Labour Welfare in India

Labour Welfare and Social Security

A) Labour Welfare

1) Philosophy of Labour Welfare

2) Statutory Welfare Provisions
3) Voluntary Welfare Provisions
4) Labour Welfare Funds
5) Industrial Safety
6) Industrial Health
7) Industrial Hygiene
8) Social Responsibilities of Industry and Trade Unions

B) Social Security

1) Apprenticeship Training
2) The Workmen’s Compensation Act, 1923
3) The Employee’s State Insurance Act, 1948
4) The Employee’s Provident Funds and Miscellaneous Provisions Act, 1952
5) The Maternity Benefit Act, 1961
6) The Payment of Gratuity Act, 1972
Philosophy of Labour Welfare

 Definition

Oxford: “Efforts to make life worth living for workmen”

“Anything done for the intellectual, physical, moral and economic betterment of the workers, whether by
employers, by Government or by other agencies, over and above what is laid down by law or what is normally
expected as part of the contractual benefits for which the workers may have bargained.”

“It covers all the efforts which employers make for the benefit of their employees, over and above the minimum
standards of working conditions fixed by Factories Act and over and above the provisions of the social legislations
providing against accident, old age, unemployment and sickness.”

 Scope

a) Welfare amenities within the precincts of the establishment: Latrines, urinals, washing and bathing facilities,
crèches, rest shelters and canteens, drinking water, uniform, protective clothing and shift allowances

b) Welfare amenities outside the establishment: Maternity Benefits, social insurance measures like gratuity,
pension, provident fund and rehabilitation, medical facilities, education facilities

 Aims and Objective

1) To win over employees’ loyalty and comate trade unionism

2) To build stable labour force, to reduce labour turnover and absenteeism and to promote better relations with
employees
3) To develop greater efficiency and output form works
4) To save from heavy taxes
5) To create an atmosphere of good-will between labour and management and also between management and
the public

 Principles

1) Should be pervade the entire hierarchy of an organization

2) Should not bargain labour welfare as a substitute for wages or monetary incentives
3) Participation of union and works in formulating and implementing labour welfare programs
4) Periodic assessment or evaluation of welfare measures and necessary timely improvements

Statutory Welfare Provisions

 First Aid

1) Obligation of employer to provide and maintain first-aid box and medical appliances
2) No. of boxes: Not less than one for every 150 workers

3) Should be kept in charge of a separate responsible person who holds a certificate in first aid treatment
recognized by State government

4) In case of more than 500 workers, an ambulance room of the prescribed size and containing prescribed
equipment is to be provided under the charge of qualified medical and nursing staff,

 Shelters, Rest Rooms and Lunch Rooms

1) Obligation of employer employing 150 workers to provide adequate and suitable shelters or rest rooms and
lunch room with provision of drinking water.

2) For mining industry, it must be provided for mine having more than 50 workers.

3) Separate rest room for women

 Canteen

1) Obligation of employer employing 250 workers to provide canteen as per approved plan by Factory
Inspections having dining hall, kitchen, store rook, pantry and washing place.

2) Dining Hall must have accommodation for 35% of workmen

3) There are 3 types of canteens

a) Administered directly by employer

b) Run by Contractors

c) Run on cooperative basis by employees or union

 Crèche

1) Setting up of crèches in every factory wherein more than 30 women workers are employers for the use of
children under the age of 6 years

2) The rooms must be adequately lighted and ventilated and under the charge of women trained in the care of
children and infants.

3) It should be conveniently accessible to the mothers of the children.

4) The mother of a child should be allowed two intervals of at least 15 minutes each to feed the child.

5) For children above 2 years, wholesome refreshment be provided by employers.

  Welfare Officer

1) Employer should appoint welfare officer having more than 500 workers in every factory.

2) Qualification:

a) Degree or diploma in social science or labour welfare or social work

b) Knowledge of local language

3) Broad duties of Welfare officer

i) Supervision of safety, health and welfare programs

ii) Counseling workers in personal, family problems and in adjusting to work environment

iii) Advising management in formulating labour welfare policies and training programs

iv) Maintaining liaison with workers, management and with other outside agencies

v) Suggesting measures for promotion of harmonious industrial relations and general well-being of the
workers by adopting various measures in plant for the redressal of grievances,

Voluntary Welfare Provisions

 Educational Facilities

 Medical Facilities

 Transport Facilities

 Recreational Facilities

 Housing Facilities

 Consumer Cooperative Societies

Labour Welfare Fund

 Centre-wise Labour Welfare Fund

1) The Coal Mines Labour Welfare Fund

2) The Mica Mines Labour Welfare Fund

3) The Iron Ore and Manganese Ore Mines Labour Welfare Fund

4) Beedi Workers Welfare Fund

 State-wise Labour Welfare Fund

1) Maharashtra Labour Welfare Fund

2) Gujarat Labour Welfare Fund

3) Punjab Labour Welfare Fund

4) Assam Tea Plantation Employees’ Welfare Fund

5) U.P. (Sugar & Power Alcohol) Industries Labour Welfare and Development Fund

6) Kerala Toddy Workers’ Welfare Fund

 Activities conducted under Fund

1) Recreation: Entertainment such as drama, cinema, cultural program; Games and sports and physical Cultures

2) Community and Social Education: Reading rooms, library, study facility, exhibitions, book bank, scholarship
facility

3) Health: Family planning, child welfare and health education

4) Special Programs: For Women such as vocational classes, employment oriented training program; For children
such as Shishu mandir, outing, mid day meal
 Industrial Safety

 Statutory Safety Provisions

1) Properly fencing of machinery

2) Young persons are not to be employed on dangerous or moving machines.

3) Prohibition of employment of women and children near cotton openers

4) Hoists and lists are to be of good mechanical construction and to be thoroughly examined by a competent person at least in every
period of 6 months

5) Special care is to be taken for protection of eyes from particles or fragments thrown off in the course of manufacturing

6) Precautions in case of fire

 Safety Officer

1) Appointment of Safety Officer wherein more than 1000 workers are employer or state government directs to appoint safety
officer

2) Role of Safety Officer:

a) To formulate safety procedure, safety policy and assess critically the safety requirements

b) To act as Chairman or secretary on the Works Safety Committees

c) To administer safety suggestion schemes

d) To organize safety education, training and publicity

e) To investigate the causes of industrial injuries and circumstances leading to accidents

f) To compile and circulate accident statistics

g) To liaison with government agencies like Inspector of Factories

 National Safety Council

1) Set up in March, 1966 as a voluntary, non-profit making body representing the Government, Employees and Trade Union
representative

2) Services:

a) Publication services like Industrial Safety Chronicles, Technical Publication

b) Safety Training Services

c) Technical Information Services: name and addresses of manufacturers, suppliers of personal protective equipments and clothing,
machinery guards

d) Educational services: through posters, mini posters, safety calendars, national safety day, national contest
Industrial Health

 Statutory Health Provisions

a) Cleanliness

b) Disposal of wastes and effluents

c) Ventilation and temperature

d) Dust and fumes

e) Artificial Humidification

f) Overcrowding

g) Lighting

h) Drinking water

i) Latrines and urinals

j) Spittoons

 Industrial Medical Officer

1) Not compulsory and can be appointed on part time basis

2) He should have good experience in general practice, some special knowledge of the treatment of injuries
and an interest in occupational hazards.

3) Responsibilities

a) Examination of fresh recruits for employment

b) Immediate treatment of medical and surgical emergencies

c) Examination of persons returning to work after illness

d) Advising management regarding general factory hygiene, health of workers, occurrence of hazards,
factory legislation

e) Medical supervision of canteen

f) Maintenance of case history and medical report of each workers

Industrial Hygiene

 Occupational Hazards

1) Physical Hazards: Heat, Light, Noise and Vibration, Ultra Violet Radiation and Ionizing Radiation

2) Chemical Hazards: machine oils, rubber, acids, alkalies and limes

3) Biological Hazards

4) Mechanical Hazards

5) Psychological Hazards

 Occupational Diseases

1) Lead poisoning

2) Phosphorus poisoning

3) Mercury poisoning

4) Manganese poisoning

5) Anthrax

6) Silicosis

7) Asbestosis

8) Coal Miners’ Pneumoconiosis

9) Telegraphists Cramps

10) Caisson Disease

11) Byssionosts

 Certifying Surgeon

1) Appointment by State Government

2) Employees engaged in dangerous operations are required to be examined by Certifying Surgeons once in a year

3) Duties:

a) Examination and certification of young persons

b) Examination of persons engaged in factories which have dangerous occupations or processes as may be
prescribed

c) Exercising medical supervision

 Social Responsibilities of Industry and Trade Union

 Social Responsibility of Industry

A. Responsibilities to the Government:

1) Paying full taxes;

2) Active participation in Governments policies and programmes regarding uplift and development of rural and
economically backward areas.

3) Helping the government in its fight against inflation by active efforts aimed at industrial growth and price stability.

B. Responsibilities to shareholders:

1) Ensuring adequate returns to the shareholders on their investments

2) Vindication of the trust placed by shareholders on industry by making safe, dicreet and proper use of their money
by aiming for increasing returns to them through expansion/diversification/increased profit.

C. Responsibilities to Employees:

1) Adequate compensation for their services

2) Employees welfare schemes and amenities such as housing, medical attention, education

3) Opportunities for advancement in their chosen field and

4) Good working conditions

D. Responsibilities to Customers/ consumers:

1) Supply of quality goods at reasonable prices

2) Reliable after-sales-service

3) Co-operation with consumer’s organizations and

4) Desisting from unfair marketing and advertising practices

E. Responsibilities to public at large

1) The immediate community around the enterprise including developing and maintaining resources, maintaining and improving
the environment, etc; and

2) The general public including price stability, creation of employment and self employment opportunities, aid (financial and
participative) in times of natural calamities, etc.

F. Responsibilities to Business and industry itself

1) Survival and development (expansions and diversification) of the enterprise through adequate ploughing back of profits

2) Development of requisite infra-structure essential to development and rapid industrialization

3) Active encouragement (not just verbal) for development of ancillary industries;

4) Desisting from practices which threaten the existence and functioning of competitors such as under-pricing, package-deal
marketing, etc.

5) Research and development activities for developing indigenous technology to decrease reliance on foreign technology and

6) Expansion of the market, especially through export-oriented marketing strategies so as to ensure industrial growth.

 Social Responsibility of Trade Union

1) To educate the rank and file workers so that the traditional agitational role be gradually transformed into one of understanding
and co-operation

2) To keep the well-being and progress of the society constantly before them by way of refraining from unnecessary strikes, rok
stoppages, go-slow, intimidation, etc.

3) To protect the interest of the consumer which is usually lost sight of in bipartite agreements reached between the parties

4) To discharge their role in the success of the schemes for planned economic development of the country, maximizing
production and distribution in an equitable manner. According to the first plan document, “for the successful execution of the
plan, the co-operation of the trade unions and employers is indispensable” . the second plan document also emphasized that “
a strong trade union movement is necessary both for safeguarding the interests of labour and for realizing the targets of
production”.

5) To adapt themselves to changing social needs and to rise above divisive forces of caste religion and language and to help in
promoting national, social and emotional integration at all levels;

6) To instill in their members a sense of responsibility towards industry and the community. Further they should seek to
harmonize the sectional goals of their members with the community interest in the larger good of the society

7) To organize the unorganized sections of the working class in the rural and urban areas and help these groups in organizing
themselves. They should involve themselves more in the upliftment of those below the poverty line, rather than strive for
achieving more comforts for the privileged section of the organized labour

8) To encourage capital formation by supporting small savings schemes

9) To support modernization of equipment rationalization programmes, etc.

10) To work for a stable social order by establishing industrial democracy and social justice and

11) To help in holding the price line by keeping a vigilant watch on prices.

The Apprentices Act, 1961

 Applicability:

It is a statutory obligation of every industry/establishment having training facilities according to syllabus in a

designated trade under the Apprentices Act, 1961 to train a number of apprentices according to ratio of the trade
in their establishment.

Major Compliance:

1) General Obligations:
a) To provide the apprentice with training in his trade in accordance with Act and rules.
b) To ensure that a qualified person is placed in charge of the training.
c) To carry out obligation under the contract.
2) Registration of contract of apprenticeship:
To send the apprenticeship advisor the contract of apprenticeship within 3 months of date on which it was
signed.

3) Payment to apprentice:
To pay to every apprentice during the period of apprenticeship such stipend at a rate prescribed under the
Act.

4) Working hours for apprentice:

a) Total number of hour: 42 to 48 hours per week.
b) Trade apprentice undergoing basic training: 42 hours.
c) Trade apprentice undergoing 2nd year: 42 to 45 hours.
d) Trade apprentice undergoing 3rd and subsequent years: As per the workers in the trade in the same
establishment.
e) No trade apprentice shall be engaged between the hours of 10 p.m. to 5 p.m. without the permission
of Apprenticeship Advisor.
f) Graduate or technician apprentice: Normal hours of work of the dept.
5) Health, welfare and safety of apprentice: as per Factories Act.
6) Compensation for injury: as per Workmen Compensation Act.
7) Compensation for termination of apprenticeship: 6 months’ last drawn stipend by both parties

Note: Apprentices advisors (Inspector) – Labour Minister – Sion Chunabbhati opp. Priyadarshani Bldg in Mumbai.

The Contract Labour (Regulation & Abolition) Act, 1970

Applicability:

Applicable to: 1) every establishment in which 20 or more workmen are employed or were employed on any day of
the preceding twelve months as contract labour.

2) every contractor who employs or who employed on any day of the preceding twelve
months twenty or more workman.

Not applicable to: Establishment which carry on work of a casual nature occasionally.

Effect of non-registration: The principal employer cannot employ contract labour in establishment.

Major Compliance:

1) It is obligatory on every contractor not to undertake or execute any work through contract labour without
obtaining a valid license from the licensing officer.
2) Obligation to provide certain amenities:
A) Provision of canteens
B) Rest Rooms
C) Drinking water and other facilities like latrines and urinals
D) First-aid facilities
E) Crèches
3) It is obligatory on principal employer to see that wages of the workers are paid every month on a fixed date and
time and on termination of their employment before the expiry of 2 nd working day after termination.

Maintenance of Records:

Form No. XXIV Half yearly Return in duplicate within 30 days by contractor

Register Particulars

Form No. XII Register of Contractor - Maintained by Principal employer for each establishment

Form No. XIII Maintained by Contractor for each establishment

Form No. XIV Contractor to issue an employment card to each worker within 3 days of employment

Form No. XV A service certificate in case of termination of wokman

XVI-A muster roll, XVII-Register of wages, XX-deduction for damange, XXI – Register of fines, XXII- Register of advances,
XXIII-Register of overtime

Notes: Company has to register every year

1) In a year labour should not work above 240 workig days

2) Every 80 days employer should break labour service – need to update every 80 days with the contractor
3) Contractor should pay minimum wages to the labour

The Employee’s Provident Fund & Miscellaneous Provisions Act,1952

Applicability:

1) Applicable to every establishment in which 20 or more persons are employed.

2) Every employee drawing wages and DA upto Rs.6500/- will be eligible to become a member.

Main Compliance:

1) Declaration by person taking up employment in writing that whether or not he is a member of the fund
and his account number, particulars of the last employer.
2) In case of contractor, it is the responsibility of the principal employer to ensure that provisions of this act
are complied by Contractors.

Payment to be made to PF authorities:

Challan No. Payment Particulars Due Date

A/c No.1 Employee and Employer Pf Due 15th of the Following month

A/c No.2 Admn and Inspection Charge 15th of the Following month

1.1 % of Salary

A/c No.10 Pension Fund 15th of the Following month

A/c No.21 Insurance Fund 15th of the Following month

0.5% of Basic + DA

A/c No.21 Insurance Fund Inspection and Admn 15th of the Following month
Charge

0.01%
Submission of Returns:

Form No. Particulars Due Date

Form 9 Details of employees on the 1st day of Within 1 month of

coverage coverage

Form 2 Nomination Form Immediately on joining the

fund

Form 5 Addition of members 15th of the Following month

Form 10 Deletion of members 15th of the Following month

Form 12 Detail of payments made 21st of the Following

month

Form 3A A memberwise ledger cards posted 31st May Each Year

monthly

Form 6A Abstract of Form 3A for the year 31st May Each Year

Form 5A Return of ownership Once in the beginning

Form 19 Withdrawal of PF in case of

retirement/resignation

Form 13 Transfer of PF

Form 31 Loan (minimum service 5yrs)

Settlement:

1) Settlement before completion of 10yrs

Form 19 (PF withdrawal)

Form 10c (Pension withdrawal)

2) Settlement after completion of 10yrs

Form 19 & 10D

3) Death of the Employee

Form 20 & 10D

Working Notes:
PF contribution by Employer & Employee is 12% on the Basic & DA

6,500/- is a standard amount to calculate pension

Salary Employee - 12% Employer - 12%

(Basic + DA) PF A/c Provident Fund Pension

Less than 6,500/- 12% 3.67% 8.33%

6,500/- 12% 3.67% 8.33%

More than 6,500/- 12% (Salary x 12%) – (8.33% 8.33 % of 6,500

of 6,500)

Examples: Amt in Rupees

Salary Employee - 12% Employer - 12%

(Basic + DA) PF A/c Provident Fund Pension

1. 2,500 300 92 208

2. 3,500 420 128 292

3. 7,500 900 359 541

4. 20,000 2,400 1,859 541

1. Employee Contribution

PF = 2,500 x 12% = 300

2. Employer Contribution

PF = 2,500 x 3.67% = 92

Pension = 2,500 x 8.33% = 208

3. Employee Contribution

PF = 7,500 x 12% = 900

Employer Contribution

PF = (7,500 x 12%) = 900 – 541 = 359

Pension = 6,500 x 8.33% = 541

 The Employees’ State Insurance Act, 1948

Applicability:

1) Applicable to every establishment in which 20 or more persons are employed.

2) Every employee drawing wages and DA upto Rs. 10,500/- will be eligible to become a member.
3) Monthly Challan – 21st of the next month is the last date of submission

Contribution 6.5% of Basic + DA

1.75% deduct from Employee Salary on Basic + DA

4.75% employer contribution

4) Half yearly return – 6A

5) Company should inform within 48 hours to the Factory Inspector and ESIC inspector if any fatal accident
(which can be result into death)

If the person fail to inform it is being created as a death or murder against a Company
 The Maternity Benefit Act, 1961

Applicability:

1) To every establishment being a factory, mine or plantation including Govt. establishment and wherein
person are employed for the exhibition of equestrian acrobatic and other performances.
2) To any establishment in which 10 or more persons are employed or were employed on any day of the
preceding 12 months

Prohibition of employment by workmen during certain period:

During 6 weeks immediately following the day of delivery or miscarriage

Prohibition of work by workmen during certain period:

During 1 month immediately preceding the period of six week before the date of expected delivery, if the
work

which is of an arduous nature or

which involved long hours of standing or

which in any way is likely to interfere with her pregnancy or normal development of the foetus or is
likely to cause her miscarriage or to adversely affect her health.

Payment of Maternity Benefit:

1) Payment of maternity benefits at the rate of the average daily wages for the period of actual absence.
2) Average daily wages: Wages paid during the period of 3 calendar months immediately preceding the date
of her expected delivery..
3) The workmen must have actually worked for a period of not less than 80 days in the twelve months
immediately preceding the date of her expected delivery.
4) Maximum period entitled: Maximum 12 weeks of which not more than 6 weeks shall precede the date of
her expected delivery.

Leave for

1) Miscarriage: 6 weeks immediately following the day of her miscarriage

2) Medical termination of pregnancy: 6 weeks immediately following the day of her pregnancy.
3) Tubectomy operation: 2 weeks immediately following the day of her pregnancy.
Nursing Breaks: Every women delivered of a child who returns to duty after such delivery shall be allowed in
the course of her daily work two breaks for nursing he child until the child attains the age of 15 months
 The Payment of Gratuity Act, 1972

Applicability:

1) To every factory and other establishment in which 10 or more persons are employed.
2) Once this is applicable, later on even if employees are reduced to less than, this Act remains applicable.

Main Compliance:

1) Duty of employer to give notice of application of the Act to controlling authority.

2) Payment to Gratuity:
a) Eligibility: Continuous 5 years of service
b) In case of death of employee, payment has to be made to minor.
c) Amount of Gratuity:
Normal: Last drawn salary/26*15*no of year of service

Seasonal: Last drawn salary/26*7*no of year of service

Salary: Basic+ DA

d) Maximum amount: Rs.350000

e) Time limit: within 30 days of form due date
3) Duty of employer to determine the amount of gratuity and give notice in writing to the person to whom
the gratuity is payable and to the controlling authority.
4) Duty of the employer to give notice of opening, change or closure of establishment
5) Duty of the employer to obtain nominations from the employees.

Ex.

If the salary (Bonus + DA) = 5,000

5000/26 (working days) x 15 (days service) x nos of year service completed