1. Meaning & definition of Employee Welfare
Employee welfare means “the efforts to
makeꢀlife
worth living for workmen.
According to Todd
“employee welfare means anything done
for the comfort and improvement,
intellectual or social, of the employees
over and above the wages paid
which is not a necessity of the industry.

2. Features of Employee Welfare
ꢀEmployee welfare is a comprehensive term
including various services, facilities and amenities
provided to employees for their betterment.
 The basic purpose in to improve the lot of the
working class.
 Employee welfare is a dynamic concept.
 Employee welfare measures are also known as
fringe benefits and services.
 Welfare measures may be both voluntary and
statutory

3. Objectives of Employee Welfare
Employee welfare is in the interest of the employee, the
employer and the society as a whole. The objectives of
employee welfare are: -
 It helps to improve.
* It improves the loyalty and morale of the employees.
* It reduces labor turnover and absenteeism.
* Welfare measures help to improve the goodwill and
public image of the enterprise.
* It helps to improve industrial relations and industrial
peace.
*It helps to improve employee productivity

4. Agencies of Employee Welfare
 1. Central government: - The central government has made elaborate
provisions for the health, safety and welfare under
Factories Act 1948, and Mines Act These acts provide for
canteens, crèches, rest rooms, shelters etc.
 2. State government: - Government in different states and Union
Territories provide welfare facilities to workers. State government
prescribes rules for the welfare of the workers and ensures
compliance with the provisions under various labor laws.
 3. Employers: - Employers in India in general looked upon welfare
work as fruitless and barren though some of them indeed had done
pioneering work.
 4. Trade unions: - In India, trade unions have done little for the
 welfare of workers. But few sound and strong unions have been the
pioneering in this respect. E.g. the Ahmedabad textiles labor
association and the Mazdoor sabha, Kanpur.
 5. Other agencies: - Some philanthropic, charitable d social service
organizations like: - Seva Sadan society, Y.M.C.A., etc

5. Types of Employee Welfare
 * Intramural: - These are provided within the organization
like: -
1. Canteen,
2. Rest rooms,
3. Crèches,
4. Uniform etc.
 * Extramural: - These are provided outside the
 organization, like: -
 1. Housing,
 2. Education,
3. Child welfare,
4. Leave travel facilities,
5. Interest free loans,
6. Workers cooperative stores,
7. Vocational guidance etc.

6. Types of Employee Welfare
 Statutory welfare work ꢀ
- comprising the legal provisions in
various pieces of labor legislation.  ꢀ
Voluntary welfareꢀwork - includes those activities which are
undertaken by employers for their voluntary work.
Different ways of Social Security Provision in India
 1. Social Insurance-
common fund is established with periodical
contribution from workers out of which all benefits in terms of
cash or kind are paid.The employers & state prove major portion of
finances.Benifits shuch as PF, Group Insurance etc are offered.
 2. Social Assistance-
Benefits are offered to persons of small
means by govt out of its general revenues. Eg- Old age pension

7. Social Security Employee Welfare
 ꢀMedical care
- Sickness benefit in cash
- Old age pension or retirement benefit
- Invalidity pension
- Maternity benefit
- Accident benefit
- Survivor’s benefit
 Art 41 0f Indian constitution says that “ the state shall with in
the limits of its economic capacity & develepment, make
effective provision for security , the right to work, to
education & to public assistance in cases of unemployment,
oldage, sickness & disablement & in other cases of
undeserved want”

8. Role of Management in Employee Welfare
 Organizations provide welfare facilities to their employees to keep
their motivation levels high. The employee welfare schemes can be
classified into two categories viz.ꢀstatutory and non-statutory
welfare schemes.
 The statutory schemes are those schemes that are compulsory to
provide by an organization as compliance to the laws governing
employee health and safety. These include provisions provided in
industrial acts like Factories Act 1948, Dock Workers Act
(safety,health and welfare) 1986, Mines Act 1962.
 The non statutory schemes differ from organization to
organization and from industry to industry

9. Employee Welfare
 STATUTORY WELFARE SCHEMES
 The statutory welfare schemes include the following provisions:
 Drinking Water
 Facilities for sitting
 First aid appliances
 Canteen facilities
 Spittoons
 Lighting
 NON STATUTORY SCHEMES
 Personal Health Care (Regular medical check-ups):ꢀSome of the
companies provide the facility for extensive health check-up
 Flexi-time:ꢀThe main objective of the flextime policy is to provide
opportunity to employees to work with flexible working schedules
 Employee Assistance Programs:ꢀVarious assistant programs are
arranged like external counseling service so that employees or members
of their immediate family can get counseling on various matters.

10. Impact of Welfare on Productivity
 The welfare measures aim at integrating the socio-psychological needs
of employees, the unique requirements of a particular technology, the
structure and processes of the organization and the existing socio-
cultural environment.
 It creates a culture of work commitment in organizations and society
which ensure higher productivity and greater job satisfaction to the
employees.
 Due to the welfare measures, the employees feel that the management
is interested in taking care of the employees that
result in the sincerity, commitment and loyalty of the employees
towards the organization.
 The employees work with full enthusiasm and energetic behavior which
results in the increase in production and ultimately the increased profit.

11. I L O’s Employee Welfare
 ILO has suggested welfare funds on a collective basis to finance
activities in small undertakings.
 It has adopted a number of convections & recommendations
regarding industrial accidents & occupational health.
 New dimension to welfare activities has been provided by ILO’s
contribution to family welfare & population education prog
among industrial workers in organised sector in India
 It has rendered exemplary service to all 3 elements composing it
– govt, employees & workers.
 It has greatly influenced labour legislation, labour welfare , trade
unionism & Industrial Relations in India