Importance of employee stock option plans as a method of Participation

An employee stock option (ESO) is a label that refers to compensation contracts between an employer and an employee that carries some characteristics of financial options.

Employee stock options are commonly viewed as a complex call option on the common stock of a company, granted by the company to an employee as part of the employee’s remuneration package. Regulators and economists have since specified that ESOs are compensation contracts.

These nonstandard contracts exist between employee and employer, whereby the employer has the liability of delivering a certain number of shares of the employer stock, when and if the employee stock options are exercised by the employee. The contract length varies, and often carries terms that may change depending on the employer and the current employment status of the employee. In the United States, the terms are detailed within an employer’s “Stock Option Agreement for Incentive Equity Plan”. Essentially, this is an agreement which grants the employee eligibility to purchase a limited amount of stock at a predetermined price. The resulting shares that are granted are typically restricted stock. There is no obligation for the employee to exercise the option, in which case the option will lapse.

ESOPs were given to remunerate senior employees and to acknowledge their proven contribution to the company. However, in modern times, ESOPs are used as compensation and motivational tool as startups can’t afford to spend high salaries in the beginning stage. Employee Stock Options in India has gained immense popularity in the recent times with the emergence of a vibrant startup ecosystem in the country.

Stories of how Infosys, one of the earliest companies to offer ESOPs, created millionaires of employees such as drivers, are very well known.

Employee Stock Option Plans are the plans in which employees get the right to purchase a number of shares (decided by the employer) in lieu of Salary in the company at a discounted price (less than the market price). The option provided under this scheme confers a right but not an obligation on the employee.

Employees have to wait for a certain time period – known as vesting period – before they can exercise the right to purchase those specified number of shares. Upon vesting of options, employees can exercise the options to get shares by paying the pre-determined exercise price.

ESOPs are generally awarded for performance or tenure of the employee with the company. Thus, it serves a two-fold purpose for both the company and the employees.

  1. It acts as a tool of motivation for the employees that once they own a stock they feel responsible for performance of the company, as it determines the value of the stocks of the company.
  2. It helps the employer to retain the company and assure a good level of performance in the work.

Advantages of esop

  • ESOPs can be treated as a retainership instrument for small businesses as there is a lock in period for exercising the right to purchase the shares. Thus, a business can retain its employees. If an employee opts for this option then he has to serve the lock in period to become eligible to exercise it.
  • Getting shares of the company in which they are working gives employees an ownership feeling. They start feeling that they are not employees of the organisation but owners. Also, they get to share the profits of the company in the form of dividends and are motivated to work for the best of the company.
  • Businesses that needs funds and are not in a position to spend hefty amounts can offer this option to their employees in lieu of salary and motivate them to work for the betterment of the company.
  • It is a non-cash compensation tool to compete for the best human resources.
  • It gives an opportunity to corporate to pay without a reduction in book profits.
  • Boosted Morale of Employees.

Disadvantages of esop

  • When the ESOPs are exercised the founders share holding gets diluted.
  • Since, Company is unlisted Company, there are no marketability or liquidity of shares of private company. Hence, there are chances of disputes between employers and employees when employee leaves the organization.
  • There are also chances of disputes while transfer of shares and the value at which shares should be transferred.

Role of industrial Relations Manager in Promoting

Industrial Relations being collectivist and pluralist in its outlook is fully responsible for maintaining a healthy relationship between individual workers, employees and plays a critical role in settlement of various disputes within an organization. An IR manager plays the role of directive leaders and ensures that all the rules and regulations of the employer are strictly followed.

According to Lester, “Industrial relations involve attempts at arriving at solutions between the conflicting objectives and values; between the profit motive and social gain; between discipline and freedom; between authority and industrial democracy; between bargaining and co-operation and between conflicting interests of the individual, the group and the community.”

Majority of responsibility of an industrial relations manager involves maintaining good relationships between the employees and management. There are two other words usually used in conjunction with industrial relations which are employee relations and labour relations. Even though the terms usually refer to the relationship with employees all the people connected with the organizations like employees’ customers union members governing agencies and stakeholders are directly or indirectly involved. So, we can classified industrial relation Management as three category. That are Employee Relation Management, Labour Relation Management and Customer Relation Management.

Employee Relation Management

When the number of employees is less it is often easy to manage the relationships but larger companies can have a dedicated human resource manager who can handle the industrial relations easily. Managers having expertise in handling industrial relations usually study and resolve problems which can affect productivity and poor performance related to misconduct by employees. Managers handling industrial relations usually communicate effectively and manage employees through motivation. Industrial relationship managers also adopt employee recognition programs after discussion with top level managers. Safety measures concerning the employees are monitored by industrial relation managers for improved productivity.

Labor Relation Management

Labor relations concern with the mutual collaboration between the top management level and union members among workers. Some countries give the right to employees to form the union for taking part in collective bargaining through negotiation tasks. Small business organizations usually do not have labor unions while large organizations find it easy to have the policies spread among employees through communicating with representatives.

Customer Relation Management

Small business organizations will have better communication with clients due to the lower number of a workforce which eventually leads to good relationships. Industrial relations manager sometimes study and recognize te need of buyers and suggest ways of improving customer relations. Surveys through questionnaires are often employed for gathering information which is then set as a framework which is conveyed to the workers for the better understanding of customer demands. When staff members are given training for improving product quality it also helps in building good relationships. e for goods and services.

How to face these challenges

  1. To deal with Trade Unions, Contractors, labours, IR managers should minimize the use of jargons and they should try to communicate in simple language and if possible try to communicate in local language to avoid any confusion.
  2. Review different labour laws, civil laws and consult with the company’s legal representative to assure if the company is in compliance with all of these regulations.
  3. Always try to listen closely to the employee’s concern. It is not always necessary

to give judgement or suggestions and to enforce certain policies, which are not in law.

  1. Sometimes to settle down dispute, An IR manager can take the decision on the basis of their intuition.
  2. Job rotation policy or transfer of the workers are another way to settle down the dispute among the workers or employees.
  3. They should not try to check the workmen to form unions or groups, which may lead to aggression among them.

A healthy employee relationship is essential for the employees to find their work interesting and perform their level best. It is important for everyone to understand that one goes to his organization to work and conflicts must be avoided as it is nothing but a mere waste of time. Employees must be comfortable with each other and work in unison towards a common goal. An individual cannot remain tightlipped and work for infinite hours, he needs people around to talk to and discuss his ideas.

One must have friends at the workplace whom he can trust well and share his secrets without the fear of them getting leaked. This way the employees feel motivated and enjoy going to office daily. They do not take frequent leaves and strive hard to live up to the expectations of the management. For an organization to perform well, it is important that the employees are friendly with each other and avoid criticism, backstabbing at work, a strong reason to spoil the relationship among the employees.

The team leader or the manager plays an important role in promoting healthy relation at workplace:

It is essential that the supervisor assigns challenging tasks to his team member as per his specialization and interest. The individual should have interest in the work; otherwise he would treat it as a burden and unnecessarily crib about things. It is important that the team leader understands his team members well. Try to find out their interests and what all they expect from the organization. While developing their KRAs it is always better if the team leader calls everyone and invites suggestions from them. Let them decide what best they can perform. This way the employees would never blame each other or their superior later as they themselves have decided on the roles and responsibilities. Encourage them to willingly accept the challenge. They would strive hard for a better output without fighting and finding faults in each other.

A team leader should be a role model to his team members. He should treat each and every individual as one and avoid partialities at work. Do not give anyone a special treatment just because he drops your son to school every day or says a yes to whatever you say. Appreciate if someone has done exceptionally well but do make sure to correct him if he is wrong somewhere. The team leader should not be rude or harsh to anyone. There is a correct way for everything and one should not insult any team member. It is strictly unethical. Sit with him and make him realize his mistakes. He would definitely look up to you in future.

The superior must not act pricy and should always be accessible to his employees. The individuals must have the liberty to walk up to their immediate bosses in case of a doubt and clear things. The hierarchy should not be too complicated as it leads to confusions and disputes among employees.

The manager must ensure that all important communication takes place on an open forum for everyone to get a common picture. Problems arise when communication is done on a one to one basis. Call everyone together so that all the members are clear as to what is expected out of them and what their colleagues are up to. Communication should be transparent for an effective employee relation. Any employee should not feel neglected or left out. If the team leader wants to pass on any information to his team members, he must send a mail keeping all the related members in the loop.

As a team leader it is one’s prime responsibility to encourage healthy competition at work. Competition is mandatory for an individual’s growth but it should not turn friends to foes. Motivate them constantly to perform better than the other but make sure there are no useless gossips in your team. If you find any of your team members criticizing or making fun of anyone, stop him immediately. Do not provoke any individual to fight, instead intervene and try to resolve the conflict as soon as possible.

Make sure all your team members take their lunch together and you are also a part of it. Don’t discuss work that time. Let them enjoy. Encourage everyone to talk to each other and participate in discussions. Do take the initiative to ask about their families or personal lives as well. They would feel attached to you. If you find any two of your team members not getting along well with each other, make sure both of them work together on the same assignment. They would not be left with any choice than to talk to each other and discuss things. Make them sit together on adjacent workstations so that the comfort level increases.

The team leader should be neutral to his team members and make sure they enjoy a healthy relationship with him as well as their fellow team members for a better output. A team leader should try his level best to bring his team members closer and bind them together.

The importance of industrial relation is as follows:

  1. Increased Production:

Healthy cordial relationship between the work force and the employer and management and amongst the workers within the workplace improves the workers’ productivity and efficiency. It motivates the workers to contribute their best towards attainment of organisational objectives. This leads to increase in production in the organisation.

  1. Reduction in Industrial Disputes:

Good industrial relation helps in reducing the industrial disputes. Good Industrial relationship removes dissatisfaction among the workers. Adequate financial and non-financial benefits, provision of employee participation in sharing of profits and of management and decision making, improved bargaining capacity through mutual negotiations and consultation with the management provides satisfaction to the workers.

Satisfied workers are less inclined towards entering into conflict with the management on issues like low wages, long work hours, and unhealthy work environment. Thus, industrial unrest can be avoided.

  1. Uninterrupted Production:

The most important benefit of industrial relations is that it ensures uninterrupted production. Reduced industrial dispute, industrial unrest, strike, lock outs can be avoided through good industrial relation. This ensures smooth running of the organization and continuous production.

  1. Improves Morale:

Good industrial relation boosts the morale of the employees. Employees feel that they are part of the organization and their contribution will improve productivity of the organization. Good industrial relation brings about realization among the employees that gain to the organization will not only benefit the employer but will benefit them as well. This makes the workers work with zeal, energy and efficiency.

  1. Effective Utilization of Resources:

Good industrial relation helps in effective utilization of man, money and material. Improved employee morale, industrial peace, recognition of employee’s interest and reconciliation of employer’s and employee objectives and interest increased production with minimum wastage of resources.

Workers Participation in Management Concept, Pre-requisites

WPM means different things to different people depending upon their objectives and expectations. Thus, WPM is an elastic concept. For example, for management it is a joint consultation prior to decision making, for workers it means co-determination, for trade unions It is the harbinger of a new order of social relationship and a new set of power equation within organisations, while for government it is an association of labour with management without the final authority or responsibility in decision making.

According to the ILO:

“Workers’ participation may, broadly be taken to cover all terms of association of workers and their representatives with the decision-making process, ranging from exchange of information, con­sultations, decisions and negotiations to more institutionalized forms such as the presence of work­ers’ members on management or supervisory boards or even management by workers themselves as practised in Yugoslavia”.

In Yugoslavia, WPM is governed by the Law on Workers’ Management of State Economic Enterprises and Higher Economic Association. The Act consists of a three-tier participation struc­ture: collective bargaining, workers’ council, and hoard of management.

In fact, the basic reason for differences in perception of WPM is mainly due to the differential pattern of practices adopted by various countries while implementing workers’ participation in man­agement.

For example, in Great Britain and Sweden, WPM is in the form of Joint Consultation through Joint Consultative Committees, Works Committees in France, Co-determination Committees in West Ger­many, Joint Work Council in Belgium, Workers’ Council and Management Board in Yugoslavia and Union Management Co-operation in USA.

In India, WPM is in the form of, what we call Labour Management Cooperation and Workers’ Participation in Management. It is implemented through the agencies like Works Committees, Joint Management Councils (JMCs) Shop Councils, Unit Councils and Joint Councils. Notwithstanding, these different forms of WPM differ only in degree, not in nature.

Be the perceptual differences as these may, WPM is a system of communication and consulta­tion, either formal or informal, by which the workers of an organisation are kept informed, as and when required, about the affairs of the undertaking and through which they express their opinion and contribute to decision-making process of management.

Characteristics:

The following are the main characteristics of WPM:

  1. Participation implies practices which increase the scope for employees’ share of influence in decision-making process with the assumption of responsibility.
  2. Participation presupposes willing acceptance of responsibility by workers.
  3. Workers participate in management not as individuals but as a group through their representatives.
  4. Worker’s participation in management differs from collective bargaining in the sense that while the former is based on mutual trust, information sharing and mutual problem solving; the latter is essentially based on power play, pressure tactics, and negotiations.
  5. The basic rationale tor worker’s participation in management is that workers invest their Iabour and their fates to their place of work. Thus, they contribute to the outcomes of organization. Hence, they have a legitimate right to share in decision-making activities of organisation.

Objectives:

The objectives of WPM are closely netted to the ration-able for WPM. Accordingly, the objectives of WPM vary from country to country depending on their levels of socio-economic development political philosophies, industrial relations scenes, and attitude of the working class.

To quote, the objective of WPM is to co-determine at the various levels of enterprises in Germany, assign the final to workers over all matters relating to an undertaking in Yugoslavia, promote good communication and understanding between labour and management on the issues of business administration and production in Japan, and enable work-force to influence the working of industries in China, for example.

In India the objective of the government in advocating for workers’ participation in management, as stated in the Industrial Policy Resolution 1956, is a part of its overall endeavour to create a socialist society, wherein the sharing of a part of the managerial powers by workers is considered necessary.

The objective of WPM, as envisaged in the Second Five Year Plan of India is to ensure:

  1. Increase in productivity for the benefit of all concerned to an enterprise, i.e., the employer, the employees and the community at large.
  2. Satisfaction of worker’s urge for self-expression in the matters of enterprise management.
  3. Making employees better understood of their roles in the organisation.

In ultimate sense, the objective of WPM in India is to achieve organizational effectiveness and the satisfaction of the employees.

Accordingly, the objectives of WPM in India are to:

  1. Promote mutual understanding between management and workers, i.e., industrial harmony.
  2. Establish and encourage good communication system at all levels.
  3. Create and promote a sense of belongingness among workers.
  4. Help handle resistance to change.
  5. Induce a sense among workers to contribute their best for the cause of organisation.
  6. Create a sense of commitment to decisions to which they were a party.

Levels of Participation:

Having known the objectives of WPM, the question then is to what extent workers can participate in decision-making process. In other words, it is important to know the extents/levels of co-determination in an organisation.

Viewed from this angle, Mehtras has suggested five levels of workers’ participation ranging from the minimum to the maximum. Since these levels of workers’ influence the process and quality of decision making in an organisation. We are therefore highlighting here these levels briefly ranking them from the minimum to the maximum level of participation.

Informative Participation:

This refers to management’s information sharing with workers on such items those are concerned with workers. Balance Sheet, production, economic conditions of the plant etc., are the examples of such items. It is important to note that here workers have no right of close scrutiny of the information provided and management has its prerogative to make decisions on issues concerned with workers.

Consultative Participation:

In this type of participation, workers are consulted in those matters which relate to them. Here, the role of workers is restricted to give their views only. However the acceptance and non-acceptance of these views depends on management. Nonetheless, it provides an opportunity to the workers to express their views on matters involving their interest.

Associative Participation:

Here, the role of the workers’ council is not just advisory unlike consultative participation. In a way, this is an advanced and improved form of consultative participa­tion. Now, the management is under a moral obligation to acknowledge, accept and implement the unanimous decision of the council.

Administrative Participation:

In the administrative participation, decisions already taken are implemented by the workers. Compared to the former three levels of participation, the degree of sharing authority and responsibility by the workers is definitely more in this participation.

Decisive Participation:

Here, the decisions are taken jointly by the management and the workers of an organisation. In fact, this is the ultimate level of workers’ participation in management.

The success of workers portion in management depends upon the following conditions:

(1) The attitude and outlook of the parties should be enlightened and impartial so that a free and frank exchange of thoughts and opinions could be possible. Where a right kind of attitude exists and proper atmosphere prevails the process of participation is greatly stimulated.

(2) Both parties should have a genuine faith in the system and in each other and be willing to work together.

(3) The experiment of labour participation in management must be given a wide publicity in order that the idea of participation is ingrained in the minds of those who are to implement the scheme.

(4) Participation should be real. The issues related to increase in production and productivity, evaluation of costs, development of personnel, and expansion of markets should also be brought under the jurisdiction of the participating bodies. These bodies should meet frequently and their decisions should be timely implemented and strictly adhered to.

(5) Objectives to be achieved should not be unrealistically high, vague or ambiguous but practicable of achievement and clear to all.

(6) Form, coverage, extent and level of participation should grow in response to specific environment, capacity and interest of the parties concerned.

(7) Participation must work as complementary body to help collective bargaining, which creates conditions of work and also creates legal relations.

(8) Institutional participation should be discouraged but such participation should be encouraged through changes in leadership styles, communication process, and inter-personal and inter-group relations.

(9) There should be a strong trade union, which has learnt the virtues of unit and self- reliance so that they may effectively take part in collective bargaining or participation.

(10) Multiple unions in one enterprise should be restricted by legislative measures. Similarly, there should be no multiplicity and duplicacy of bipartite consultative machinery at the plant level.

(11) A peaceful atmosphere should be there wherein there are no strikes and lock-outs, for their presence ruins the employees, harms the interest of the society, and puts the employees to financial losses.

(12) Authority should be centralised through democratic management process. The participation should be at the two or at the most three levels.

(13) Programmes for training and education should be developed comprehensively.

(14) Progressive personnel policies should ensure growth of individual workers within industry and proper policies should exist for selection, promotion, compensation, rewards and discipline.

(15) Management should be prepared to give all information connected with the working of the industry and labour should handle that information with full confidence and responsibility.

(16) The workers should become aware of their responsibilities. The leaders should initiate this in them. Similarly, the top management should make the lower echelons to show a new attitude in the light of the new relationship.

(17) The follow-up action on the decisions of the participating forums should be ensured. The government may also set up machinery to act as a watch-dog for implementing the scheme.

(18) Effective two-way communication is a must for the success of the programme. The shorter is the time for communication, the greater is the probability of correct Interpretation.

Workers’ Participation in Management (WPM) Prerequisites

The following are the prerequisites for the successful functioning of the schemes of workers’ participation in management Managements, trade unions and the workers should be concerned with these prerequisites-

(1) There should be mutual trust, faith among all the parties concerned.

(2) There should be progressive management in the enterprise and should recognise its obligations and responsibilities towards workers and trade unions.

(3) There should be strong, democratic and representative union which should represent the cause of workers without neglecting the management’s interest.

(4) There should be closely and mutually formulated, objectives for participation by trade unions and management.

(5) All parties concerned with participative management should feel that they should participate at all levels.

(6) There should be effective communication between workers and management and effective consultation of the workers by the management.

(7) Both the parties should develop a favourable attitude towards the schemes of participative management.

(8) Management and Government should provide training to all the parties concerned to prepare them for participative management.

(9) Both the parties of anticipative management should be conscious of the benefits of the schemes.

Agencies for Labour Welfare: Central Government, State Government, Employers, Trade Union

Labour welfare schemas have the following benefits:

(i) Workers’ efficiency is considerably enhanced.

(ii) Workers begin to feel interested in their work when they find that they are being well looked after by their employers. Thus, their morale is raised and industrial relations improve.

(iii) Labour turnover and absenteeism rates decline when the workers find the work-place congenial and the employer sympathetic towards them.

(iv) On humanitarian ground too, labour welfare is commendable, because it shows faith in the basic human values of life.

(v) From the social stand-point, labour welfare ensures healthier and more enlightened citizens.

Labour Welfare activities are now not exclu­sively within the jurisdiction of the employers, governments and trade unions. Strictly not with a view to rendering welfare services to workers as defined in the industrial dictionary, a number of service organisations, national and international in character, have come forwarded to uplift the conditions of the toiling masses. To educate them, to house them properly, to help them in medical facilities and health matters, the humanitarian institutions have been rendering no less service to­day in India.

In spite of all the efforts so far taken for the welfare of workers, it can be frankly admitted that there is yet enough scope and necessity for the welfare measures of the workers. Workers themselves have to press for their welfare on their unions as well as on the governments.

In India, Labour Welfare is a vast area of activ­ities. Welfare in its comprehensive sense is very difficult for a country like ours to achieve. Prob­lems are many to the acquisition of welfare facili­ties. Problems and obstacles, however difficult they are, must have to be solved and overcome, to establish industrial democracy and industrial peace.

As to the problems, housing poses a serious one. To this can be added the problem of accidents which must cover any programme of welfare to workers. Statutory measures for safety of workers have been undertaken and training in safety is also being imparted. Industrial legislations should be made more comprehensive in providing measures for safety and training in safety.

As to industrial housing problems, a national housing programme has been chalked out. Plantation La­bour Housing Scheme, Slum Clearance Scheme, Land Acquisition and Development Schemes, Mid­dle Income Group Housing Scheme, Rental Housing Schemes for State Government Employees, Social Housing Schemes all are on the list of govern­ment activities.

Subsidised Industrial Housing Scheme, Low Income Group Housing Schemes are additions to the Housing Schemes already under­taken by the governments, both Central and State.

The Code of Efficiency for the welfare of work­ers, with various suggestions for improvement of industrial relations and higher productivity and imposition of obligations on the part of the mana­gement for securing better standards of living of the workers did not receive equal attention and re­spect from all the labour wings of the political parties.

Labour Welfare in India: Necessity

The necessity of labour welfare work in India can easily be realized if we look into the working conditions of the labour class in Indian industries. India, an industrially backward country, is in its developing stage. The place of labour in industries in India is not recognised. The principles of personnel management and industrial relations have not been developed in India except in few big industrial units. Commodity concept of labour still prevails in the country.

Thus the scope of labour management relations has not been much widened in India, while in Western countries, the labour is regarded as the Partner in the affairs of the industry. The attitude of employers is sympathetic to workers in western countries and they provide various welfare facilities as a measure to improve industrial relations and better working conditions.

The working conditions in Indian industries are not satisfactory. The workers have to work for long hours under unhealthy surrounding, and have no means to remove the drudgery of their lives. They become easy victims of drink, gambling and other vices, in the uncongenial environment of urban industrial life. A contented, stable and efficient labour force cannot be built up without an improvement in the conditions of their life and work in industrial centres.

The workers in India are poorer than the workers in other western countries and as such they cannot be expected to spend anything for their own welfare. Our labourers, being illiterate and generally blamed for being irresponsible and lazy, require a lot of inducements and better working conditions. It is axiomatic that in all pursuits a high standard of efficiency can be expected only from persons who are physically fit and free from all worries and that is from persons who are properly housed, fed and clothed.

Industrial harmony can only be maintained when the workers feel that they are adequately remunerated for the work and are treated fairly by the employer. Much of the irritation and frictions which embitter industrial relations is due to the feeling that they are not being received by the employer properly. If the labourers are properly behaved and certain amenities are supplied, they feel satisfied and find no scope for resentment against employers.

The money spent on labour welfare work by the employer is bound to react directly or indirectly to their own benefits and to the direct benefit of the employees. If work conditions are improved it will certainly improve the health and efficiency of the workers and which, in turn, increase the production and the productivity of workers. The employer may contribute something towards the amenities of the workers to which the employees spend nothing in India because of their poor financial conditions.

Labour welfare force, lower absenteeism and labour turnover. These results may not have been achieved if the benefits are extended in the form of cash wages, because it may be spent on drinking, gambling and extravaganza. It seeks to promote a better understanding between the employer and the employees.

The inefficiency and bad habits of Indian workers are not so much due to his own character but it is the result of the environment which must be improved to make them good citizens. It can, thus, be said that if suitable welfare activities are undertaken in this country, there is no doubt that Indian labourers cannot remain inefficient than the average worker in the west.

  1. Central Government:

Ours is a welfare state wedded to the policy of doing welfare to the people of the country. For the economic rejuve­nation of the country, the toiling masses must be taken care of, their lots must be improved. In this regard, the Government has an active role to play.

The Government has to come forward to bring about intellectual, physical, moral and economic betterment of the workers, so that their whole-hearted and willing co-operation may be readily avail­able for the economic upliftment of the county in our Plan objectives, workers have been accepted as an essential part of the Apparatus of industrial and economic administration of the country.

The Central Government has paid attention to improve the condi­tions of workers. Various enactments have been promulgated to safe­guard the interests of workers, to extend to them economic benefits and social security.

The Factories Act, for example, is a bold attempt to extend various facilities to factory workers their housing facilities, economic benefits, social security’s and physical safety etc. The Mines Act is another piece of legislation that aims at providing welfare to mine workers.

So far as mines are concerned, Coal Mines Labour Welfare Fund has been instituted to boost the morale of coal mine workers under the Coal Mines Labour Welfare Fund Act. Similarly, Mica Mines Labour Welfare Fund and Iron Ore Mines Labour Wel­fare Fund have been created by specific Acts of the Central Govern­ment. Again, we find Plantation Labour Act for the welfare of planta­tion workers.

Besides the various Acts passed for the welfare of labour in mines, plantations and factories, the Central Government has kept its Labour Ministry alive to the conditions of workers. Measures have now been adopted to provide medical aid, legal and financial aid to workers un­der various schemes.

To ensure industrial safety, various precaution­ary measures have also been enforced. Prevention of the possibility of accidents has been one of the objectives of the Government’s welfare measures and actually the incidence of accidents has come down.

The Government of India has introduced an industrial housing scheme for the accommodation of industrial workers. Social Security legislations such as The Workmen’s Compensation Act, Maternity Benefit Act and The Employees’ State Insurance Act have been in force.

  1. State Government:

The State Governments in India were more or less indifferent to labour welfare, prior to independence. But now vari­ous State Governments are very alive to the conditions of labour and are up and doing for the upliftment of the lots of the workers.

There are popular governments in some states where workers are adequately taken care of Labour fronts of different political parties are now suf­ficiently strong to press the demands of workers to the Government and the link between the State Governments and the labour wings of political parties is so close that various facilities are now being made available to the workers through the State Government’s machinery.

  1. Employers:

Employers in India today have started realizing that they should identify their interest with those of the employees. No pru­dent management can now ignore the interests of their workers and expect to reap the benefits of higher labour productivity.

So, for their own interest, employers are being compelled to adopt welfare measures for the workers. There are only a few employers in India who have been sympathetic to labour welfare but others are extending various benefits to workers only under compulsion.

Several industries such as cotton, jute, textile, engineering, sugar, cement, glass, chemical etc. have been brought under legislative measures to give facilities provided by different industries either under legal compulsion or under union pressure.

We can say that employers in India with their professional training background are becoming more and more conscious about the workers whom they now consider the most essential tool to gear up their organisational activities.

Employers who are still maintaining a negative attitude or an indifferent attitude towards workers are surely to pay for their foolishness. Days have changed. All over the world is the slogan for workers to unite. Moreover, employers who fail to un­derstand the potentialities of the labour force, the fullest utilisation of which can bring miraculous results for the organisation, are sure to suffer.

  1. Trade Union:

Last but not the least important agent for the welfare of workers is the “Workers’ union.” Conflicts between labour and capital existed since industrialisation, they still exist and will con­tinue to exist. The complete harmony and amity between the two op­posite-interest groups cannot be achieved.

Not only in India, but nowhere in the world has industrial peace been ensured? Here is the role for the Trade Union to play in the matter of bargaining. Various facilities of different nature economic, social, cultural are made available to workers by Trade Unions.

The Indian Trade Unions have not yet been able to do much to ameliorate the lot of their members. Their participation in this sphere has been mainly through their association with the Labour Welfare Advisory Committees constituted by the Governments.

It is worthwhile to mention that trade unions in the textile industry (Textile Labour Association) and the Mazdoor Sabha have made provisions for vari­ous welfare facilities to the workers.

Educational and cultural upliftments through trade unions have been made possible. With the change in the attitude of the employers (many of whom are govern­ments themselves), the nature of trade unions in India from mili­tancy to conciliatory is now noticeable.

Various welfare services are now made available to the workers through Trade Unions after the trade union leaders’ direct discussions and deliberations with the em­ployers across the table.

However, trade unions should take some mea­sures for the welfare of workers. They should come forward to assist the employers and the Government in formulation and administration of welfare schemes. To find out the needs of the workers and to bring them to the notice of the employers should also come under the pur­view of trade union activities.

A modern Trade Union has to educate its members, organize for them various inexpensive programmes and to act as a watch-dog of workers’ interests. Trade Unions have, as a matter of fact, a great role to play for the welfare of the workers.

Labour Welfare in India 8 Important Labour Welfare theories in India

  1. Functional Theory:

This theory assumes that employee welfare is a part of the personnel/HR function of the organization. In this regard, organizations depute a labour welfare officer or manager to manage the welfare activities in the organization.

  1. Social Theory:

This theory assumes that organizations take benefits, resources and raw materials from the society for producing their products and services and by providing labour welfare activities in their organization and outside the organization (Extra Mural Activities) they are showing their concern for the development and wellbeing of the society.

  1. Policing Theory:

This theory assumes that organizations provide ample opportunities for owners and managers of capital to exploit workers in unfair ways like by compelling employees with long working hours, by paying low wages, by not improving the quality of life at the workplace. The statutory norms and legislations provided by the state with respect to welfare activities acts as a stringent measure to prevent these unfair activities towards the workforce.

  1. Religion Theory:

From the investment perspective, the religion theory implies that by committing towards welfare activities the management could reap the benefits of employee loyalty and trust in the near future. On the other hand, from the atonement perspective the religion theory implicates that it is the moral responsibility of the management to be concerned for the wellbeing of the employees.

  1. Philanthropic Theory:

This concept mainly proposes that labour welfare should provide good working conditions, rest rooms, drinking water facilities, common rooms, canteens etc. that would contribute to improve the standard of living and wellbeing of the employees in the organization.

  1. Paternalistic Theory:

According to this theory, the social responsibility and the responsibility of an employer of an organization with respect to the employee welfare is conceived as a “paternalistic duty or responsibility” towards the society and the employees who are being employed in the organization.

  1. Placating Theory:

Placating theory considers that labour welfare initiatives taken by an organization are like appeasement and its works for the management particularly when the workers are organized and violent in terms of charting their demands from the management.

  1. Public Relations Theory:

This concept assumes that labour welfare can create a good corporate image and enhance the employability brand of the organization.

Boredom at Workplace

In conventional usage, boredom is an emotional and occasionally psychological state experienced when an individual is left without anything in particular to do, is not interested in their surroundings, or feels that a day or period is dull or tedious. It is also understood by scholars as a modern phenomenon which has a cultural dimension. “There is no universally accepted definition of boredom. But whatever it is, researchers argue, it is not simply another name for depression or apathy. It seems to be a specific mental state that people find unpleasant a lack of stimulation that leaves them craving relief, with a host of behavioural, medical and social consequences.” According to BBC News, boredom “can be a dangerous and disruptive state of mind that damages your health”; yet research ” suggests that without boredom we couldn’t achieve our creative feats.”

In Experience Without Qualities: Boredom and Modernity, Elizabeth Goodstein traces the modern discourse on boredom through literary, philosophical, and sociological texts to find that as “a discursively articulated phenomenon, boredom is at once objective and subjective, emotion and intellectualization not just a response to the modern world but also a historically constituted strategy for coping with its discontents.” In both conceptions, boredom has to do fundamentally with an experience of time and problems of meaning.

In the workplace

Boreout is a management theory that posits that lack of work, boredom, and consequent lack of satisfaction are a common malaise affecting individuals working in modern organizations, especially in office-based white collar jobs. This theory was first expounded in 2007 in Diagnose Boreout, a book by Peter Werder and Philippe Rothlin, two Swiss business consultants. They claim the absence of meaningful tasks, rather than the presence of stress, is many workers’ chief problem.

A “banishment room” (also known as a “chasing-out-room” and a “boredom room”) is a modern employee exit management strategy whereby employees are transferred to a department where they are assigned meaningless work until they become disheartened enough to quit. Since the resignation is voluntary, the employee would not be eligible for certain benefits. The legality and ethics of the practice is questionable and may be construed as constructive dismissal by the courts in some regions.

Boredom syndrome is a psychological disorder that causes physical illness, mainly caused by mental underload at the workplace due to lack of either adequate quantitative or qualitative workload. One reason for bore-out could be that the initial job description does not match the actual work.

This theory was first expounded in 2007 in Diagnose Boreout, a book by Peter Werder and Philippe Rothlin, two Swiss business consultants.

Consequences for Employee

Consequences of boreout for employees include dissatisfaction, fatigue as well as ennui and low self-esteem. The paradox of boreout is that despite hating the situation, employees feel unable to ask for more challenging tasks, to raise the situation with superiors or even look for a new job. The authors do however propose a solution: first, one must analyse one’s personal job situation, then look for a solution within the company and finally if that does not help, look for a new job. If all else fails, turning to friends, family, or other co-workers for support can be extremely beneficial until any of the previously listed options become viable.

Consequences for Business

According to Prammer, boreout can also have a variety of effects on businesses:

  • Whereabouts of dissatisfied employees, who do not work because they have internally terminated, cost the company money.
  • If employees actively quit internally, they can damage the operation by demonstrating their ability to mentally restore the employment contract.
  • The qualification of the employee is not recognized (the company can not use its potential).
  • The qualified employee changes jobs (and takes his experience), which can endanger entire business locations.
  • As long as a recession continues, the affected employee remains in the company and leaves the company at the appropriate opportunity. In-house, a problem of distribution of work orders arises.
  • Tabooing causes real problems to go undetected.
  • Whole generations of employees are lost (because they have no opportunity to fully realize their potential).

Fatigue at Work: Meaning, Causes and Symptoms of Fatigue

Fatigue is a feeling of tiredness. It may be sudden or gradual in onset. It is a normal phenomenon if it follows prolonged physical or mental activity, and resolves completely with rest. However, it may be a symptom of a medical condition if it is prolonged, severe, progressive, or occurs without provocation.

Physical fatigue is the transient inability of muscles to maintain optimal physical performance, and is made more severe by intense physical exercise. Mental fatigue is a transient decrease in maximal cognitive performance resulting from prolonged periods of cognitive activity. Mental fatigue can manifest as somnolence, lethargy, or directed attention fatigue.

Fatigue and ‘feelings of fatigue’ are sometimes confused. Unlike weakness, fatigue usually can be alleviated by periods of rest.

Fatigue is often described as a lack of energy and motivation both physical and emotional. It is different than sleepiness or drowsiness, which describe the need for sleep. Fatigue is also a response to physical and mental activities. Normally, fatigue can be resolved with rest or reducing activity. Fatigue is a common complaint related to health issues. Notably, it is a symptom and not a specific disease or health condition. Many illnesses cause fatigue, and the symptoms can be physical, psychological, or a combination of both.

Physical fatigue

Physical fatigue, or muscle fatigue, is the temporary physical inability of muscles to perform optimally. The onset of muscle fatigue during physical activity is gradual, and depends upon an individual’s level of physical fitness other factors include sleep deprivation and overall health. Fatigue can be reversed by rest. Physical fatigue can be caused by a lack of energy in the muscle, by a decrease of the efficiency of the neuromuscular junction or by a reduction of the drive originating from the central nervous system. The central component of fatigue is triggered by an increase of the level of serotonin in the central nervous system. During motor activity, serotonin released in synapses that contact motoneurons promotes muscle contraction. During high level of motor activity, the amount of serotonin released increases and a spillover occurs. Serotonin binds to extrasynaptic receptors located on the axon initial segment of motoneurons with the result that nerve impulse initiation and thereby muscle contraction are inhibited.

Muscle strength testing can be used to determine the presence of a neuromuscular disease, but cannot determine its cause. Additional testing, such as electromyography, can provide diagnostic information, but information gained from muscle strength testing alone is not enough to diagnose most neuromuscular disorders.

People with multiple sclerosis experience a form of overwhelming lassitude or tiredness that can occur at any time of the day, for any duration, and that does not necessarily recur in a recognizable pattern for any given patient, referred to as “neurological fatigue”.

Mental fatigue

Mental fatigue is a temporary inability to maintain optimal cognitive performance. The onset of mental fatigue during any cognitive activity is gradual, and depends upon an individual’s cognitive ability, and also upon other factors, such as sleep deprivation and overall health. Mental fatigue has also been shown to decrease physical performance. It can manifest as somnolence, lethargy, or directed attention fatigue. Decreased attention may also be described as a more or less decreased level of consciousness. In any case, this can be dangerous when performing tasks that require constant concentration, such as operating large vehicles. For instance, a person who is sufficiently somnolent may experience microsleep. However, objective cognitive testing can be used to differentiate the neurocognitive deficits of brain disease from those attributable to tiredness.

The perception of mental fatigue is believed to be modulated by the brain’s reticular activating system (RAS).

Fatigue impacts a driver’s reaction time, awareness of hazards around them and their attention. Drowsy drivers are three times more likely to be involved in a car crash and if they are awake over 20 hours, is the equivalent of driving with a blood-alcohol concentration level of 0.08%.

Symptoms

According to a 2019 report in the journal Biological Research for Nursing, fatigue can be defined as an “overwhelming, debilitating, and sustained” exhaustion that makes it harder to carry out activities and function. Family practice physicians report that at least 20% of their patients report fatigue and up to 35% of adolescents report fatigue that occurs at least four days a week.

Men and women will describe fatigue differently. For example, men may say they are feeling tired, whereas women may report their fatigue as a feeling of anxiety or depression. People may also describe fatigue using a variety of terms, including feeling exhausted, weary, listless, or rundown.

People with fatigue experience one or more of three primary complaints. These vary person-to-person. They are:

  • Lack of motivation or the ability to start activities
  • Getting tired easily
  • Experiencing mental fatigue or problems with concentration or memory

Often, fatigue is a symptom with a gradual onset, meaning it comes on slowly and gets worse with time. Most people who experience fatigue may not be aware early on how much energy they are losing. They can only determine this when they try to compare their ability to perform tasks from one-time frame to another.

Further, they may think fatigue is a common symptom due to aging, being busy or overworked, not getting enough sleep, or a combination of all of these and ignore the symptom.

Causes

Normal

Fatigue is a normal result of working, mental stress, overstimulation and under stimulation, jet lag, active recreation, boredom, and lack of sleep.

Acute

Causes of acute fatigue include depression; chemical causes, such as dehydration, poisoning, low blood sugar, or mineral or vitamin deficiencies. Fatigue is different from drowsiness, where a patient feels that sleep is required.

Temporary fatigue is likely to be a minor illness like the common cold as one part of the sickness behavior response that happens when the immune system fights an infection.

Prolonged

Prolonged fatigue is a self-reported, persistent (constant) fatigue lasting at least one month.

Chronic

Chronic fatigue is a self-reported fatigue lasting at least six consecutive months. Chronic fatigue may be either persistent or relapsing. Chronic fatigue is a symptom of many diseases and conditions.

Hazard Audit Process

Safety audits are essential for any industry because they are procedures designed to keep people safe, improve operational efficiency and reduce maintenance costs and the findings are used to improve safety, help with equipment scheduling, set budgets, among other things.

A safety audit is a structured assessment and evaluation of how workplace activities can affect health and safety. It helps organizations to evaluate and optimize their health and safety programs and improve safety management.

Safety audits are not synonymous of safety inspections because while the first examine and evaluate whether safety programs and practices are meeting the organization’s goals, the last are periodical inspections that look for hazards, risks, and other issues that might prevent a company from operating safely.

The purposes of carrying out safety audits are establishing whether the company is in compliance with safety legislation and identifying weaknesses and deficiencies in their safety programs and processes. A safety audit identifies different levels of risk in all the particular areas of an organization. Safety audits can help the workplace to become safer and improve the organization’s health and safety procedures.

How to conduct a safety audit

Every organization should conduct periodic workplace safety audits. It is very important to have this sort of assessments to ensure that the work environment is protected and prepared to handle any hazardous occurrence that may happen.

The following steps are vital to carry out effective workplace safety audits.

Determine the scope and objectives of the audit

Checking standards and codes that apply to the audited processes can help the audit team members set goals and add to their skill sets. The results of previous audits can be another source of useful information especially if an objective is to analyse if the recommendations of previous audits have been implemented and are working.

Create a report with recommended actions

After the audit, the person or team in charge of the assigment should compile all notes into a report that summarizes findings. The report should include a list of recommended actions based on the findings.

Set priority actions

Audits can reveal the need for major corrective actions and minor actions that the company should consider to implement in the short or long term. The audit team should work with managers and supervisors to set priorities based on the finding. Issues that possess biggest risks should receive priority over items with lower risks.

Propose actions to optimize health and safety

After finishing the assignment, the team in charge should make some recommendations based on the data obtained and assign a completion and review date to all corrective actions to be implemented.

Publish safety audit results

Posting audit results also helps everyone within an organization understand any changes that may be necessary and how those changes will increase their personal safety. It also acknowledges the audit team, as well as the contributions of managers and employees who were part of the process.

Final Words

Conducting safety audits require time and effort, however, they provide worthwhile results that can take a company to the next level in matters related to health and safety. Audits can also trigger proactive safety changes that can help prevent employee injuries, illness and death.

Workplace safety audits attempt to identify whether safety management systems are operating effectively and efficiently. In general, workplace injuries and accidents are the result of minor issues that could have been identified by conducting workplace safety audits earlier. Therefore, these assessments protect both employees and the organizations by reducing injuries and operating costs and, as a result of this, increasing productivity.

Hazards at Workplace

Every workplace has hazards. An employer has a legal responsibility to look after your employees’ safety and protect them against health and safety hazards at work.

In order to manage workplace health and safety and help prevent accidents and sickness absence, it’s important to identify, monitor and reduce the risk associated with workplace hazards.

Simply put, workplace hazards are any aspect of work that cause health and safety risks and have the potential to harm.

Some hazards are more likely to be present in some workplaces than others, and depending on the work that you do, there will be hazards that are more or less relevant to your business.

There are many types of workplace hazards, which tend to come under four main categories:

  • Physical hazards: The most common workplace hazards, including vibration, noise and slips, trips and falls;
  • Ergonomic hazards: Physical factors that harm the musculoskeletal system, such as repetitive movement, manual handling and poor body positioning;
  • Chemical hazards: Any hazardous substance that can cause harm to your employees;
  • Biological hazards: Bacteria and viruses that can cause health effects, such as hepatitis, hiv/aids and legionnaire’s disease.

Common health risks

Some of the most common health risks associated with workplace hazards include:

  • Breathing problems
  • Skin irritation
  • Damage to muscles, bones and joints
  • Hearing damage
  • Reduced wellbeing

How to prevent workplace hazards

The best way to protect yourself and your employees from workplace hazards is to identify and manage them and take reasonable steps to prevent their potential to harm.

In order to control workplace hazards and eliminate or reduce the risk, you should take the following steps:

  • Identify the hazard by carrying out a workplace risk assessment;
  • Determine how employees might be at risk;
  • Evaluate the risks;
  • Record and review hazards at least annually, or earlier if something changes.

The following seven steps focus on the basics of a less formal program for smaller businesses; these key steps to a safe work environment will be the basic components of your health and safety program.

  1. Create a plan to promote workplace health and safety

As an employer, you must identify hazards in your workplace and take steps to eliminate or minimize them. Develop a safety plan. Tell your employees what you will do to ensure their safety and what you expect from them. Make sure your employees have access to a first aid kit.

Hazards can include: a cleaner working with heavy duty cleaning products, a mechanic working with large machinery or a warehouse manager stacking heavy boxes.

  1. Inspect your workplace

Regularly check all equipment and tools to ensure that they are well maintained and safe to use. Also check storage areas and review safe work procedures. Are boxes in your storage area stacked in a safe manner? Are your employees instructed how to lift heavy goods without injuring themselves?  Do your employees know where the fire exit is and where they should gather if there is a fire?

  1. Train your employees

Proper training is necessary for all employees, especially if there is a risk for potential injury associated with a job. Provide written instructions and safe work procedures so they can check for themselves if they are unsure of a task or have forgotten part of their training. Supervise your employees to ensure that they are using their training to perform their job properly and safely.  By not providing the correct training for your employees you are not only endangering the safety of your employees but you will be held liable for the incident which could have serious consequences.

  1. Talk regularly with your employees

Meet regularly with your staff and discuss health and safety issues. Encourage them to share their ideas and thoughts on how to improve safety in the workplace. You might even consider providing first aid training for staff so they are prepared to deal with emergency situations.

  1. Investigate Incidents

Even if an incident does not result in a serious injury, conduct an incident investigation to help determine why an incident happened so you can take steps to ensure that it will not recur.

  1. Maintain Records

Keep records of all first aid treatment, inspections, incident investigations, and training activities. This information can help you identify trends in unsafe conditions or work procedures.

  1. Make safety a key part of your business

Safety shouldn’t be an after-thought; it’s just as important to a successful business as customer service, inventory control, and financial planning. A commitment to health and safety makes good business sense because it’s the one way to protect your greatest resource your people.

Women Welfare: Meaning, need for women Welfare, Provision of Factories Act as applicable for women welfare

A good HR policy tries to ensure that women employees should not give up their otherwise aspiring career to fulfil their role as a mother. A woman becoming the mother fulfils her duties just not for her family but for society as well. Corporate Sector is coming up with various beneficial schemes for the welfare of the Women Employees who are now the driving force in the working community.

Until modern times, legal and cultural practices, combined with the inertia of longstanding religious and educational conventions, restricted women’s entry and participation in the workforce.

Under Article 15(3), the Constitution of India allows for positive discrimination in favour of women. The article, under right to equality, states that: “Nothing in this article shall prevent the State from making any special provision for women and children.” In addition, the Directive Principles of State Policy 39(A) states that: “The State shall, in particular, direct its policy towards securing that the citizens, men and women equally, have the right to an adequate means of livelihood.”

The Rashtriya Mahila Kosh (National Credit Fund for Women) was set up in 1993 to make credit available for lower income women in India. More recent programs initiated by the Government of India include the Mother and Child Tracking System (MCTS), the Indira Gandhi Matritva Sahyog Yojana, Conditional Maternity Benefit plan (CMB), as well as the Rajiv Gandhi Scheme for Empowerment of Adolescent Girls: Sabla.

The Second National Commission on labor, 2002

The Commission has also justified the protective discriminatory legislation in favor of women by recommending that all such legislation are necessary for women workers.
As rightly mentioned by our honorable Prime Minister Mr. Narendra Modi in one of his speeches,

“Women constitute 50% of our population and if they do not come out and work, then our country will never grow at the pace we all envision it to grow, and for that very reason, governments over time have taken special care to enact and amend laws to ensure greater participation of women in the growth story of India”.
From time immemorial women have confronted biased test. In this era too, as an ever-increasing number of young educated women go into clerical employment, their odds of confronting ruthless conduct from men at various word related dimensions have increased.

Protection for Women in Labour Statutes:

While there are multiple statutes aimed only at women, such as the Sexual harassment at Workplace Act, Maternity Benefits Act, etc., a number of other statutes that are aimed at the general working populace have special provisions for the welfare of women workers, namely:

Crèche Facility for Women Employees:

As per the provisions under Section 48 of the Factories Act, 1948 “Any factory employing 30 or more women workers are required to provide creche facilities for the use of children under the age of 6 years for the women employees.”

Provision for crèches exists under the following:

  1. The Factories Act, 1948;
  2. The Mines Act, 1952;
  3. The Plantation Labour Act, 1951;
  4. The Building and Other Construction Workers’ (Regulation of Employment and Conditions of Service) Act, 1996;
  5. The Beedi and Cigar Workers (Conditions of Employment) Act, 1966;
  6. The Contract Labour (Regulation and Abolition) Act, 1970;
  7. The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979.

Safety/Health Measures

1. Section 22 (2) The Factories Act, 1948 Provides that no woman shall be allowed to clean, lubricate or adjust any part of a prime mover or of any transmission machinery while the prime mover or transmission machinery is in motion
2. Section 27 The Factories Act, 1948 Prohibits employment of women in any part of a factory for pressing cotton in which a cotton-opener is at work.
3. Section 34 The Factories Act, 1948 No woman employee shall lift, carry, or move by hand or on the head of any material, article, tools, or appliance exceeding the maximum limit in weight of 30 kilograms
4. Section 46 (2) (d) The Factories Act, 1948 There shall be at least one women (worker) on the Canteen Managing Committee.
5. Section 41, Section 43, Contract Labour (Regulation and Abolition) Act, 1970 Separate Restrooms and Canteens
6. Section 40, Section 41 The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979 Separate Restrooms and Canteens

Prohibition of work in Hazardous Occupations

  1. Section 22(2) of the Factories Act, 1948 prohibits women to work with machinery in motion or in any case whatsoever.
  2. Also Section 87 of the Factories Act, 1948 empowers the State Government to prohibit employment of women in dangerous operations.
  3. The Factories Act also prohibits the employment of women in pressing cotton where a cotton-opener is at work. There is a proviso that if the feed end of a cotton-opener is in a room separated from the delivery end by a partition to the roof or to such height as the inspector may in any particular case specify in writing, women may be employed on the side of the partition where the feed end is situated under Section 27.
  4. Section 34 states that Maximum Permissible Load To safeguard women against the dangers arising out of lifting to heavyweight, the Factories Act authorize the appropriate Governments to fix the maximum load that may be lifted by women. Rules framed by all the State Governments (Except U.P.) have fixed the following maximum weights for women employed in factories.
1. Adult Females 65 lbs
2. Adolescent Females 55 lbs
3. Children Female 30 lbs

Turning Point Precedents

  • In Pearson v. Belgium Co. Ltd., The question was whether a woman could clean the stationary parts of a machine if the machine as a whole is in motion. The Court held that even stationary parts of the machine could not be cleaned by a woman if the machinery as a whole is in motion.
  • Also, In Richard Thomas and Baldwins Ltd. v. Cummings, The Court noted that there would be no breach of statutory duty if an injury occurred while the machinery was not enclosed, if the power was cut off and the machinery was under repair and the parts were not in motion but were moved by hand for repair purposes.
  • In a landmark case of B.N. Gamadia v. Emperor, the Bombay High Court observed that the provisions of the Section are not complied with if the door is divided between the two parts of the room and opened by a woman employed while the door is shut, but not locked or if other effective means are taken to prevent the door from being opened by a woman.

Prohibition of Night Work

1. Section 66 (1) (b) The Factories Act, 1948 States that no woman shall be required or allowed to work in any factory except between the hours of 6 a.m. and 7 p.m.
2. Section 25 The Beedi and Cigar Workers (Conditions of Employment) Act, 1966 Stipulates that no woman shall be required or allowed to work in any industrial premise except between 6 a.m. and 7 p.m.
3. Section 46 (1) (b) The Mines Act, 1952 Prohibits employment of women in any mine above ground except between the hours of 6 a.m. and 7 p.m.
4. – Shops and Establishment Act, 1953 No women shall be required or allowed to work in any establishment after 9:30 PM
5. Section 25 The Plantation Labour Act, 1951 Except with the permission of the State Government, no woman or child worker shall be employed in any plantation otherwise than between the hours of 6 a.m. and 7 p.m.: Provided that nothing in this section shall be deemed to apply to midwives and nurses employed as such in any plantation.
6. – The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979 No women shall be required or allowed to work in any establishment after 9:30 PM

In Triveni K.S. and Others v. Union of India and others, Section 66(1)(b) of the Constitution was challenged to be discriminatory on the basis of sex. The High Court held that women should not be employed for their own safety and welfare even during the night was an ideology of an erstwhile age that was out of tune with modern requirements for equality, especially between sexes. With regard to an exception provided to the fishing and canning industry, this was postulated that it would seem a ludicrous assertion that women in these sectors would be completely safe but still not safe in the textile industry. Consequently, Section 66(1)(b) of the Act was ruled unconstitutional by the High Court and proclaimed that females in the fishing industry should also be given more or less the same protection as some of those provided for.

Provisions for Separate Latrines and Urinals

1. Section 19 The Factories Act 1948
2. Section 20 The Mines Act 1952
3. Section 9 Plantations Labour Act 1951
4. Rule 42 The Inter-State Migrant Workmen (RECS) Central Rules 1980
5. Rule 53 The Contract Labour (Regulation and Abolition) Act 1970
6. – The Building and Other Construction Workers’ (Regulation of Employment and Conditions of Service) Act 1996
7. – The Beedi and Cigar Workers (Conditions of Employment) Act 1966

Latrine and Urinal Facilities Separate conservancy facilities are provided to women workers in Factories Act, 1948.  

  • The Factories Act, 1948 makes it obligatory for every factory to maintain an adequate number of latrines and urinals of the prescribed type separately for men and women workers.
  • Such facilities are to be conveniently situated and accessible to workers at all times while they are in the factory.  
  • Every latrine is required to be undercover and so partitioned off as to secure privacy and have a proper door and fastenings.  
  • Sweepers are required to be employed to keep latrines, urinals and washing places clean.  
  • Standard of construction and the scale of the latrine accommodation to be provided for men and women workers are contained in the rules framed by the concerned state government.

Provisions for Separate Washing Facilities:

1. Section 42 The Factories Act 1948
2. Section 43,

Section 41 (4), Section 41 (9)(ii)

The Inter-State Migrant Workmen (RECS) Act 1979
3. Section 57,

Section 44

The Contract Labour (Regulation and Abolition) Act 1970
4. Section 34 The Building and Other Construction Workers’ (Regulation of Employment and Conditions of Service) Act 1996

According to Section 42 (1)(b) of the Factories Act,1948 separate and adequately screened washing facilities shall be provided for the use of male and female workers. Such facilities shall be conveniently accessible and shall be kept clean. However, the State Government is empowered to prescribe standards of adequate and suitable facilities for washing.

Prohibition of Sub-terrain Work

Section 46(1)(b) of the Mines Act, 1952 prohibits employment of women in any part of a mine which is below ground.

Provisions of Information Center under Factories Act, 1948

Each factory shall set up an information center for female workers to provide them with information on the protection measures in accordance with the law and the rules.

The Factories Act, 1948 (“Factories Act”)

The Aim & Object of the Act:

To safeguard the interest of workers and protect them from exploitation, the Act prescribes certain standards with regard to safety, welfare and working hours of workers, apart from other provisions. The Factories Act aims at protecting workers employed in factories from unfair exploitation by their employers. Proper working conditions include ensuring health, safety, welfare, proper working hours, leave, and other benefits.  

Exclusive Provisions for Women Workers

  • There are also numerous other facilities to be offered to factory workers, such as women’s washing and bathing facilities, toilets( separate latrines and urinals for women), toilets and canteens. Public utility amenities will be offered separately for women at work.
  • A female worker shift timing need not be altered except after a weekly holiday or a totally different holiday. Thus, employees (female) now have the right to receive at least a 24-hour notice for their change in shift timing.
  • Female workers are prohibited from working in a dangerous occupation, from pressing cotton where a cotton-opener is at work and from limiting the maximum allowable load.
  • The Factories Act also stipulates the employers employing 30 or more women workers to provide for cheches for children of the women workers, aged 6 years and below.
  • No woman worker shall be allowed to work in a factory except between 6 a.m. and 7 p.m. The State Governments may by notification vary the limits as set out in this point, but in no circumstance will women employees be allowed to work between 10 p.m. and 5 a.m.

In 1987, the Act was amended, establishing safeguards against its use and handling of hazardous materials and protocols for the establishment of hazardous industries.

The Equal Remuneration Act, 1976 (“Equal Remuneration Act”)

Here again, we find discussions and cases of wage discrimination, in which women workers are paid less than their male counterparts. This is a story throughout the world, even in developed countries.

Article 39 of our Constitution directs that “States shall, in particular, have policies towards securing equal pay for equal work for both men and women.”

Under the Equal Remuneration Act:

  • Employers shall pay equal pay to man and a woman who perform the same or even similar work.
  • Employers could not legally discriminate between men and women in the recruitment process unless there is a legal limit to the employment of females in certain sectors.

ILO Convention & Constitution

The establishment of the International Labour Organisation in 1919 influenced considerably the activities of the State in this field. Most of these laws have been inspired by the Conventions and Recommendations adopted by the International Labour Organisation.

Promotion of equality in employment is positive enforcement, unlike prevention of discrimination, which is a sort of negative right or negative equality. This involves breaking down both horizontal and vertical occupational segregation.

The ILO Constitution of 1919, and the ILO Convention on Equal Remuneration 1951, both recognize the principle of “equal pay for work of equal value.” This is also enshrined in the Constitution of India under Articles 14 and 15, as well as the Equal Remuneration Act of 1976.  Despite such recognition often the issue of equal pay for women workers goes un-championed, even by trade unions, as they often do not view this to be a problem that affects the workers as a whole.

Another cause for a disparity in income is that a majority of the active female workforce is involved in the informal sector, such as agriculture and domestic work, which have very few regulations in terms of remuneration and social security.

Other Enactments

In addition to the above- mentioned laws, there are some other statutes for the welfare and protection of female factory workers. Furthermore, female workers should be  made aware of various acts providing social security for them:

  • The Employee’s Provident Fund & Miscellaneous Provisions Act, 1952;
  • The Employees State Insurance Act, 1948;
  • Payment of Gratuity Act, 1972;
  • Payment of Bonus Act, 1965, etc.

Need for Special Protection for Women?

  • While women constitute a substantial chunk of the available workforce in India, they are still lacking in work participation (the percentage of women employed is still low) as well as the quality of employment.
  • One of the reasons for this lack of this female labor participation is the lack of suitable jobs on offer, i.e. the disparity between what they can do and what is available to them.
  • The question of safety is another reason for low female participation in the field of employment. Good governance and law enforcement is a must if the intention is to increase women’s sense of security and thereby encourage more women to take up jobs.
  • Another problem is that the sectors that women are employed in such as “domestic work” fall under the “unorganized sector” and this is problematic in the sense that there is no strong set of workplace rules in place; this again is a factor that leads to the lack of women in the active workforce, as it is incredibly hard to simply maintain a job let alone build a career.
  • This vulnerable position of women in terms of adverse conditions is only worsened by any possible sudden negative impact upon the industry as they are already dealing with unequal intrinsic situations.
  • They have to cope with childbirth and related issues, they have also to deal with domestic responsibility, which in a patriarchal society is not much of a concern to men, etc.

Work Environment Management: Meaning, need for healthy work environment, Measures for providing healthy work

Physical environment and occupational health & safety

A healthy workplace environment also involves the physical environment of the office or workshop and the occupational health & safety of your employees. Reduce the worry of your employees by looking into the safety of the workplace.

Simple things such as ensuring that all electric cables are covered or taped down with a cable tray to prevent employees from tripping over them are one of the issues, which your employees should not be worried about. Nobody wants to sit underneath a cracked ceiling! So, allow your employees to come to a safe workplace environment.

Health and lifestyle practice

Employees will care for the company they are working for if they know that they are being looked after. Employees are the best asset of every organisation, and putting effort into employee wellness can encourage better teamwork, increased productivity and reduce sick leave and workplace accidents.

Supportive workplace environment

Everyone has personal problems and it is only human that some personal emotions get brought into the workplace. Try not to ignore them but instead, find the core of the problem and be a supportive employer by showing concern. Your employee may come in to work depressed due to a passing a loved one or they had a terrible weekend.

As an employee, show compassion and be there for them. You do not need to sit by them the whole day, but by dropping an email, saying your doors are always open for them, shows that you not only care about the progress of the company, but you also care about the well-being of your employee. Remember that a supportive workplace culture is the foundation of a healthy workplace environment.

Ways to Create a Healthy Workplace Environment

A happy (and healthy!) employee is a productive employee. People who enjoy their jobs are more likely to engage thoroughly with their work. As an employee, it is always in your best interest to keep your staff happy; otherwise, resentment could start to impact on the quality of their work or they may even consider leaving.

Here are some ways that you could create a healthy workplace environment:

Promote wellness: You can encourage health and wellness of your employees by having a weekly exercise program such as a yoga session before the start of their work day or an aerobics class after work. This not only encourages a healthy lifestyle among your team but also give them the opportunity to get to know their workmates better.

Engage with different personalities: Every workplace has a combination of characters, and what works to motivate a particular employee, may not necessarily help others. Get to know your employees and find out whether a hands-on approach or more independence will help them.

Fair employee policy: This should apply to all employees regardless of their position or designation in the company. If a supervisor constantly misses deadlines, you should take it as seriously as you would with a junior employee. If your policy changes, ensure everyone knows about it.

Eat healthy: Healthy eating is not about strict dietary restrictions, staying unrealistically thin, or depriving yourself of the foods you love. It is about feeling great, having more energy, improving your outlook and your mood. Another great way to create a healthy workplace environment is by eating healthy, and no skipping lunch break because employees are busy is not a good excuse. Try catering a healthy lunch meal such as salads or sandwiches. You could also provide a bowl of fruits for snacks.

Team building activities: Team building activities not only bond employees closer but also motivate them, creating a positive workplace environment. These activities help improve internal communication and productivity, boosting morale at the workplace and in helping employees get to know each other better. Read our blog on Team Building Ideas for Great Staff Engagement to get some ideas.

Break time: Another great way to create a healthy workplace environment is by encouraging your employees to take a quick 5-minute break from their desk. Regular breaks will assist to relieve muscle fatigue, eyestrain and to restore the level of concentration. There are a couple of apps that you can permanently install on your employees’ desktop, which reminds them take to a break and stretch.

Clean and comfortable office: Working in a clean and comfortable office can have tremendous effects on the interactions among colleagues. Even if your office does not get the sunlight, try to make an effort to provide a relaxing atmosphere with comfortable furniture, working equipment and add a few work lights to make it brighter.

Hierarchy

There is high power distance in India. It is fully acceptable for strong hierarchy to occur in most Indian organisations. They have high need of structuring relationships, with an aim to attach a set of responsibilities and expectations to a certain person in a senior position. Typically, the manager is responsible for taking care of his or her* employees, and in return, her subordinates will be expected to show great loyalty to her without any questions on her authority. 
Keep in mind that India is a big country, carrying the slogan ‘unity in diversity’ for a reason, hence organisational structures can be very different from the north to the south.

Decision-Making

Very long decision making processes should be expected when it comes to working with Indians. They are quite comfortable with uncertainty and ambivalence, so delays in decision-making usually take place unless making a decision has become absolutely urgent.

Most of the major decisions are made by senior managers. Employees are sometimes encouraged to take decisions at lower levels. Tasks and assignments should be divided into small and controllable units, so that the management can easily keep track and supervise.

Time Perception

Indian people are flexible when it comes to punctuality. Arriving at a meeting 15 minutes after the official starting time is not rare. It is not that people mean to be rude or feel uninvolved, it is just their working style that being strictly on time is not seen as necessary. This also should be taken into account when setting deadlines for a project, as Indian people may have different perspectives regarding deadlines compared to western people.

Appointments

It is uncommon to set up an appointment to meet a colleague working in the same organisation, unless that person is on senior management level. People simply stop by and they expect you to be available for a meeting.
Appointments for commercial purposes should not be scheduled too far in the future, since there are high chances that they can be cancelled.

Dress Code

The Indian dress-code is relatively casual. Male employees will wear trousers and collared shirts to work. A jacket and a tie can be added when needed or for the more senior managers. Often female workers wear a colourful salwar kameez. Also, on the management level female managers mostly wear sarees.

Some Benefits of a Safe and Healthy Work Environment:

  • It goes without saying that the safer the work environment, the more productive it is. Productive employees are an asset to all companies. For instance, productive employees can produce more output in less time, reducing operational costs for a company.
  • Workplace safety promotes the wellness of employees and employers alike. Better safety equates to better health. Healthier employees do tasks more efficiently and they are happier in general.
  • There are very few accidents in a safe working environment. This results in less downtime for safety investigations and reduces costs for worker’s compensation. This also reduces the time needed for employees to heal from injuries.
  • Damage to industrial equipment creates costs for replacement and repair. Avoiding workplace injuries and damage to industrial equipment will incur fewer expenses and increase profit.
  • If employers are concerned about the safety of their employees, the employees are more confident and comfortable in general. Also, absenteeism rates drop and employees are more focused on doing their tasks.

Ways to Create a Safe Working Environment

Being Aware and Identifying workplace Hazards

This is the first step to create a safe working environment. Employers need to identify workplace hazards and safety issues first. Then they must take measures to address them accordingly.

Workplace safety hazards can include mechanical issues, dangerous chemicals, hazardous electrical equipment, etc.

Mechanical problems can occur at any time while operating machinery in the workplace. Also, working with heavy equipment is very risky and can cause accidents.

If employees need to work with chemicals they have to be very cautious. Dangerous chemicals can burn or poison employees. Inhaling or ingesting them can even cause death.

Also, working with electronic equipment can have risks as well. Faulty electrical equipment can electrocute employees causing serious problems.

Employees should be aware of the types of equipment and know the hazards in their workplace. This enables them to stay clear of such hazards and unfortunate situations. Also, employers should train employees in the proper operation of machinery and equipment.

Implementing Workplace Safety Programs

The first step in building a safety program is to get all employees to commit to workplace safety. One way to do this is to include workplace safety in the company’s mission statement. It should be the duty of every employee to carry out the safety policies.

Employers should investigate all accidents in the workplace. They should encourage employees to follow all safety procedures.

Moreover, the hazards of not following them should be clearly stated in writing. This reduces the chances of mistakes.

Providing Proper Safety Training to Employees

Training is an important part of every company’s safety program to protect employees from accidents. Research shows that new employees have a higher risk of workplace accidents. It is the lack of knowledge of workplace hazards and proper work techniques that cause this greater risk.

Employers should provide employees with the necessary training to reduce workplace accidents. Employees should operate all equipment and machinery properly and safely.

For instance, the operation of heavy machinery should be properly taught to employees. Only trained or certified employees should operate such types of equipment. This is why it is important to provide safety training to employees by experts.

Using Protective Safety Equipment

The usage of equipment worn to minimize exposure to hazards that cause workplace injuries is very important. Not doing so can cause injury or even death.

Employees may have to work with chemicals, machines, electronics and other potential work hazards. Employers must provide such employees with personal protective equipment (P.P.E).

P.P.E should be safely designed, constructed and fit comfortably. Examples of P.P.E are gloves, protective eyewear, clothing, earplugs, hard hats, etc.

Reporting Unsafe Working Conditions

Employees must inform any kind of safety hazard or work risks to the management. Employers are legally obligated to ensure safe working environments for their employees. It is their duty to end workplace safety hazards and promote safety in the workplace.

Practicing Correct Posture

Bad posture is one of the main reasons for back pain. It is imperative to practice good and correct posture to reduce the risk of getting hurt.

For example, if you have to sit for long hours, use specially designed chairs. Also, always sit upright.

Reducing Workplace Stress

Workplace stress can cause many health problems like anxiety, depression, etc.

Job insecurity, workplace bullying, high workload, etc. cause workplace stress.

Learn how to combat workplace stress and avoid its negative effects. Workplace stress can have drastic effects on workplace productivity and employee health.

Promoting Regular Breaks

Employers should encourage employees to take regular breaks. Taking regular breaks will prevent tiredness and fatigue. This will further prevent injuries or illnesses. Breaks help employees stay fresh and focused.

Staying Sober and Alert

One of the major reasons for workplace fatalities is substance abuse. Substance abuse causes around 40% of all industrial workplace fatalities.

Individuals under the influence of alcohol or drugs are less alert. Their decision-making ability, coordination, concentration, and motor control gets compromised. This creates risks for workplace injury and fatalities.

Easy Access to Exits in Case of Emergencies

If there is an emergency, it is important to have easy access to emergency exits. Easy access to emergency exits will reduce injuries and casualties.

Also, it is important to have quick ways to shut down equipment in case of emergencies.

Using Mechanical Aids

An industrial job may need employees to work with heavy equipment. There are many injury risks involved in trying to lift and move heavy objects. Employees can use a conveyor belt, forklift or wheelbarrow instead of lifting manually.

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