Month: September 2022

Social security in India includes a variety of statutory insurances and social grant schemes bundled into a formerly complex and fragmented system run by the Indian government at the federal and the state level and is divided into three categories: non-contributory and tax-payer-funded, employer-funded and lastly, joint-funded (contributed by both the employer and the employee and partially contributed by the government). The system has since been universalised with the passing of The Code on Social Security, 2020. These cover most of the Indian population with adequate social protection in various situations in their lives. The Central Government of India’s social security and welfare expenditures are a substantial portion of the official budget and as well as the budgets of social security bodies, and state and local governments play roles in developing and implementing social security policies. Additional welfare measure systems are also uniquely operated by various state governments. The government uses the unique identity number (Aadhar) that every Indian possesses to distribute welfare measures in India. The comprehensive social protection system of India can be categorised as the follows: social assistance (in the form of welfare payments in cash or kind funded through taxations) and mandatory social security contributory schemes mostly related to employment. The Code on Social Security, 2020 is part of the Indian labor code that deals with employees’ social security and have provisions on retirement pension and provident fund, healthcare insurance and medical benefits, sick pay and leaves, unemployment benefits and paid parental leaves. The largest social security programs backed by The Code on Social Security, 2020 are the Employees’ Provident Fund Organisation for retirement pension, provident fund, life and disability insurance and the Employees’ State Insurance for healthcare and unemployment benefits along with sick pays. There is also the National Pension System which is increasingly gaining popularity. These are funded through social insurance contributions on the payroll. While the National Food Security Act, 2013, that assures food security to all Indians, is funded through the general taxation. With the passing of the social security code by the Indian Parliament, the fragmented social security system was universalised, resembling the social security systems of most developed countries.

The Indian Social security Schemes for organized sector have been influenced by these factors:

(i) British policy to raise labour cost in the established industries.

(ii) A policy of corporate paternalism leading to variety of benefits like promoting loyalty of employees.

(iii) In the post-independence era, the emerging of welfare state concept which has lead to a series of welfare and protective legislation based on relevant international labour standards.

(iv) Many of the social security and welfare measures become statutory obligation of employers.

(v) Due to rapid industrialization there was a need to promote the commitment to work force for industrial and urban life.

In India due to rapid industrialization a new class of Industrial proletariat was created having a rural background and with every little social and material resources. For them there was a great need of systematized help through social security agencies. The non-industrial classes were also in urgent need of social security which was due to industrialization in 19th century.

Indian social reformers, labour welfare organization and many progressive employers persuaded the govt to undertake social security measures as a protection for the workers against few of contingencies.

Indian Govt. appointed a committee of enquiry and the committee reported that steps should be taken by mill owners to alleviate the distress caused by the unemployment. It further recommended that a voluntary gratuity schemes should be introduced but unfortunately no action could be taken for its implementation.

In 1929 Government of Bombay was the first to give a proposal for enacting Maternity act. It was observed the productivity depends upon the quality of labour which further primarily depends upon its quality of labour which further primarily depends upon its quality of labour which further primarily depends upon its health, nutrition, literacy, social values and customs.

The Bombay textile Labour Enquiry observed, “that in all pursuits a high standard of efficiency can be expected only from persons who are physically fit and free from mental worries. That is only from persons who are properly trained. Properly housed, properly fed and properly clothed.”

It is understood that to neglect the labour is to neglect productivity as finally the welfare of country lies in their welfare. To build up a stable labour force with full commitment was only possible by creating a genuine welfare state of an affairs, good perception and psychological feelings for creating good moral habits.

Status of Social Security in India during Pre-Independence Period

The evaluation of social security in India can be studied broadly in two segments.

1. Pre-Independence Period
2. Post-Independence Period

There was large scale industrialization in Indian from 1850 especially in the Textile Industries. But as workers being totally unorganized no attention could be paid towards the welfare.

Pre-Independence Period and Social Security of Workers

In 1877 first labour unrest took place at “Empress Mills Nagpur” for improving their wages. In 1890 first Trade Union Bombay Mill Hands association was formed under the leadership of N.M. Lokhande.

In 1885 the first Fatal accident Act was passed. Inspite of these workers were living under very poor inhumane conditions. There were no provisions of any measures for social security before 1920.

In 1920 International Labour Organization gave a boost to labour welfare and social security schemes. In the convention of 1929 of ILO the workers social security schemes. In the convention of 1929 of ILO the workers social security was considered as of high importance. Then there came the appointment of strong recommendations on labour welfare and social security.

After the first world war, due to Indian National movement. British Government started thinking about the employees and accordingly (i) Workmen’s compensation Act, 1923 (ii) The payment of wages Act’ 1936 (iii) Minimum wages Payment Act (iv) Maternity Benefits Act were passed from time to time Mr.B.R. Ambedkar was appointed as a ‘labour member of the victory’s council” after second world war.

“The Whitley Commission” recommended that some suitable measures should be taken to restore health to the workers. On the recommendation of the commission and in the consultation with the “standing Advisory Committee of Labour and Industries” the government agreed for a contributory Medical scheme in which both employer and employee will contribute towards a common fund.

In 1937 a contributory Health Insurance scheme was formulated. At the same time , the Bombay Textile enquiry Committee also recommended the formulation of health Insurance Scheme in which the (i) employer (ii) Employee and (iii) The state Government contributed towards the fund.

In 1940 during the first Labour Minister’s conference the need for sickness Benefit fund was felt. In 1943 Indian Government appointed a commission under the chairmanship of B.R. Ambedkar and its report was submitted in 1944.

B.R. Ambedkar commission strategy recommended the upper age limit of 60 years and employment was divided into three categories- permanent, temporary and casual. The employer was required to pay contribution towards insurance schemes for all the workers, whereas only permanent and temporary workers were required to pay their contribution.

In 1947, the Industrial dispute Act was enacted with the main objective was to make provisions for the investigation and settlement of industrial disputes. Most important contribution of employee’s State insurance Act 1923.

Post–Independence period and Social Security

In 1947 India got Independence and Indian Government intensified the labour welfare and social security measures. In 1948 employees state Insurance was duly modified and that was beginning of the era of Social Insurance of Indian labour.

“In 1952 international Labour Organization provided the expert advice of eight experts on social security for long six month for proper implementation of the schemes of employee state Insurance Act. They devised and advised the method of its administration, the development of the panel system of medical benefit and training of the necessary staff in order to extend the scheme throughout the country.”

In 1948 Indian government made certain important amendments in existing Indian factories act 1934 and came with an entirely new nomenclature “The factories act 1948” with a main purpose of regulating conditions of work in manufacturing establishment for ensuring adequate health, welfare measures, hours of work and leave with wages.

In 1948 Indian government made certain important amendments in existing Indian factories Act 1934 and came with an entirely new nomenclature “ The Factory Act 1948” with a main purpose of regulating conditions of work in manufacturing establishment for ensuring adequate health, welfare measures, hours of work and leave with wages.

In 1948 the Government enacted Maximum wages Act for prevention of exploitation of labour due to payment of unduly low wages.

In 1952 Government enacted Employee’s Provident fund and miscellaneous provision act with a main objective of providing substantial measures of financial security and timely monetary assistance to industrial works and their families.

‘Besides this’

(i) “The Assam tea plantations provident fund act 1995.” The personal injuries (Compensation Insurance) act, 1963.

(ii) The seamen’s provident fund Act 1966

(iii) The plantation labour Act 1951

(iv) The (central) maternity benefit Act, 1961

Were enacted for providing social security to weaker section of the society where there were more chances of exploitation and victimization.

Social Assistance:

It is a program through which the Government attempts to ameliorate the distress caused by contingencies of life. No contributions are made, for getting the benefit, by the workers.

In other words, social assistance includes “non-contributory benefits towards the maintenance of children, mothers, invalids, the aged, the disabled and others like the unemployed.” Benefits are provided to persons of small means in sufficient quantity so that their minimum standards of needs could be satisfied.

The National Social Assistance Programme (NSAP) is a Centrally Sponsored Scheme of the Government of India that provides financial assistance to the elderly, widows and persons with disabilities in the form of social pensions.

Components

The National Assistance Program consists of five sub-schemes:

Indira Gandhi National Old Age Pension Scheme (IGNOAPS)

The Indira Gandhi National Old Age Pension Scheme (IGNOAPS) is a non-contributory old age pension scheme that covers Indians who are 60 years and above and live below the poverty line. All individuals above the age of 60 who live below the poverty line are eligible to apply for IGNOAPS. All IGNOAPS beneficiaries aged 60–79 receive a monthly pension of Rs. 300 (Rs. 200 by central government and Rs. 100 by state government). Those 80 years and above receive a monthly pension amount of Rs.500.States are strongly urged to provide an additional amount at least an equivalent amount to the assistance provided by the Central Government so that the beneficiaries can get a decent level of assistance.

Indira Gandhi National Widow Pension Scheme (IGNWPS)

Indira Gandhi National Widow Pension Scheme (IGNWPS), introduced in the year 2009, provides BPL(Below Poverty Line) widows in the age group 40 to 59(later revised 40 to 79 WEF 01.10.2012) with a monthly pension of Rs. 200 (later revised to Rs.300 WEF 01.10.2012) per beneficiary. This programme was started in 2009 under the ministry for rural development.

Indira Gandhi National Disability Pension Scheme (IGNDPS)

Eligibility: Individuals aged 18 years and above with more than 80% disability and living below the poverty line.

Amount: Rs. 300 (US$3.80) per month (Rs. 500 (US$6.30) for those 80 years and above).

National Family Benefit Scheme (NFBS)

In the event of death of a bread-winner in a household, the bereaved family will receive lumpsum assistance of 20,000. The bread-winner should have been between 18–64 years of age. The assistance would be provided in every case of death of primary bread-winner in a household.

Annapurna Scheme

This scheme aims to provide food security to meet the requirement of those senior citizens who, though eligible, have remained uncovered under the IGNOAPS. Under the Annapurna Scheme, 10 kg of free rice is provided every month to each beneficiary.

Social Insurance

It is a mechanism through which benefits are provided to the contributories (out of contributions made by them, the employers and the government) necessary for satisfying wants during old age, sickness, unemployment and other contingencies of life.

The main features of social insurance are as follows:

(i) Certain risks which cannot be faced by the persons in their individual capacity are faced collectively by a group of persons.

(ii) Social insurance is contributory in nature as both the government and the subscribes have to deposit monthly subscriptions to the social insurance scheme.

(iii) Certain, benefits are provided to them in the case of contingency.

(iv) Benefits are claimed by the insured persons as a matter of their rights in accordance with their salary.

(v) They are insured against the risk on compulsory basis, and it is obligatory for them to contribute under the scheme.

Features

• The contributions of individuals is nominal and never goes beyond what they can afford
• the benefits, eligibility requirements and other aspects of the program are defined by statute;
• explicit provision is made to account for the income and expenses (often through a trust fund);
• it is funded by taxes or premiums paid by (or on behalf of) participants (but additional sources of funding may be provided as well); and
• The program serves a defined population, and participation is either compulsory or so heavily subsidized that most eligible individuals choose to participate.

Redistribution

In order to achieve a better and more equitable distribution of insurance costs, the government intervenes through the means of taxation of low risk individuals in order to subsidise the premiums that have to be paid by high risk individuals. Therefore, there is a redistribution from low risk individuals to high risk individuals. Because of this, income taxes are often used in the efficient implementation of social insurance programs. In the case of the Affordable Care Act, for example, an individual mandate was included which required Americans to purchase health insurance or be subject to a financial penalty. This allowed higher cost individuals, from the perspective of insurance companies, such as people with pre-existing conditions to be covered and not excluded at a reasonable rate. Although causing political controversy, was an example of redistribution within a social insurance program.

Externalities

If individuals do not have social insurance and are thereby unable to afford the basic right of healthcare, then not only are they subjecting themselves to illnesses but also creating the likelihood that others around them will be infected as well. This would be an example of a negative externality. In the case of the now struck down individual mandate, everyone purchasing health insurance creates a positive externality for those that are high cost to insurance companies as they can now afford health care and cannot be discriminated upon because of various emerging or pre-existing conditions.

Durability

The existence of social insurance stems from the acceptance of the ideology that workers should be insured against the risk of losses of economic status due to their participation in the labour market.  This inherent idea of fairness has propagated the desirability and subsequent durability of this program.

• Social insurance provides protection against certain risks in the economy that private insurance fails to deal with. Private insurance often becomes extremely unaffordable due to the issues of adverse selection and moral hazard, and to counteract such steep prices, the need for a publicly mandated social insurance increases.
• Social insurance is considered fair and socially responsible because it taps into the human desire of wanting to help individuals who face risks that are not their fault and neither are they in their control.
• The premiums required for the existence of social insurance policies come from workers who will ultimately be covered by the benefits and this sense of accountability makes the program seem fair and its beneficiaries, deserving.
• Social insurance helps account for the lack of predictability that individuals in the market have regarding their retirement, health and stability and thereby insures them against long term risks that they now no longer need to think about but are, for the most part, inevitable.

In every country, the composition of population varies from one to other country to some extent. The features of the population also vary. For comparative study the factors such as – age, sex, education, health, income, employment, social and employment risks, size of family, family and social systems, etc. The position of population in developed country is better than developing country and is poor in underdeveloped country.

In developed countries the people get education, medical, pension, provident fund facility, accident benefits, maternity benefits, survivor benefits, death benefits, support in case of natural calamities, retirement benefits, unemployment allowances, disablement benefits, etc.

In developing countries some of the benefits are not provided wherein underdeveloped countries these are not provided or very less provided. In their social set up the population is not secured properly. It creates worries for individuals, families, societies and the nation. There is need to support the downtrodden persons for at least their better survival and development of the economy and nation as a whole.

Social security is a very wide concept to define and it is difficult also. Social security means the efforts related to protect and support the sufferers against the impacts of different types of unwanted activities due to that the life of persons is under risk. These are called social risks and include retirement, sickness, disability, old age, survivor, death of earning members, maternity, unemployment, etc.

Social security administration stated that, “social security to programmes established by government statutes which insure individuals against interruption or loss of earning power, and for certain special expenditures arising from marriage, birth, or death”.

“Social security means that government, which is the symbol and representative of society is responsible for fixing a minimum standard of living for all its citizens.” G.H.D. Cole.

“Social security is an instrument for social transformation and progress and must be preserved, supported and developed as such. Furthermore, far from being an obstacle to economic progress, as is all too often said, social security organized on a firm and sound basis will promote such progress, since once men and women benefit from increases security and are free from anxiety for tomorrow, they will naturally become more productive.” (Preface to “Into the 21st Century – the Development of Social Security”).

United Nations General Assembly adopted in its Universal Declaration of Human Rights stating that, “every member of a society has a right to social security”. As Mr. Francis Blanchard, Director

Objectives of Social Security:

1. Compensation
2. Restoration
3. Prevention

Compensation:

Compensation ensures security of income. It is based on this consideration that during the period of contingency of risks, the individual and his/her family should not be subjected to a double calamity, i.e., destitution and loss of health, limb, life or work.

Restoration:

It connotates cure of one’s sickness, reemployment so as to restore him/her to earlier condition. In a sense, it is an extension of compensation.

Prevention:

These measures imply to avoid the loss of productive capacity due to sickness, unemployment or invalidity to earn income. In other words, these measures are designed with an objective to increase the material, intellectual and moral well-being of the community by rendering available resources which are used up by avoidable disease and idleness.

Scope:

The term ‘social security’ is all embracing. The scope of social security is, therefore, very wide. It covers the aspects relating to social and economic justice.

All social security schemes furnished by the government are broadly classified into two types:

(i) Social Assistance, and

(ii) Social Insurance.

According to the Social Security (Minimum Standards) Convention (No. 102) adopted by the ILO in 1952, the following are the nine components of social security that configure its scope:

(i) Medical care,

(ii) Sickness benefit,

(iii) Unemployment benefit.

(iv) Old age benefit,

(v) Employment injury benefit,

(vi) Family benefit,

(vii) Maternity benefit,

(viii) Invalidity benefit, and

(ix) Survivor’s benefit

Need for Social Security:

One moot question to be answered is why there is a need for social security especially in India. As has already been mentioned, the underlying philosophy of social security is to ensure a minimum level of material living to the needy or helpless ones of the society by the State.

Our accumulated experience reveals that in an industrial economy, the workers have been subjected to periodic unemployment due to cyclical fluctuations in business, sickness, industrial accidents and old age. In fact, there is nothing more disconcerting to worker and his/her family than unemployment.

Characteristics

Over a long period of nearly a century, many experts, organisations, and dictionaries have given the definitions and meanings of concept of social security. These have been affected with the situation at the time of definitions given. They have focused on different aspects of life of a person relating to his social security.

(a) Social security programme is for the persons living in the society and working.

(b) It is for the needy persons as retired, unemployed, old, and disabled.

(c) The interest of social security to facilitate needy persons for at least normal life living.

(d) It is to offset the impacts of hardship due to social risks such as – sickness, old age, retirement, disability and unemployment.

(e) Contributes in improving the standard of living of the ignored people from the society.

(f) This programme is necessary for national development and happiness.

(g) The major roles played in providing the facilities are governments, NGOs, trusts, and volunteers.

(h) Governments enacted certain laws regarding benefits provided by them and these are known as social security legislations.

(i) The evolution of concept of social security and social security legislation has taken a long time to reach to the current position.

(j) The facilities provided and social security legislations are not same across the world.

(k) Many benefits are provided under social security to the workers and may include pension, gratuity, maternity, provident fund, sickness benefits, disablement benefits, funeral benefits, welfare facilities, etc.

(l) People prefer to join the jobs where social security measures are provided and well implemented.

India’s social security system is composed of several schemes and programs spread throughout a variety of laws and regulations including employment and labour laws. This section discusses the government-controlled social security system in India which largely comprise of employer obligations such as Pension Schemes, Health Insurance and Medical Benefit, Disability Benefit, Maternity Benefit, and Gratuity.

The section will briefly discuss various legislation (read compliances) to provide social security cover to employees including coverage, benefits, and application to foreign expatriates.

The social security system in India has evolved in obedience to the impact of Western influence and of the modern urban industrial system. Though the non-industrial classes also are in urgent need of social security, their needs have been more acutely felt after the advent of industrialization in the 19th century. Social reformers, labor welfare organizations and many progressive employers persuaded the government to undertake social security measures as a protection for the workers at least against a few contingencies. “Social security is a major aspect of public policy today and the extent of its prevalence is a measure of the progress made by a country towards the idea of a welfare state”.

Article 43 of the Indian Constitution speaks of state’s responsibility to provide social security to the citizens of this country.

The social security strategies in India include the following:

• Social insurance with the participation of the beneficiary pooling risks and resources.
• Social assistance financed from general revenues and granting benefits on the basis of means test.
• Employers liability schemes where there is an identifiable employer and within the economic capacity of the employer.
• National Provident Funds.
• Universal schemes for social security.

The following few legislative measures have been adopted by the Government of India to promote social security schemes for industrial workers.

Workmen’s Compensation Act, 1923: The Workmen’s Compensation Act was passed in March 1923, and was put into effect on 1st July 1924. This Act followed the British model, but was adapted to suit Indian conditions. Was-time injuries were also covered by the Act. The 1962 Amendment raised the wage limit covered under the Act to Rs.500 per month. It also amended the clauses bearing on industrial diseases, and revised the rates of compensation. With effect from 1st October 1975, the wage limit coverage under this Act has been raised from Rs.500 to Rs.1000 per month.

Employees’ State Insurance Act, 1948: Two conventions on health of workers in industry, commerce and agriculture were adopted in 1927 by International Labor Conference. The question about health insurance was also discussed by the Royal Commission on Labor, and a tentative scheme of health insurance was proposed in its comprehensive report in 1931. Its recommendations on the adoption of a health insurance scheme were not accepted by the Government of India because of financial difficulties. All these built up a lot of pressure on the government.

Health Insurance and Medical Benefit

India has a national health service, but this does not include free medical care for the whole population. The Employees’ State Insurance (ESI) Act, 1948 created a fund to provide medical care to employees and their families, as well as cash benefits during sickness and maternity, and monthly payments in case of death or disablement for those working in factories and establishments with 10 or more employees. (As on March 31, 2019, the total number of ESI beneficiaries was over 130 million, with coverage extending to over 120,00,000 factories and business establishments.)

Coverage under the ESI scheme has been extended to hotels, shops, cinemas and preview theaters, restaurants, newspaper establishments, and road-motor transport undertakings. The scheme has also been extended to private educational and medical institutions that have employed 10 or more employee. This is applicable in certain states and union territories only.

The ESI scheme offers benefits to both the workers and their dependents in case of any unfortunate eventualities at work. Under the ESI Act, employees or workers employed at the above mentioned categories earning wages up to INR 21,000 per month (up to INR 25,000 per month in case of person with disability) are entitled to this social security scheme.

Eligible workers contribute 0.75 percent of their salary towards the ESI while the employer pays 3.75 percent making a total contribution of 4.5 percent. These new rates are effective from July 1, 2019. (Earlier these rates stood at 1.75 percent and 4.75 percent, respectively.) The company or establishment can apply for an ESI registration within 15 days from the time the ESI Act becomes applicable to that entity. The Employees’ State Insurance (Central) Amendment Rules, 2017 was notified on January 20, 2017 detailing new maternity benefits for women who have insurance. As of March 31, 2019, 51,20,000 women have benefitted from the scheme.

Further, daily wage earners earning an average wage of up to INR 137 are exempted from payment of contribution. Employers, however, are mandated to contribute their own share in respect of these employees.

Sickness benefit under ESI coverage is 70 percent of the average daily wage and is payable for a maximum of 91 days in a year. To qualify for sickness benefit, the insured worker is required to contribute for 78 days in a contribution period of six months. There are provisions for extended sickness benefits and corresponding eligibility criteria.

ESI also provides disablement benefit, which is applicable from day one of entering insurable employment for temporary disablement benefit. In case of permanent disablement benefit, it is paid at the rate of 90 percent of wage in the form of monthly payment, depending upon the extent of loss of earning capacity as certified by a Medical Board.

Besides sickness and disability pay outs, the ESI provides for dependents’ benefits (DB). The DB paid is at the rate of 90 percent of the wage in the form of monthly payment to the dependents of a deceased insured person in cases where the death has occurred due to employment injury or occupational hazards.

Other benefits that are offered with ESI are:

• Medical benefits;
• Maternity benefits;
• Unemployment allowance;
• Confinement expenses;
• Funeral expenses;
• Physical rehabilitation;
• Vocational training; and
• Skill upgradation training under Rajiv Gandhi Shramik Kalyan Yojana (RGSKY).

Disability Benefit

The Employee’s Compensation Act, 1923, formerly known as the ‘Workmen’s Compensation Act, 1923’, requires the employer to pay compensation to employees or their families in cases of employment related injuries that result in death or disability.

In addition, workers employed in certain types of occupations are exposed to the risk of contracting certain diseases, which are peculiar and inherent to those occupations. A worker contracting an occupational disease is deemed to have suffered an accident out of and in the course of employment, and the employer is liable to pay compensation for the same. Injuries resulting in permanent total and partial disablement are listed in parts I and II of Schedule I of the Employee’s Compensation Act, while occupational diseases have been defined in parts A, B, and C of Schedule III of the Employee’s Compensation Act.

Maternity Benefit

The Maternity Benefit (Amendment) Act, 2017 came into force on April 1, 2017, and increases some of the key benefits mandated under the previous Maternity Benefit Act of 1961. The amended law provides women in the organized sector with paid maternity leave of 26 weeks, up from 12 weeks, for the first two children. For the third child, the maternity leave entitled will be 12 weeks. India now has the third most maternity leave in the world, following Canada (50 weeks) and Norway (44 weeks).

The Act also secures 12 weeks of maternity leave for mothers adopting a child below the age of three months as well as to commissioning mothers (biological mothers) who opt for surrogacy. The 12-week period in these cases will be calculated from the date the child is handed over to the adoptive or commissioning mother.

Gratuity

The Payment of Gratuity Act, 1972 directs establishments with 10 or more employees to provide the payment of 15 days of additional wages for each year of service to employees who have worked at a company for five years or more.

Gratuity is provided as a lump sum payout by a company. In the event of the death or disablement of the employee, the gratuity must still be paid to the nominee or the heir of the employee.

The employer can, however, reject the payment of gratuity to an employee if the individual has been terminated from the job due to any misconduct. In such a case of forfeiture, there must be a termination order containing the charges and the misconduct of the employee.

Gratuity is calculated through the formula mentioned below:

Gratuity = Last Drawn Salary × 15/26 × Tenure of Service

Approaches to employee welfare refer to the beliefs and attitudes held by agencies which provide welfare facilities. Some agencies provide welfare facilities inspired by religious faith, others as a philanthropic duty and the like.

The various approaches to labour welfare reflect the attitudes and beliefs of the agen­cies which are engaged in welfare activities. Welfare facilities may be provided on religious, philanthropic or some other grounds. Moreover, the different approaches to labour welfare reflect the evolution of the concept of welfare. In bygone days, the government of the land had to compel the owner of an industrial establishment to provide such basic amenities as canteens, rest rooms, drinking water, good working conditions, and so forth, for their employees. Such compulsion was necessary because the employer believed in exploiting labour and treating it in an unfair manner. But times have changed, and the concept of welfare, too, has undergone changes.

Many progressive managements today provide welfare facilities, voluntarily and with enlight­ened willingness and enthusiasm. In fact, welfare facilities are not restricted to the workers alone. They have now been extended to the society in general. In other words, labour welfare has been extended to include social welfare. Tata Steel Works at Jamshedpur, for example, spends Rs 10 crore each year on social welfare. Brooke Bond have set up a free animal welfare clinic at Gevrai, Aurangabad, under the direct charge of a qualified veterinary doctor. Jindal Aluminium, Bangalore, maintains the famous Naturopathy and Yogic Sciences Centre and a public school for the benefit of the public. The Jindal Scholarship Trust has been set up, under which deserving students are given scholarships. The Hindustan Machine Tools has a big playground and a community hall, which are let out for competitions and functions.

A study of the approaches to labour welfare is desirable for the management, the workers and the general reader. For the general reader, a study of approaches is essential because his/her knowledge of the subject is incomplete without knowledge of these approaches, and a knowledge of approaches enables the manager and the worker to have a better perspective on welfare work.

The approaches and their brief descriptions are:

Religion Theory

The religion theory has two connotations, namely, the investment and atonement aspects. The investment aspect of the religion theory implies that the fruits of today’s deeds will be reaped tomorrow. Any action, good or bad. is therefore treated as an investment. Inspired by this belief, some employers plan and organise canteens and creches. The atonement aspect of the religion theory implies that the present disabilities of a person are the result of the sins committed by him/her previously. He/she should undertake to do good deeds now to atone or compensate for his/her sins. There is the story of a big Jain employer who firmly held the belief that the provision of welfare facilities for workers was outside the duties of the management. Whatever he did provide was under government compulsion and supervision. It so happened, however, that the children born to him died as soon as they were born. Later, his own health suffered. He felt that, as a compensation, or expiration or even as an investment in a good deed (punyam), he should liberally contribute to the creche in the factory (as well as to other child-welfare institutions), and also to medical services for his workers. Consequently, in this particular factory, there came to exist an excellent creche and a well-organised dispensary.

Policing Theory

According to this view, the factory and other industrial workplaces provide ample opportunities for owners and managers of capital to exploit workers in an unfair manner. This could be done by making the labour work for long hours, by paying workers low wages, by keeping the workplaces in an unhygienic condition, by neglecting safety and health provisions, and by ignoring the provision of elementary human amenities, such as drinking water, latrines, rest rooms and canteens. Clearly, a welfare state cannot remain a passive spectator of this limitless exploitation. It enacts legislation under which managements are compelled to provide basic amenities to the workers. In short, the state assumes the role of a policeman, and compels the managers of industrial establishments to provide welfare facilities, and punishes the non-complier. This is the policing theory of labour welfare.

Philanthropic Theory

Philanthropy means affection for mankind. The philanthropic theory of labour welfare refers to the provi­sion of good working conditions, creches and canteens out of pity on the part of the employers who want to remove the disabilities of the workers. Robert Owen of England was a philanthropic employer, who worked for the welfare of his workers. The philanthropic theory is more common in social welfare. Student hostels, drinking water facilities, the rehabilitation of crippled persons, donations to religious and educational institutions, and so forth are examples of philanthropic deeds.

Paternalistic Theory

According to the paternalistic theory, also called the trusteeship theory, of labour welfare, the industrialist or the employer holds the total industrial estate, properties and the profits accruing from them, in trust. The property which he/she can use or abuse as he/she likes is not entirely his/her own. He/she holds it for his/her use, no doubt, but also for the benefit of his/her workers, if not for the whole society. For several reasons, such as low wages, lack of education, and so forth the workers are at present unable to take care of themselves. They are, therefore, like minors, and the employers should provide for their well-being out of funds in their control. The trusteeship is not actual and legal, but it is moral and, therefore, not less real.

Placating Theory

This theory is based on the assumption that appeasement pays when the workers are organised and are militant. Peace can be bought by welfare measures. Workers are like children who are intelligent, but not fully so. As crying children are pacified by sweets, workers should be pleased by welfare works.

Public Relations Theory

According to this theory, welfare activities are provided to create a good impression on the minds of the workers and the public, particularly the latter. Clean and safe working conditions, a good canteen, creche and other amenities, make a good impression on the workers, visitors and the public. Some employers proudly take their visitors round the plant to show how well they have organised their welfare activities.

Social Theory

The social obligation of an industrial establishment has been assuming great significance these days. The social theory implies that a factory is morally bound to improve the conditions of the society besides improving the condition of its employees. Labour welfare, as mentioned earlier, is gradually becoming social welfare.

Functional Theory

Also known as the efficiency theory of labour welfare, the functional theory implies that welfare facilities are provided to make the workers more efficient. If workers are fed properly, clothed adequately and treated kindly, and if the conditions of their work are congenial, they will work efficiently. Welfare work is a means of securing, preserving and increasing the efficiency of labour.

Labour Welfare: Extra-Mural

Housing Facilities:

Some of the industrial employers both in public and private sectors have provided housing facilities to their employees. Almost all the public sector enterprises have either provided or are in the process of providing housing facilities to their employees. The employees who are not provided corporation’s quarters are paid house rent allowance at some places.

Recreational Facilities:

Recreation is commonly taken to be the opposite of work. It has an important bearing on the individual’s personality as well as his capacity to contribute to the social development. It affords the worker an opportunity to develop his sense of physical and mental discipline. Music, dance, drama, sports and games, painting, carving etc. are different forms of recreation.

Transport facilities:

The growth of industrial state and workshops outside the city has made commuting a problem for workers .in India, since the public transport system is not fully developed and hardly efficient; the fatigue of travel to and from work has a detrimental effect on the attendance pattern of workers. The CLW after studying the situation recommended that transport on a large scale is best provided by the state; that the local bodies should stream line their operations, increase their fleet and the frequency of buses especially to labour colonies, industrial estate and township, and for carrying workers to and from night shift . They feel that employers could help by giving conveyance allowance

Educational Facilities:

The pace of economic and social progress of a particular country largely depends upon the quality of its work force. Education plays a very important part in motivating and enabling the working population for changes necessary for accelerated progress and for their mental and physical development. This has been recognized in our social and economic planning and a suitable financial outlay on education has been made in different five-year plans. Improvement in the quality of the industrial work force demands accelerated pace of economic development for which education of workers, their families, and their children is very essential.

Labour Welfare: Intramural

Health and medical facilities:

A healthy workforce is of utmost importance to industry. The ILO in its conventions and recommendations has laid down standards, which have had a contributory effect on legislation in India. the ILO convention 25 concern sickness insurance and medical facilities to be provided to an insured person while convention 103 deals with maternity protection

Canteen:

The ILO in its recommendation 102, mentioned this facility and felt that a competent authority in each country should guide establishments with regard to nutrition, hygiene, finance, etc. In India the factories act places the responsibility on state governments to make rules that in any specified factory with more than with 250 workers, a canteen or canteens should be provide and certain standards should be maintained

Crèches:

The factories act lays down that in any factory with more than 50 women workers a crèche should be provided and maintained for children less than 6 years in a clean and sanitary condition. The act state that the crèche should be under the care of women trained in child care and should have adequate accommodation, lighting and ventilation the state government is empowered to make rules in respect of standards, equipment and facilities .Mothers are also to be given time to feed their children at necessary intervals . The rules formed by sate government lay down the qualifications necessary for the crèche staffs. The need for kindergarten classes in crèches for children between 3 and 6 years was also felt

Facilities for storing and drying clothing:

It is only the Factories Act that has incorporated such a provision. Under section 43 of the Act, a state government may make rules for the provision of suitable places for keeping clothing not worn during working hours and for the drying of wet clothing. As per the Maharashtra Factories Rules 1963, such facilities shall include the provision of separate rooms, pegs, lockers or other arrangements approved by the Chief Inspector in all classes of factories such as engineering workshops, iron and steel works, oil mills, chemical factories, motor garages, tanneries etc.

The International Labour Conference

It is an annual gathering of governments, workers, and employers from ILO member countries. The conference’s goal is to discuss the organization’s broad policies, establish and adopt international labour standards, and elect the governing body.

 Governing Body

It is the ILO’s executive body, responsible for policy decisions, setting the agenda for the International Labour Conference, adopting a budget, and electing the Director-General. It is made up of 56 titular members, of which 28 are held by governments and 14 by employers and workers, respectively. Ten of the titular government seats are non-elected, permanent seats held by states with the greatest industrial importance; India is one of these nations.

International Labour Office

It is the International Labour Organization’s permanent secretariat, and it is in charge of the organization’s administration as well as the implementation of technical cooperation activities, as well as programmes for awareness, advocacy, and information sharing.

While international labour standards are revised on a regular basis, with new Conventions, Protocols, or Recommendations being drafted, the ILO Governing Body has identified eight conventions that it considers fundamental in terms of the subjects they address, which are as follows:

Freedom of Association and Protection of the right to Organise Convention (1948):

The most fundamental labour rights, such as the right of workers to form and join organisations of their choice without the approval of their employer, the right of workers’ and employers’ organisations to draught their own constitutions and rules, and the right of workers’ and employers’ organisations to form and join federations, were crystallised. It imposes a duty on ILO members to ensure that workers and employers can freely organise without undue interference from administrative authorities. 

Right to organise and collective bargaining convention (1949):

This document seeks to protect workers and workers’ organisations from anti-union discrimination in the workplace. For example, requiring non-union membership as a condition of employment. It seeks to promote voluntary bargaining between employers or employers’ organisations and workers’ organisations and calls for the development of machinery to facilitate such bargaining.

Forced Labour Convention (1930) and its Protocol (2014)

This document is one of the primary international instruments responsible for the worldwide reduction in forced/compulsory labour. It criminalises the use of forced labour and requires ratifying countries to ensure that it is strictly enforced. Ratifying States must also ensure that forced labour legislation is covered and enforced for all workers, regardless of the nature of their work or the sector of the economy in which they work. This includes taking all necessary steps to end all forms of forced labour, as well as identifying and rehabilitating all victims of such labour.

Abolition of Forced Labour Convention (1957)

This Convention expands on the general prohibition in the preceding document by prohibiting the use of forced labour for political coercion, education, punishment, mobilising labour for economic development, labour discipline, as punishment for strike participation, and as a means of racial, social, national, or religious discrimination.

Minimum Age convention (1973):

This document requires ratifying countries to implement a national policy aimed at effectively eliminating child labour. It also requires states to raise the minimum age for employment/work to a level consistent with young people’s physical and mental development. To that end, ratifying states must submit a declaration stating the minimum age for employment, which cannot be less than 15 years in any case. States whose economies are insufficiently developed to specify a minimum age of 14 years are exempted.

Worst forms of child labour convention (1999):

The term “child” refers to all persons under the age of 18 for the purposes of this Convention. Each member who ratifies this convention is obligated to take immediate steps to eliminate the most heinous forms of child labour. This term refers to practises such as slavery, human trafficking, serfdom, and the use of child soldiers, among others. Member States are required to implement similar programmes in collaboration with employers’ and workers’ organisations.

Equal remuneration convention (1951):

The ratifying states are required by this convention to promote the application of the equal remuneration principle for work of equal value. This means that pay rates for comparable work are established without regard to gender.

Discrimination (employment and occupation) convention (1958):

This convention addresses discrimination based on race, colour, gender, sexual orientation, religion, political opinion, national origin, or social origin. Other distinctions that have the effect of nullifying or impairing equality of opportunity are included. Ratifying states must prevent such discrimination through legislation, educational programmes, and collaboration between employer and worker organisations.

Labor welfare has the following objectives:

• To provide better life and health to the workers
• To make the workers happy and satisfied
• 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, employees 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.

Statuary welfare benefits

• Facilities for sitting: In every organization, especially factories, suitable seating arrangements are to be provided.
• Drinking Water: At all the working places safe hygienic drinking water should 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 employee.
• Canteen facilities: Cafeteria or canteens are to be provided by the employer so as to provide hygienic and nutritious food to the employees.
• 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.
• 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.
• Lighting: Proper and sufficient lights are to be provided for employees 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.
• Rest rooms: Adequate numbers of restrooms are provided to the workers with provisions of water supply, wash basins, toilets, bathrooms, etc.
• Maternity & Adoption Leave: Employees 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 employees for expenses related to hospitalization due to illness, disease or injury or pregnancy.
• Sexual Harassment Policy: To protect an employee from harassment of any kind, guidelines are provided for proper action and also for protecting the aggrieved employee. For more information go through Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

Non Statutory welfare benefits

• Flexi-time: The main objective of the flexitime policy is to provide opportunity to employees to work with flexible working schedules. Flexible work schedules are initiated by employees and approved by management to meet business commitments while supporting employee personal life needs.
• Personal Health Care (Regular medical check-ups): Some of the companies provide the facility for extensive health check-up.
• Employee Assistance Programs: Various assistant programs are arranged like external counselling service so that employees or members of their immediate family can get counselling on various matters.
• Employee Referral Scheme: In several companies employee referral scheme is implemented to encourage employees to refer friends and relatives for employment in the organization.

(i) To establish contacts and hold consultations with a view to maintaining harmonious relations between the factory management and workers

(ii) to bring to the notice of factory management, the grievances of workers, individual as well as collective, with a view to securing their expeditious redress and to act as a Liaison Officer between the management and labour

(iii) To study and understand the point of view of labour in order to help the factory management to shape and formulate labour policies and to interpret these policies to the workers in language they can understand

(iv) To advise on the fulfilment by the concerned departments of the factory management of obligations statutory or otherwise concerning the application of the provisions of the Factories Act, 1948 and the rules made thereunder and to establish liaison with the Inspector of Factories, and the medical services concerning medical examination of employees, health records, supervision of hazardous jobs, sick visiting and convalescence, accident prevention and supervision of safety committees, systematic plant inspection, safety education, investigation of accidents, maternity benefits and workmen’s compensation;

(v) To advise on fulfilment by the management and the concerned departments of the factory of their obligations, statutory or otherwise, concerning regulation of working hours, maternity benefit, compensation for injuries and sickness and other welfare and social benefit measures ;

(vi) To advise and assist the management in the fulfilment of its obligations, statutory or otherwise concerning prevention of personal injuries and maintaining a safe work environment, in such factories where a Safety Officer is not required to be appointed under the enabling provisions under Section 40-B

(vii) To encourage the fonnation of works and joint production committees, co-operative societies, and welfare committees and to supervise their work

(viii) To encourage provision of amenities such as canteens, shelters for rest, creches, adequate latrine facilities, water, sickness and benevolent scheme payments, pension and superannuation funds, gratuity, payments, granting of loans and legal advice to workers

(ix) To help the factory management in regulating the grant of leave with wages and explain to workers the provisions relating to leave with wages and other leave privileges and to guide the workers in the matter of submission of applications for regulating authorised absence;

(x) To advise on provision of welfare facilities such as housing facilities food-stuffs, social and recreational facilities and sanitation and on individual personal problems and on the education of children;

(xi) To advise the factory management on questions relating to training of new starters, apprentices, workers on transfer and promotion, instructors and supervisors; supervision and control of notice board and information bulletins; to further the education of workers and encourage their attendance at technical institutes;

(xii) To suggest measures which will serve to raise the standard of living of workers and in general, promote their well being;

(xiii) Welfare Officers not to deal with disciplinary cases or appear on behalf of the management against workers: No Welfare Officer shall deal with any disciplinary case against a worker or appear before a conciliation office or in a Court or Tribunal on behalf of the Factory management against any worker or workers.

Functions:

Staff Welfare:

Staff Grievances- Giving personal hearing to individual staff regarding their difficulties.

Medical Assistance: Assistance to staff taken ill, providing first aid, and attending to all work related to CGHS. Arrangements are made for annual health check-ups of IA&AS officers.

Assistance to the family of employees: Helping in the admission of children of staff in schools & colleges. Attending to difficulties faced by survivors of the members of deceased employees in settlement of claims and to render help and prepare verification report by personally visiting the family of deceased staff for compassionate appointments. Facilitating scholarship to eligible wards of staff for higher education.

Canteen: Ensuring a clean and hygienic functioning cafeteria serving nutritious food to staff.

Office Amenities: Ensuring proper facilities and amenities like sanitization facilities, safe drinking water, overall hygiene, ladies’ room, etc are made available for the staff.

Retirement & Condolence meet: Retirement function for retirees is organized as and when the occasion arises and arrangements are also made for timely payment for dues of retirees. Condolence meet is also arranged for deceased staff.

Sports & Recreation Activities:

Sports: Organising sports activities like cricket, carom, badminton, table tennis, chess. Encouragement of players for participation in sports. Indoor facilities for carom, table tennis and chess are also provided. This office was selected for the west zone cricket tournament for 8 AG (A&E) offices under the west zone region and the tournament was from 18/02/2020 to 20/02/2020.

Cultural Activities: Organising annual day, fun n fair, holding exhibition to promote the ministry of tribal, etc. Holding the “Shravan Dhara” program to encourage the officials to have singing talent and also has programs to promote dramatics, art, literary and other activities among staff. The annual Picnic is also organized the staff and their children for.antakshari, traditional day, kavi samellan.

Yoga and Gym- Yoga day is celebrated with staff members and also a separate Gymnasium and Yoga room has been arranged for staff welfare.

Activities:

Co-ordination with CPWD: Resolving any civil or electric issue or problem faced by the office by coordinating with CPWD authorities.

Self-directed work teams are groups of employees who combine their talents to work without the influence of traditional manager-based supervision. They work towards company goals just as teams run by a manager do. Typically, self-directed work teams have anywhere from five to 25 members. Because there is not a managerial leader in place, members of a self-directed work team make decisions for the project together, such as setting deadlines and rules regarding the project.

For a self-directed team to excel, the business or corporation needs to provide the team with a stated mission and encourage them to do whatever needs to be done, including making and forming big decisions. It’s also important for leaders to support the team, and establish and provide the boundaries, regulations and principles of the company. Additionally, you’ll need to train the team members with the skills and expertise they need to achieve their goals. It is also important to note that each team should be held responsible for their project failures or successes.

Many teams create a set of rules before the project begins. As challenges arise, team members work together to find solutions and make progress. A self-directed work team works best when management equips them with the right tools and sufficient support. Ultimately, the self-directed team is responsible for their own success.

Advantages of a self-directed work team

Employees may feel a greater sense of satisfaction

Because a limited amount of employees are responsible for the project, they each may feel a greater sense of satisfaction when they complete parts of the project. This is especially true for a smaller self-directed team, as each employee may feel a more potent sense of satisfaction if there are only a few members taking responsibility for a project’s progress.

Employees have more accountability

Employees in a self-directed work team have more accountability for a project’s success than in a traditionally manager-led team, especially if the team is small. This can work as an advantage, as employees may work harder in response to having more personal accountability for the project’s success.

Employees have more freedom to be intuitive

Because a lead manager does not manage the team, employees within have the freedom to take initiative during the project. This decreases limitations in each employee’s ability to build on ideas and propose solutions.

Employees can more effectively use their skills

As members of a self-directed team, employees are free to use their expert skills to move a project forward, sometimes more effectively than in a managed team. For example, assume you’ve built a small team that focuses on programming and quality checking code for a project. One member of this small team has an expert ability in quality checking code, meaning they are able to quality check code much faster than any other employee in your department.

If this project were to be handled by the entire department, the quality-check team may not process the code as quickly or as accurately. In the self-directed team situation, one employee can quality check code far more quickly because of the employee’s expertise. Self-directed teams allow for experts to work on parts of a project that they can handle quickly, without needing a manager’s approval beforehand.

Disadvantages of a self-directed work team

Decision making may take longer

Regardless of team size, some newly formed teams may take longer to decide on major project decisions. Establishing leadership positions before the project begins can help decision-making later go smoothly. Team sociability and communication are two key elements that can help in decision-making, so consider evaluating your team’s efficiency before giving them a major project to handle.

Role-awareness may decrease

While some team members may feel naturally inclined to lead, with no confirmed leader in the system, some employees may find their roles in the project a little unclear. Consider helping establish leadership positions in the team before the project to help prevent any confusion later.

These five features are integral to assemble an effective self-directed team:

Harmony: Since each member of the team is accountable for a particular area of the project, team members should be completely confident that their partners can accomplish their given tasks. Even if all the members of the team are self-directed in the way they work, their assigned tasks are linked to one another, which means they should work in harmony.

Collective Responsibility: Collective responsibility means each member of the team is accountable for their area of interest. They are fully immersed in retaining their role for the project and must be responsible for carrying it out. The success of the project lies on their shoulders alone.

Encouragement: Autonomy is the oil that lubricates the engine of self-directed teams. Each member of the team must have expertise in their area and the ability to pull the handle. They should be able to continue without attempting to pass through the process of approval, which will only be a hindrance in their step and their project. Being efficient and effective for self-directed teams is a part of the productive drive.

Communication: Even if the self-directed teams work independently, communication is the major step in executing a successful project. Having good communication skills will leave no room for error and will only facilitate the success rate of your team.

Shared Goals: The main principle behind an effective self-directed team is that they perform the assigned work independently but toward a shared goal. If this is not defined or properly communicated, then the several moving parts, in their attempt to unite and attain their shared goals, will fail. It is vital from the start that the members of the team are mindful of that shared goal.

Tips for implementing a self-managed team

Provide initial leadership

While self-managed teams typically direct themselves, it can help to provide them with some initial leadership. Consider giving the team a few goals and recommended best practices. As the team continues their work, they can adjust their processes according to their preferences, and you can begin to minimize your direct supervision.

Introduce team-building exercises

Self-managed teams often work best when team members trust and communicate well with one another. If you’re creating a new self-managed team, it may help to organize some team-building exercises at the start of the project. Team-building exercises can help people get to know one another, which may make teams feel more comfortable communicating in the future.

Improve communication channels

After your self-managed team begins their work, consider identifying the tools they need to communicate with each other. For example, if your team members work in the same office space, you might designate an area within the office for them to meet. For teams that operate online, you might implement new software designed for team communication.

Review team performance regularly

It’s a good idea to review the performance of your teams over time to help ensure their meeting project goals. To help your team improve their performance, you might implement methods to improve the functionality of the team, such as suggesting a different way for them to operate or communicate. Depending on the scope of the project, you might review the team’s results every few weeks or months. If your team achieves excellent results consistently, you might offer positive feedback or incentives to reinforce their strong performance.