and health activities, group activities, tourism and recreation facilities etc. • Other welfare items: Festival grants, interests subsidy for the housing loan, employees' deposit insurance, purchasing house with employee deposit, child-care and spouse dependants subsidies, retired employees' benefits and other benefits etc. The disbursed ratios of employees' welfare fund: All above kinds of disbursed ratios shall not be limited, except the total amount of all kinds of disbursed ratios shall not exceed 100% of the amount of the employees' welfare income of current year. The employees' welfare fund shall be issued to the employees by cash, based on the principle of directness and universality. In addition, the issued fund shall not exceed 40% of the amount of the employee welfare income of the current year. Employees' welfare fund capital All factories, mines in the public and private sectors, or other enterprise organizations shall set-aside and allocate the first employees' welfare fund, which shall be allocated one time enough in accordance with the amount of paid-in capital, not allocated by years. The amount of first paid-in capital shall not be less than 1/4 of the total registered capital as ruled by the Company Act in case of reestablishment. The disbursed scopes, items and ratios of cumulative employees' welfare fund In accordance with the Paragraph 1, Article 7 of Employees’ Welfare Funds Act, the disbursed scopes, items and ratios of cumulative employees' welfare fund are given as follows. If the cumulative employees' welfare fund in past years is within 50%, the securities shall be purchased. The purchase of disbursed securities and dispositions shall be conducted in accordance with the following regulations:

6. Sponsoring for Gymnasium memberships or alternately having an in-house GYM. 7. Encouraging employees to be part of some sporting teams (Your Company’s team) like Cricket or volleyball or football and allowing them to participate in intercompany competitions. This will also build branding for your company. 8. Conducting quarterly/annually get together of the respective divisions or the whole company along with their family members to bond the family with the organization. 9. Sponsoring team outings/lunches for celebrating important milestones to build team spirit. 10. Giving a Gift vouchers/Sponsoring dinners on important personal occasions/celebrations like birthdays, wedding anniversary, birth of a new child into the family etc. 11. Granting paternity leaves (Most of them have 5 days) for employees (Some companies don't have) when a child is born. 12. Facilitating a Concierge services for routine chores like credit card payments, bill payments, railway/flight ticket bookings, bus ticket bookings, tax payments, insurance payments, mobile bill payments, movie ticket bookings, Gas bookings, etc for busy busy people. You don't have to pay the charges but you can set up a desk at your office. Let the employee pay the service charges to them most companies do these work for a small fee say 5 Rs per transaction. Etc. Basically by facilitating this you are taking the pains away from the employee and allow him focus on his job. 13. If your staff is staying in far off places may be you can provide a company transport (by deducting applicable charges) on a no profit no loss basis. I feel driving is pain in most cities. 14. Since you are a FMCG company, you can give your employees some kind of rebate/discount on items purchased on your own products. For senior management, you could consider providing housing loan subsidy (Part of the interest is paid by company). 15. In addition to PF and gratuity, for senior people, you could provide superannuation contributions (LIC has a scheme) for retaining top executives. The Good One: Employee of the Month: For motivating the employees by recognizing, appreciating & rewarding them for their good performance, the concept of "Employee of the Month" was introduced from September 2006. Parameters for Selections of Employee of the Month are given below: 1. Attendance, regularity & punctuality. 2. Knowledge of the work, methods & processes. 3. Promptness in timely completion of work. 4. Ability to take initiative/ Proactive. 5. Ability to do hard work and excel in profession. 6. Creative & innovative. 7. Sincerity & Commitment (Sense of Responsibility).

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HUMAN RESOURCES

THE CONCEPT OF LABOUR WELFARE
• Welfare facilities

The employees' welfare committee of institutions shall

obtain the agreement of half of presented commissioners; Article 3 The Committee of factories, mines, and other in which 2/3 of all commissioners shall attend while business entities shall appoint from seven to a maximum of purchase the securities. And the disbursement shall be dealt with the same way. The purchase of securities of cumulative employee welfare fund is limited: • Government bond. • Treasury. • Transferable fixed deposit. • Bank acceptance. • Commercial issued paper issued by a bank or financial institution. • Financial bond issued by a financial institution. twenty-one members. The Committee of business entities having one thousand or more employees may appoint up to a maximum of thirty-one members. Article 4 The Committee may appoint one of the committee members as the ex officio member. All other members are

determined as described below: • The method used to elect committee members shall be determined by the business entity and the union separately. The elected committee members of union should elect at least two-thirds of the committee members. For business entities without a union, the committee The preceding Paragraph of issued securities’ companies in • members are determined by the business entity and the items 4-6 of Subsection 2 must be ranked in the certain welfare committee. In this case, the method used to credited level that recognized by the Department of select members is determined by the business entity. Finance. Labor representatives are elected by all employees. Limits of any interested persons who purchased the Substitute members should be also be elected at the same securities of cumulative employee welfare fund: time. The number of substitute members shall not exceed The employees' welfare fund shall not purchase the issued one-third of all members. securities by the business entities or the relevant interested Article 5 Two or more business entities may jointly form one companies. committee for the convenience, with members elected The called interested companies refer to one of following according to the previous two articles. circumstances: Article 6 The Committee has one chairperson in charge of • Business entities with the relation specified in Section 1, committee affairs. A deputy chairperson may be appointed. Chapter 6 of the Company Act. • The company of the interested company is that the Both are elected by members. director, supervisor or others who hold more than 50% Committee memberships are positions without pay, with stocks of this business entity. terms ranging from one to three years. The term begins • The company of the interested company is that the from the day they assume office. This day shall not be director, supervisor or managerial officers and directors, supervisors, managerial officers of other company or beyond the fourteenth day from the day of the last term shareholder who hold more than 10% issued stock of expired. this business entity is the same person, or with the spouse relationship. The director or supervisor is the legal person, his/her representative or assigned representative exercises the duty that shall be followed the regulations of the original directors or supervisor. Rules Governing Organization of Employees’ Welfare Committee Article 1 The Rules have been prescribed pursuant to Article 5 of Employees’ Welfare Fund Act. Article 2 The Rules shall include the following: • Name of the Committee • Address of the Committee • Organization of the Committee and handling of affairs • Number of members and term of Committee • Appointment, dismissal and recall of, and resignation by members • Norms of meetings • Safekeeping and withdrawal of the Fund No more than two-thirds of members shall rerun and be reelected. The ex officio member’s term is not limited. Article 7 After new chairperson takes over, the Committee shall complete transferring documents regarding the Fund and other assets within ten days following the change of chairperson. For failure to complete the transfer within ten days for legitimate reasons, the new chairperson shall submit a report to competent authorities with reasons included. Article 8 In case the chairperson cannot perform duties for some reason, the deputy (chairperson) shall take over. A chairperson shall be elected if there is no deputy. When the number of members falls below half of required number, the original Committee shall be notified to elect new members to make up for the difference.

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HUMAN RESOURCES

THE CONCEPT OF LABOUR WELFARE
Daycare or kindergarten Laundry Library Recreation Supply of articles of daily use Other services regarding employee welfare

Article 9 The Committee shall hold election of members • • thirty days before existing members’ term expires. ers’ • Competent authorities shall notify committees having not • held such election fifteen days before expiry to hold the • election within fifteen days. For committees that fail to • hold such election. necessary, an ad hoc meeting shall be called. Member meetings are called by the chairperson. following written appeal by one third of members. rd

comply, competent authorities may designate personnel to Recipients of above services are limited to the business entity’s employees and their dependants. The Cooperative Fund for its operation. Article 17 The Committee may have one chief executive Several staff members under the chief executive are Article 10 The Committee meets every three months. When shall be self-sufficient without siphoning monies from the sufficient

Chairperson shall call an ad hoc meeting within seven days instated to assist the chairperson in running daily business. For chairperson failing to call a periodic or ad hoc meeting grouped to help run Committee business. for no legitimate reasons, a report may be filed with The Cooperative is headed by one person, in charge of the competent authorities after being approved by one third of Cooperative, with several staff members under him/her. members. Competent authorities may designate one of the Chairperson of the Committee shall request the business members to call the meeting. information to competent authorities for review: • Rules and regulations • Rosters of members and staff • Address of the Committee • Date on which the Committee was established In the event of change(s) to the first three items above, a e report shall be presented to competent authorities. entity to which it belongs to elect employees for above hundred dred or more employees may have one to five Article 11 The Committee shall submit the following positions, working part-time. Business entities having five time. employees taking up these positions full-time full Article 18 For unions organized by workers who have no definite employers, their welfare committee members shall be elected according to the rules drawn up by the union, to uni be carried out in accordance with the Rules.

Article 19 The Rules take effect from the day they are Article 12 Responsibilities of the Committee are as follow: • Review, promotion, and supervision of employees’ published. welfare undertakings • Planning, custody, and withdrawal of the Fund • Distribution, audit, and revenues and expenditures of the funds of employee welfare undertakings • Other issues related to employee welfare Article 13 The Committee shall draw up plans and prepare budgets for the next year within one month before end of n the year, to be passed by member meeting resolutions and submitted to competent authorities for review. Within three months following end of year, the Committee shall submit a report on execution of plans and budgets to competent authorities for review, with a copy sent to the business entity to which it belongs. Article 14 The Committee may set up an employee welfare cooperative. Article 15 Prior to setting up employee welfare cooperative, relevant information shall be submitted to competent authorities for registration and supervision. Article 16 The Cooperative shall provide the following services based on employee needs and funding: • Canteen • Dormitory or housing • Haircut

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Description: A clear guide on Labour / Employee Welfare in Organization.