335.

EMPLOYEE WELFARE & LEGISLATION

UNIT-I WELFARE The term welfare suggests many ideas, meanings and connotations, such as the state of well-being, health, happiness, prosperity and the development of human resources. As a total concept of welfare, it is a desirable state of existence involving physical, mental, moral and emotional well-being. The social concept of welfare implies the welfare of man, his family, and his community. Welfare is called a relative concept, for it is related to time and space. Changes in it have an impact on the system of welfare as well. Welfare is also a positive concept. In order to establish a minimum level of welfare, it demands certain minimum acceptable conditions of existence, biologically and socially. LABOUR WELFARE It means the adoption of measures to promote the physical, social, psychological and general well-being of the working population. A significant definition describes labour welfare work as the voluntary efforts of the employer to improve the living and working conditions of his employees; the underlying assumption, of course, being that the first essentials to the welfare of the employees are steady work, a fair wage and reasonable hours of labour. Labour welfare is also understood to mean such services, facilities and amenities, which may be established in, or in the vicinity of, undertakings to enable persons employed therein to perform their work in healthy and congenial surroundings and to provide them with amenities conducive to good health and good morals. SIGNIFICANCE OF LABOUR WELFARE Welfare includes anything that is done for the comfort and improvement of employees and is provided over and above the wages. Welfare helps in keeping the morale and motivation of the employees high so as to retain the employees for longer duration. The welfare measures need not be in monetary terms only but in any kind/forms. Employee welfare includes monitoring of working conditions, creation of industrial harmony through infrastructure for health, industrial relations and insurance against disease, accident and unemployment for the workers and their families.

III.Semester, MBA, KIPS.

P. Lkshmikeerthi, Lecturer

335. EMPLOYEE WELFARE & LEGISLATION

Labor welfare entails all those activities of employer which are directed towards providing the employees with certain facilities and services in addition to wages or salaries. Labor welfare has the following objectives: 1. To provide better life and health to the workers 2. To make the workers happy and satisfied 3. To relieve workers from industrial fatigue and to improve intellectual, cultural and material conditions of living of the workers. The basic features of labor welfare measures are as follows: 1. Labor welfare includes various facilities, services and amenities provided to workers for improving their health, efficiency, economic betterment and social status. 2. Welfare measures are in addition to regular wages and other economic benefits available to workers due to legal provisions and collective bargaining 3. Labor welfare schemes are flexible and ever-changing. New welfare measures are added to the existing ones from time to time. 4. Welfare measures may be introduced by the employers, government, employees or by any social or charitable agency. 5. The purpose of labor welfare is to bring about the development of the whole personality of the workers to make a better workforce. The very logic behind providing welfare schemes is to create efficient, healthy, loyal and satisfied labor force for the organization. The purpose of providing such facilities is to make their work life better and also to raise their standard of living. The important benefits of welfare measures can be summarized as follows: They provide better physical and mental health to workers and thus Facilities like housing schemes, medical benefits, and education and promote a healthy work environment recreation facilities for workers families help in raising their standards of living. This makes workers to pay more attention towards work and thus increases their productivity.

III.Semester, MBA, KIPS.

P. Lkshmikeerthi, Lecturer

335. EMPLOYEE WELFARE & LEGISLATION

Employers get stable labor force by providing welfare facilities. Workers

take active interest in their jobs and work with a feeling of involvement and participation. Employee welfare measures increase the productivity of organization and The social evils prevalent among the labors such as substance abuse, etc promote healthy industrial relations thereby maintaining industrial peace. are reduced to a greater extent by the welfare policies. WELFARE STATE There are two main interpretations of the idea of a welfare state: A model in which the state assumes primary responsibility for the welfare of its citizens. This responsibility in theory ought to be comprehensive, because all aspects of welfare are considered and universally applied to citizens as a "right". Welfare state can also mean the creation of a "social safety net" of minimum standards of varying forms of welfare. Here is found some confusion between a "welfare state" and a "welfare society" (see below) in common debate about the definition of the term. The provision of welfare in society. In many "welfare states", especially in continental Europe, welfare is not actually provided by the state, but by a combination of independent, voluntary, mutuality and government services. The functional provider of benefits and services may be a central or state government, a state-sponsored company or agency, a private corporation, a charity or another form of non-profit organization. However, this phenomenon has been more appropriately termed a "welfare society," and the term "welfare system" has been used to describe the range of welfare state and welfare society mixes that are found. The English term "welfare state" is believed by Asa Briggs to have been coined by Archbishop William Temple during the Second World War, contrasting wartime Britain with the "warfare state" of Nazi Germany. Friedrich Hayek contends that the term derived from the older German word Wohlfahrtsstaat, which itself was used by nineteenth century historians to describe a variant of the ideal of Polizeistaat ("police state"). It was fully developed by the German III.Semester, MBA, KIPS. P. Lkshmikeerthi, Lecturer

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academic Sozialpolitiker"socialists of the chair"from 1870 and first implemented through Bismarck's "state socialism". Bismarck's policies have also been seen as the creation of a welfare state. In German, a roughly equivalent term (Sozialstaat, "social state") had been in use since 1870. There had been earlier attempts to use the same phrase in English, for example in Munroe Smith's text "Four German Jurists",[5] but the term did not enter common use until William Temple popularized it. The Italian term "Social state" (Stato sociale) has the same origin. The Swedish welfare state is called Folkhemmet and goes back to the 1936 compromise between the Union and big Corporate companies. It is a Mixed economy, built on strong unions and a strong system of Social security and universal health care. In French, the synonymous term "providence state" (tat-providence) was originally coined as a sarcastic pejorative remark used by opponents of welfare state policies during the Second Empire (1854-1870). In Spanish and many other languages, an analogous term is used: estado del bienestar; translated literally: "state of well-being". In Portuguese, a similar phrase exists: Estado de Bem-Estar-Social; which means "socialwell-being state". Early welfare states The "concept of what one might call a welfare state" appeared during the Abbasid The concepts of welfare and pension were introduced in early Islamic law as

Caliphate in the 8th century. forms of Zakat (charity), one of the five Pillars of Islam, since the time of Caliph alMansur. The taxes (including Zakat and Jizya) collected in the treasury of an Islamic government were used to provide income for the needy, including the poor, elderly, orphans, widows, and the disabled. According to the Islamic jurist Al-Ghazali (Algazel, 1058-1111), the government was also expected to store up food supplies in every region in case a disaster or famine occurred. Modern welfare states III.Semester, MBA, KIPS. P. Lkshmikeerthi, Lecturer

335. EMPLOYEE WELFARE & LEGISLATION

Modern welfare states developed through a gradual process beginning in the late

19th century and continuing through the 20th. They differed from previous schemes of poverty relief due to their relatively universal coverage. The development of social insurance in Germany under Bismarck was particularly influential. Some schemes, like those in Scandinavia, were based largely in the development of autonomous, mutualist provision of benefits. Others were founded on state provision. The term was not, however, applied to all states offering social protection. The sociologist T.H. Marshall identified the welfare state as a distinctive combination of democracy, welfare and capitalism. Examples of early welfare states in the modern world are Germany, all of the Nordic Countries, the Netherlands, Australia, Uruguay and New Zealand and the United Kingdom in the 1930s. Changed attitudes in reaction to the Great Depression were instrumental in the move to the welfare state in many countries, a harbinger of new times where "cradleto-grave" services became a reality after the poverty of the Depression. During the Great Depression, it was seen as an alternative "middle way" between communism and capitalism. In the period following the Second World War, many countries in Europe moved from partial or selective provision of social services to relatively comprehensive coverage of the population. The activities of present-day welfare states extend to the provision of both cash welfare benefits (such as old-age pensions or unemployment benefits) and in-kind welfare services (such as health or childcare services). Through these provisions, welfare states can affect the distribution of wellbeing and personal autonomy among their citizens, as well as influencing how their citizens consume and how they spend their time. After the discovery and inflow of the oil revenue, Saudi Arabia, Brunei, Kuwait, Qatar, Bahrain, Oman and the United Arab Emirates all became welfare states.

III.Semester, MBA, KIPS.

P. Lkshmikeerthi, Lecturer

335. EMPLOYEE WELFARE & LEGISLATION

In the United Kingdom, the beginning of the modern welfare state was in 1911

when David Lloyd George suggested everyone in work should pay national insurance contribution for unemployment and health benefits from work. In 1942, the Social Insurance and Allied Services was created by Sir William Beveridge in order to aid those who were in need of help, or in poverty. Beveridge worked as a volunteer for the poor, and set up national insurance. He stated that 'All people of working age should pay a weekly national insurance contribution. In return, benefits would be paid to people who were sick, unemployed, retired or widowed.' The basic assumptions of the report were the National Health Service, which provided free health care to the UK. The Universal Child Benefit was a scheme to give benefits to parents, encouraging people to have children by enabling them to feed and support a family. This was particularly beneficial after the second world war when the population of the United Kingdom declined. Universal Child Benefit may have helped drive the Baby boom. The impact of the report was huge and 600,000 copies were made. Beveridge recommended to the government that they should find ways of tackling the five giants, being Want, Disease, Ignorance, Squalor and Idleness. He argued to cure these problems, the government should provide adequate income to people, adequate health care, adequate education, adequate housing and adequate employment. Before 1939, health care had to be paid for; this was done through a vast network of friendly societies, trade unions and other insurance companies which counted the vast majority of the UK working population as members. These friendly societies provided insurance for sickness, unemployment and invalidity, therefore providing people with an income when they were unable to work. But because of the 1942 Beveridge Report, in 5 July 1948, the National Insurance Act, National Assistance Act and National Health Service Act came into force, thus this is the day that the modern UK welfare state was founded. Welfare systems were developing intensively since the end of the World War II. At the end of century due to their restructuration part of their responsibilities started to be channeled through non-governmental organizations which became important providers of social services. Two forms of the welfare state There are two ways of organizing a welfare state: III.Semester, MBA, KIPS. P. Lkshmikeerthi, Lecturer

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According to the first model the state is primarily concerned with directing the resources to the people most in need. This requires a tight bureaucratic control over the people concerned, with a maximum of interference in their lives to establish who are "in need" and minimize cheating. The unintended result is that there is a sharp divide between the receivers and the producers of social welfare, between "us" and "them", the producers tending to dismiss the whole idea of social welfare because they will not receive anything of it. This model is dominant in the US. According to the second model the state distributes welfare with as little bureaucratic interference as possible, to all people who fulfill easily established criteria (e.g. having children, receiving medical treatment, etc). This requires high taxing, of which almost everything is channeled back to the taxpayers with minimum expenses for bureaucratic personnel. The intended and also largely achieved result is that there will be a broad support for the system since most people will receive at least something. This model was constructed by the Scandinavian ministers Karl Kristian Steincke and Gustav Mller in the 30s and is dominant in Scandinavia.

WELFARE ACTIVITIES Organizations provide welfare facilities to their employees to keep their motivation levels high. The employee welfare schemes can be classified into two categories viz. statutory and non-statutory welfare schemes. The statutory schemes are those schemes that are compulsory to provide by an organization as compliance to the laws governing employee health and safety. These include provisions provided in industrial acts like Factories Act 1948, Dock Workers Act (safety, health and welfare) 1986, Mines Act 1962. The non statutory schemes differ from organization to organization and from industry to industry. It is a comprehensive term including various services, benefits and facilities offered to employees by the employer. Through such generous fringe benefits, the employer makes life worth living for employees. The welfare amenities are extended by in addition to normal wages and other economic rewards available to the employees as per legal provisions.

III.Semester, MBA, KIPS.

P. Lkshmikeerthi, Lecturer

335. EMPLOYEE WELFARE & LEGISLATION

The significance of welfare measures were accepted as early as 1931 when the Royal Commission on Labour stated, the benefits are of great importance to the worker which he is unable to secure by himself. The schemes of labour welfare may be regarded as a wise investment because these would bring a profitable return in form of greater efficiency. The working environment in a factory adversely affects the health of the employees. This has to be contained through preventive steps aimed at improving the lot of workers. An important reason in favour of welfare work is called the "social invasion of the factory. Workers face lots of adjustment problems when they take up factory work. These changes call for extra inducements in the workplace in addition to normal wages, so that the worker begins to enjoy a fuller and richer life. The Labour Investigation Committee reads thus: "The provision of canteens improves the physique ; entertainment reduces the incidence of vices; medical aid, maternity and child welfare services improves the health of the workers and bring down the rates of general , maternal and infantile mortality; and educational facilities increase their mental efficiency and economic productivity." TYPES OF WELFARE FACILITIES INTRAMURAL (Within the establishment) Drinking water Toilets Crches Washing & Bathing facilities Uniforms and Protective cloting Recreation facilities Subsidized food at canteens Medical Aid Rest shelters STATUTORY WELFARE SCHEMES The statutory welfare schemes include the following provisions: III.Semester, MBA, KIPS. P. Lkshmikeerthi, Lecturer EXTRAMURAL (Outside the establishment) Housing Education facilities Maternity Benefits Transportation Sports facilities Leave travel Holiday homes Cooperative stores Social-Insurance, Vocational training

335. EMPLOYEE WELFARE & LEGISLATION

1. Drinking Water: At all the working places safe hygienic drinking water should be provided. 2. Facilities for sitting: In every organization, especially factories, suitable seating arrangements are to be provided. 3. First aid appliances: First aid appliances are to be provided and should be readily assessable so that in case of any minor accident initial medication can be provided to the needed employee. 4. Latrines and Urinals: A sufficient number of latrines and urinals are to be provided in the office and factory premises and are also to be maintained in a neat and clean condition. 5. Canteen facilities: Cafeteria or canteens are to be provided by the employer so as to provide hygienic and nutritious food to the employees. 6. Spittoons: In every work place, such as ware houses, store places, in the dock area and office premises spittoons are to be provided in convenient places and same are to be maintained in a hygienic condition. 7. Lighting: Proper and sufficient lights are to be provided for employees so that they can work safely during the night shifts. 8. Washing places: Adequate washing places such as bathrooms, wash basins with tap and tap on the stand pipe are provided in the port area in the vicinity of the work places. 9. Changing rooms: Adequate changing rooms are to be provided for workers to change their cloth in the factory area and office premises. Adequate lockers are also provided to the workers to keep their clothes and belongings. 10. Rest rooms: Adequate numbers of restrooms are provided to the workers with provisions of water supply, wash basins, toilets, bathrooms, etc.

III.Semester, MBA, KIPS.

P. Lkshmikeerthi, Lecturer

335. EMPLOYEE WELFARE & LEGISLATION

NON STATUTORY SCHEMES Many non statutory welfare schemes may include the following schemes: 1. Personal Health Care (Regular medical check-ups): Some of the companies provide the facility for extensive health check-up 2. Flexi-time: The main objective of the flextime policy is to provide opportunity to employees to work with flexible working schedules. Flexible work schedules are initiated by employees and approved by management to meet business commitments while supporting employee personal life needs 3. Employee Assistance Programs: Various assistant programs are arranged like external counseling service so that employees or members of their immediate family can get counseling on various matters. 4. Harassment Policy: To protect an employee from harassments of any kind, guidelines are provided for proper action and also for protecting the aggrieved employee. 5. Maternity & Adoption Leave Employees can avail maternity or adoption leaves. Paternity leave policies have also been introduced by various companies. 6. Medi-claim Insurance Scheme: This insurance scheme provides adequate insurance coverage of employees for expenses related to hospitalization due to illness, disease or injury or pregnancy. ROLE OF WELFARE OFFICER As early as 1931, the Royal Commissionon labour recommended the appointment of a labour officer to eliminate the position and evil practices of jobbers who used to engage and dismiss labour. The Bombay Disputes Conciliation Act, 1934, providing for the appointmentof government labour officer who would deal with labour grievances. The same year, the Bombay Millowners Association was persuaded by the State Government to appoint its own labour officer. III.Semester, MBA, KIPS. P. Lkshmikeerthi, Lecturer

335. EMPLOYEE WELFARE & LEGISLATION

The post of the labour officer was instituted initially: (a) To eliminate the evils of the jobber system in the recruitment of labour. (b) To develop and improve labour administration in mills; and (c) To serve as a liaison with the State Labour Commissioner. Eligibility Criteria for Welfare Officer Welfare Officer is the Statutory Appointment to be made under the Factories Act, 1948, if the strength of employees is more than 1000. Futher if there are more than 500 women employee a lady Welfare Officer has to be appointed. The education qualification and condtions for the Welfare Officer is available in the State Factory Rules. Generally for an welfare Officer one should be a MSW / MA ( Social Work) / MBA with Personnel Management subject. In 1946, the Labour Investigation Committee strengthened welfare offices position, and his importance was sressed in the Factories act of 1948, which stated that the owner of every factory with 500 or more workers is obliged to employ the prescribed number of welfare officers. The State Government is authorized to prescribed number of welfare officers. The State Government is authorized to prescribe the duties, qualifications and conditions of service of such officersIn a factory wherein 500 or more workers are ordinarily employed , at least one welfare officer must be appointed. The Malaviya Committees report on Labour welfare in 1969, following the model rules framed under the Factories Act of 1948, has specified the duties of welfare officer. These are: (A) Supervision of safety, health and welfare programmes, including housing, recreation, sanitation services, as provided under the law or otherwise; working of joint committees; grant of leave with wages as provided; and redress of workers grievances. (B) Counselling workers in personal and family problems; helping them to adjust to their environment; and to understand their rights and privileges. III.Semester, MBA, KIPS. P. Lkshmikeerthi, Lecturer

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( C ) Advice management on formulating labour and welfare policies, apprenticeship traning programme, meeting statutory obligations to workers; providing fringe benefits; and workers education and use of communication media. (D) Liasion with workers so that they may understand the various limitations under which they work ; appreciate the need for harmonious industrial relations in the plant; welfare officers should interpret company policies to workers./; and persuade workers to come a settlement when disputes arise. (E) Liasion with management so that the later may appreciate the workers view point on various matters connectged with the plant; welfare officers should intervene on behalf of workers in matters under the consideration of the management; help different departmental heads to meet their obligations under the Act; maintain harmonious industrial relations in the plant, and suggest measures for the promotion of the general well being of workers. (F) Liasion with workers and management for harmonious industrial relations in the plant; for plant redress of grievances and quick settlement of disputes; and for improving the productive efficiency of the enterprise. (G) Liasion with outside agencies such as factory inspectors; medical officers and other inspectors with a view to securing a proper enforcement of the various acts as applicable to the plant; and other agencies in the community with a view to helping workers to make use of community services. ROLE OF GOVERNMENT For a long time, the Central Government did nothing more in the field of labour welfare than to hold Labour Conferences which submitted their recommendations. This conservative labour welfare policy changed during the second World War, when the government took several steps to boost the workers morale and increase their productivity. III.Semester, MBA, KIPS. P. Lkshmikeerthi, Lecturer

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(a) The government of India has set up a Central Board for Workers Education, consisting of representatives of central and state governments, organizations of employers and workers and educations. It established 37 regional centrals to cover important industrial centers. It also provides grants-in-aid to trade unions and institutions for workers, education. (b) Various schemes for grant of National Safety Awards to factories covered by the Factories Act 1948 and Ports have been instituted for good safety records. Four such schemes are in operation, each having 15 awards for good safety records. Each scheme consists of cash prize and certificates of merit. A National safety council was set up in 1960. Its main function is to conduct seminar, organize file shows in factories and distribute posters on the subject of safety. (c) Shram-Vir Awards have been instituted for workers in factories, mines, plantation and docks. The awards are given in recognition of meritorious performance-such as suggestions leading to higher productivity or economy or greater efficiency. Welfare work by state Governments State governments have also played an important role in providing the welfare activities to labours in their state. States of Maharashtra, Uttar Pradesh and West Bengal are the leading states in organizing various welfare activities. Maharashtra: In 1939, Bombay government organised for the first time in the state the Model Welfare Centres. In 1953, the government passed the Labour Welfare Fund Act and transferred all welfare activities to the Bombay Labour Welfare Board constituted under the act having representatives of employers independent persons and women. A welfare fund consisting of underutilized fines and unpaid wages, donation etc., was set up. Labour welfare boards maintains a member of labour welfare centers catering to the various welfare activities for workers and their families. The State government also set up an Institute for training Labour welfare officers for the factories in the state. Uttar Pradesh. In 1937, the government created a new Department of Labour under a III.Semester, MBA, KIPS. P. Lkshmikeerthi, Lecturer

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commissioner of labour. The department has organised labour welfare centre in almost all big industrial centers. The regular centers are divided in to three categories on the basis of the activities undertaken by them. Nearly all basic welfare facilities like hospitals and dispensaries, libraries and reading rooms, sewing classes, maternity centers, creches in door and outdoor games etc. are provided by these centers. The U.P. Government framed factories welfare offices rules. According to these rules, every factory employing 500 workers or more will have to appoint a Labour Welfare Officers and factories employing 2,500 workers or more will have appoint an additional welfare officer. There are also labour welfare advisory committees, one for the whole state 19 in districts to advise the government in organizing labour welfare activities. The government passed U.P. Welfare Fund Act 1956 to provide funds for welfare activities. West Bengals. The government started labour welfare centers at different place and the various activities undertaken by these centers are publicity, library, reading rooms, radio, sports, dispensary etc. Each centre is under the charge of a labour welfare worker, assisted by a labour Welfare Assistant and a Lady Welfare Workers.

Other State Governments: The governments of others state have also started labour welfare centers catering to almost all the labour almost welfare facilities. The states have also undertaken the projects of housing for laborers in the state. LABOUR WELFARE BY GOVERNMENT OF INDIA- CENTRAL SECTOR 1. Various plan schemes of the Ministry of Labour aim at achievement of welfare and social security of the working class and maintenance of industrial peace. As against the approved outlay of Rs.130 crore for the year 1999-2000, the anticipated expenditure would be Rs.104 crore. The approved outlay for the year 2000-2001 is Rs.123 crore. 2. Plan initiatives in the Labour & Labour Welfare Sector are as under: o Training for skill development. o Services to job seekers. o Welfare of labour. o Administration of labour regulations. 3. Under the Constitution of India, Vocational Training is a concurrent subject. The III.Semester, MBA, KIPS. P. Lkshmikeerthi, Lecturer

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development of training schemes at National level, evolution of policy, laying of training standards, procedures, conducting of examinations, certification, etc. are the responsibility of the Central Government, where as the implementation of the training schemes largely rests with the State/U.T. governments. The Central Government is advised by the National Council of Vocational Training (NCVT), a tripartite body which has representation from employers, workers and Central/State governments. At the State level, similar councils known as State Councils for Vocational Training are constituted for the same purpose by the respective state governments at state levels. 4. The main objectives of the scheme are as under: (i) To ensure steady flow of skilled workers. (ii) To raise the quality and quantity of industrial production by systematic training of potential workers. (iii)To reduce unemployment among educated youth by equipping them with suitable skills for industrial employment. 5. The main Vocational Training Schemes comprise of Craftsmen Training Scheme, Apprenticeship Training Scheme, Training of skilled workers, training of women as a special target group, Training of Craft Instructors, Training of Supervisors and also to carry out applied research on vocational training problems while paying adequate attention towards preparation and development of instructional material. 6. The Craftsmen Training Scheme and Apprenticeship Training Scheme which are adequately dovetailed and meant to bring maximum benefit to the youth in their formative years, form the centre stage of the vocational training schemes. A number of other departments have also started training activities for their respective sectors e.g. Small Industry, KVIC, handlooms, tourism (hotel management & catering), electronics, medical technicians, agriculture and rural development. These training schemes are smaller but serve a very useful and essential purpose in the overall sphere of vocational training. In spite of difficulties and shortcomings, the Vocational Training Schemes have continued to make progress especially in terms of being the primary source of manpower for the industry. 7. The Central Government mainly concentrates on laying down the policies, procedures and training standards while the management of ITIs are under the concerned III.Semester, MBA, KIPS. P. Lkshmikeerthi, Lecturer

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State Government(s)/U.Ts. In this process, the Central Government is advised by two tripartite advisory bodies namely, the National Council for Vocational Training (NCVT) and the Central Apprenticeship Council (CAC). Both the Councils have the Union Labour Minister as the Chairman. Annual meeting of the two bodies was held in the month of July, 1999. In the meeting the steps to improve the quality of training both under NCVT and CAC were discussed and concrete recommendations emerged. The following are the important recommendations: Setting up an Expert group to look into the issues relating to Vocational Training Programme for persons with disability (equal opportunities under the persons with Disability Act, 1995) and its implementation under CTS. Introduction of four new trades viz. Computer Hardware, Medical Electronics, Consumer Electronics and Industrial Electronics under CTS. Revision of space norms for workshops. Introduction of modular training for advanced skill courses for women at NVTI/RVTIs under DGE&T. CRAFTSMEN TRAINING SCHEME 8. The Craftsmen Training Scheme (CTS) under the National Vocational Training System was introduced in 1950 for imparting skill training. Training is imparted mainly in engineering trades. A few trades outside the engineering field are also covered but the bulk of the services sector and need of industries other than manufacturing are not handled by DGE&T. In the area of training, six new trades (in the areas of Information Technology, Electronics) in Craftsmen Training Scheme in different ITIs and nine new trades under Apprenticeship Training Scheme have been introduced. 9. There has been a significant growth and expansion in the network of ITIs which have grown to 4172 in the Public and Private sectors with a seating capacity of 6.78 lakh as on 31.12.99 (State-wise details presented in Annexure 5.7.3) and another 2.33 lakh under the Trade Apprentice Scheme. The Apprenticeship Training Scheme provides practical training. NATIONAL EMPLOYMENT SERVICE 10. National Employment Service covers all the States and Union Territories except Sikkim, and functions within the framework of the Employment Exchanges (compulsory III.Semester, MBA, KIPS. P. Lkshmikeerthi, Lecturer

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notification of vacancies) Act 1959. Day to Day administration of the Employment Exchanges is with the State/U.T. governments. It has a network of 953 Employment Exchanges as on 30.6.99. Special self employment promotion cells (SEPCs) have been established in 23 selected Employment Exchanges up to the end of December, 1998, 0.7 lakh persons have been placed in self employment and 1.8 lakh persons were on the live register of these cells seeking self employment assistance. 11. National Employment Service in the context of newly emerging market scenario has to be reoriented. The Employment Services has now accepted its enhanced role and is paying greater attention to compilation and dissemination of comprehensive labour market information. The important reports generated by the Employment Market Information Programme are The Quarterly Employment Review, Occupational and Educational Pattern in India, etc. There are also plan schemes for modernisation and computerisation of employment exchanges for strengthening of Employment Market information programme. 12. The Employment service continued to pay special attention to the needs of the weaker section of society. A comprehensive package of services is provided to the handicapped by 17 vocational rehabilitation centres for the handicapped. Out of these, the Vocational Rehabilitation Centre at Vadodara has been set up exclusively for disabled women. 13.These centres evaluate the residual capacities of the handicapped and provide them adjustment training, facilitating their early economic rehabilitation. Efforts are also made to assist them in obtaining other suitable rehabilitation services such as job placement and training for self-employment. Setting up of seven new Vocational Rehabilitation Centres (VRCS), 12 skill Training workshops in the Vocational Rehabilitation Centres and 26 Rural Rehabilitation Extension Centres is under consideration of the Ministry of Labour. Vocational guidance and training in confidence building is provided to job seekers belonging to the scheduled castes and the scheduled tribes at 22 coaching-cum-guidance centres. In addition, the scheme to provide facilities to SCs/STs job seekers for practicing shorthand and typing is in operation in Coaching-cum-guidance (CGCs). WELFARE OF LABOUR 14. The improvement of labour welfare and increasing productivity with reasonable III.Semester, MBA, KIPS. P. Lkshmikeerthi, Lecturer

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level of social security is one of the prime objectives concerning social and economic policy of the Government. The resources have been directed through the Plan programmes towards skill formation and development, monitoring of working conditions, creation of industrial harmony through infrastructure for health, industrial relations and insurance against disease, accident and unemployment for the workers and then families. The situation of surplus labour and workers in the unorganised segment of the economy give rise to unhealthy social practices such as bonded labour, child labour and adverse working conditions. 15. In the year 1999, Workmen Compensation Act has been revised to benefit the workers and their families in the case of death/disability. The labour laws enforcement machinery in the States and at the Centre are working to amend the laws which require changes, revise rules, regulations orders and notifications. SECOND NATIONAL COMMISSION ON LABOUR 16. The Government has set up the Second National Commission on Labour on 15th October, 1999. The Commission will suggest rationalisation of the existing laws relating to labour in the organised sector and also an umbrella legislation for ensuring a minimum level of protection to the workers in the unorganised sector. The Commission would submit its report within two years i.e. by 15.10.2001. CHILD LABOUR 17. According to the 1991 Census, the number of working children in the country was of the order of 11.28 million (State-wise details are available in Annexure 5.7.7). The existence of child labour in hazardous industries is a great problem in India. Nonavailability of accurate, authentic and up-to-date data on child labour has been major handicap in planned intervention for eradication of this social evil. Efforts are underway in the Ninth Plan to modify and improve the existing National Child Labour Project. A major activity undertaken under this scheme is the establishment of special schools to provide non-formal education, vocational training, supplementary nutrition, stipends, health care, etc. to children withdrawn from employment in hazardous industries. 18. During 1999-2000 (till end of January, 2000), 91 National Child Labour Projects have been sanctioned, in child labour endemic states for rehabilitation of nearly 1.9 lakh children who were removed from work. III.Semester, MBA, KIPS. P. Lkshmikeerthi, Lecturer

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19. A review of the implementation of various programmes for elimination of child labour reveals that even though a good beginning has been made from 1994-95 onwards, in order to make a significant dent on this age old social evil a multi-pronged strategy coupled with a massive mobilisation of resources, both physical and financial, is required. 20. Before considering any expansion of the programme, it was considered appropriate to get the existing projects evaluated through independent evaluation agencies. Accordingly, five evaluation agencies were identified for evaluating child labour projects in the States of Uttar Pradesh, Tamil Nadu, Andhra Pradesh, Orissa and Rajasthan. The reports received showed, inter alia, that the magnitude of the child labour problem can be considerably reduced through rehabilitation measures by the projects and that there is need to continue the component of special schools or camp approach. The need for awareness generation among the public has also been highlighted. REHABILITATION OF BONDED LABOUR 21. The Centrally sponsored Plan scheme for rehabilitation of bonded labour was formulated by the Ministry of Labour in 1978. Under the bonded labour system, the responsibility for identification, release and rehabilitation of free bonded labourers rest entirely with the State Governments. However, with a view to supplementing the efforts of the State Governments, a CSS was launched by the Ministry of Labour in 1978-79. The expenditure is shared equally by the Central and State Governments on 50:50 basis. Under the scheme, a bonded labour on release is immediately paid Rs.1000 as subsistence allowance and he/she is rehabilitated as per situation with a rehabilitation package of Rs.10,000 keeping in view the price escalation and increase in the cost of the rehabilitation package, cost of buffaloes, cows and other inputs during the last four years, the scheme has been modified recently by raising the rehabilitation package from the existing amount of Rs.10,000 to Rs.20,000 per bonded labour and with provision for conducting surveys for identification of bonded labour, creation of awareness, conducting evaluation studies etc. Planning Commission has also agreed to provide 100 per cent subsidy to the North Eastern States keeping in view the financial constraints faced by these States. The modified scheme would be implemented in the remaining period of the Ninth Plan and a review will be done before the start of Tenth Plan. III.Semester, MBA, KIPS. P. Lkshmikeerthi, Lecturer

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22. Since the inception of the scheme 2,80,411 bonded labour have been identified and released, out of which 2,51,569 have been rehabilitated by 31.3.2000 and Rs.50.32 crore have been released to the State Government as Central Assistance up to 31.3.2000. 23. In order to review the progress and proper monitoring of the Centrally Sponsored Scheme and other poverty alleviation programmes which are in operation for the purpose of effective rehabilitation of bonded labourer, it is proposed that monitoring of the schemes may be done at there levels i.e. National State & District Levels. In this regard, at least two workshops/monitoring meetings may be organised by the Ministry of Labour at the Central Level. High Powered committees at district and State levels may be constituted on permanent basis for monitoring the schemes. The monitoring will help in removing the shortcomings noticed in the process of their implementation and bringing improvements and equipping officers with crucial skills needed for identification, release and rehabilitation of bonded labour with extra care and dedication. This is important so that once a bonded labourer is released and rehabilitated, he/she does not go back to bondage once again. WOMEN LABOUR 24. The Ministry of Labour has set up a Women Labour Cell in 1975. The intention was to focus attention on the lot of working women with a view to improving it. The Government has enacted the Equal Remuneration Act, 1976. The Women Cell has been created in the Ministry to monitor implementation of this Act. A Central Advisory Committee has been set up to advise the Government on providing increasing employment opportunities for women. Similarly, State Advisory Committee has been constituted to monitor the Act at the State level. The Cell also gives grants-in-aid to voluntary organisations to carry out research studies on problems of women workers, their employability and the extent of their displacement on account of technological and various other changes. This scheme was introduced with the intention of furthering Governments policy of helping women to become aware of their rights and opportunities and also to become economically independent. OCCUPATIONAL SAFETY AND HEALTH 25. The Constitution of India contains specific provisions for the occupational safety and health of workers. The Directorate General of Mines Safety (DGMS) and Directorate III.Semester, MBA, KIPS. P. Lkshmikeerthi, Lecturer

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General of Factory Advice Service and Labour Institutes (DGFASLI) strive to achieve occupational safety and health in mines, factories and ports. The schemes relating to occupational safety concentrate on improvement of work environment, man-machinery interface, control and prevention of chemical hazards, development of protective gear and equipment, training in safety measures and development of safety and health information system. DIRECTORATE GENERAL OF FACTORY ADVICE, SERVICE AND LABOUR INSTITUTE (DGFASLI) 26. This organisation functions as the technical arm of the Ministry in matters concerning with safety, health and welfare of workers in factories and ports/docks. Eighty eight seminars/workshops and longer duration training programmes including the one year diploma courses in industrial safety and three months PG certificate course in occupational health have been conducted for over 2055 participants from 772 organisations during January to September, 1999. Labour Institutes in Mumbai, Kanpur, Calcutta and Chennai conducted 339 appreciation programmes for 7878 beneficiaries on safety, health and welfare. Mobile safety exhibitions were set up at 43 factories benefiting 36350 factory workers. DGFASLI completed 45 consultancy studies in the areas of hazardous assessment, environment assessment, safety audit, assessment of occupational health status at the request of various organisations. DIRECTORATE GENERAL OF MINES SAFETY (DGMS) 27. The Directorate General of Mines Safety which is a subordinate office of the Ministry of Labour is entrusted with the responsibility of enforcing the provisions of the Mines Act, 1952. With a view to ensuring enforcement of necessary safety measures in mines, inspections and enquiries are carried out by the inspecting officers. During the period April to September, 1999, 17 notices and 5 orders were issued to coal mines and 13 notices and 26 orders were issued to non-coal mines. The number of inspections and enquiries carried out during this period were 8179 and 9743 respectively. LABOUR STATISTICS 28. The Labour Bureau is responsible for collection, compilation and publication of statistical and other information regarding employment, wages, earnings, industrial relations, working conditions, etc. It also compiles and publishes the consumer price III.Semester, MBA, KIPS. P. Lkshmikeerthi, Lecturer

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index numbers for industrial and agricultural workers. The Bureau further renders necessary assistance to the States for conducting training programmes in Labour statistics of State/District/Unit levels. Data compiled for periodic returns do not meet all the information requirements for planning and policy formulation in the field of labour. With a view to bridge the gap in the availability of labour statistics, the Bureau conducts several periodic/ad hoc surveys on different aspects of labour such as: New working class Family Income and Expenditure Survey. Rural labour Enquiries. House Rent Surveys. Occupational Wage Surveys. 29. In the Ninth Plan, many initiatives have been taken by the Government for labour welfare. The Labour Bureau, Shimla has conducted evaluation studies of the Minimum Wages Act, 1948 to determine the degree of implementation in the various scheduled employment categories in different parts of the country. The Bureau has also been studying the working and living conditions of women workers and the extent of the welfare facilities available to them vis--vis the various labour laws in mining, plantation and factory sectors as well as in selected unorganised industries. WORKERS' EDUCATION 30. The Central Board of Workers Education through its regional offices is striving to educate the workers to help to avoid wasteful expenditure, adopting cost effectiveness and by enhancing productivity of qualitative nature. They have been conducting the following programmes: Rural Awareness Programme. Functional Adult Literacy Classes. Short-term programmes for the unorganised sector to educate them on their rights, ethics and hygiene. Participative Management. Orientation Courses for Rural Educators. Leadership Development Programme for Rural Workers. LABOUR RESEARCH AND TRAINING

III.Semester, MBA, KIPS.

P. Lkshmikeerthi, Lecturer

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31. V.V. Giri National Labour Institute, a fully funded autonomous body of the Ministry of Labour, conducts action-oriented research and provides training to grass root level workers in the trade union movement, both in the urban and rural areas, and also to officers dealing with industrial relations, personal management, labour welfare, etc. The Institute completed the following research projects during 1999-2000: Dynamics of Labour Market: Kearla. Women and labour Market. Labour laws, contractual parameters and conditions of construction workers. Adverse sex ratio and female labour force participation. Wage determination in rural labour force markets. Information on requirements for rural labour. 32. The following study was however of utmost significance Study on payment of wages wholly in kind and perceptions regarding Mode of payment: A study in selected States". This Study was undertaken in pursuance of directions of the Committee of Secretaries at a meeting held on 1.4.99 for the purpose of amendment to the Minimum Wages Act, 1948. The study was completed in four states, viz. Tamil Nadu, Maharashtra, Bihar and Punjab. ROLE OF UNIONS The welfare work undertaken by the trade union agency are negligible because of lack of organisation and financial stringency. Only few unions, like the Ahmadabad Textile Labour Associations, the Mazdoor Subha of Kanpur, Indore Mill Mazdoor Sangh and Bank Employees Association, have devoted themselves to welfare work. The Ahmadabad textile Labour association spends nearly 30 % of its income on welfare activities. ROLE OF VOLUNTARY AGENCIES There are two options of labour welfare work by other agencies. (a) Social Service Agencies: Several social service agencies such as Bombay Social Service League started by the servants of India society and similar leagues in Madras and Bengal, the Shive Sena Society, the Bombay Presidency Woman's Council, the Maternity and In fact Welfare Association, the Y.M.C.A. The depressed classes mission society and III.Semester, MBA, KIPS. P. Lkshmikeerthi, Lecturer

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many other mission societies play an important role in organizing the welfare work, both the helping employers and labour and by independent efforts. These agencies have provided various welfare activities, like education, indoor and outdoor games, establishment of co-operative societies, night schools and libraries etc.

(b) Municipalities. A few municipalities and municipal corporations have also taken special welfare measures such as co-operative credit societies, maternities and nursery schools, adult schools, creches, etc. these progressive municipalities are of Bombay, Calcutta, Delhi, Kanpur, Madras, Ajmer etc. Gratuity Gratuity is a lump sum amount that your employer pays you when you retire or resign from the organization. An Employee does not contribute any portion of his salary towards this amount. Gratuity is paid out at the time of superannuation (if you retire at the age of 58), when you retire (at any other age) or resignation, and in the event of your death or being rendered disable because of an accident or illness. You need to have at least five full years of service with an employer to qualify for gratuity. This rule is relaxed in the last instance. In the event of your death, the gratuity will be paid to your nominee. Calculate Gratuity Enter monthly basic pay

Enter monthly dearness allownces(DA)

No. of years served

No. of months served

Covered under payment of gratuity ACT 1972 Yes No

Total Gratuity= 30288.46 # last drawn monthly salary as on date is taken into account # if total period served with the current employer is less than 5 years no gratuity is payable to any individual III.Semester, MBA, KIPS. P. Lkshmikeerthi, Lecturer

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# for calculation of gratuity period served at a stretch with one employer is counted # salary includes only basic pay and dearness allowance # seasonal establishments are not covered in this calculator # salary remains same for the last ten month # only commission on salary paid on turnover basis is included CASE-1 You are covered Under the Payment of Gratuity Act, 1971: Gratuity shall be calculated as per the below formula: Gratuity = Last drawn salary x 15/26 x No. of years of service Your last drawn salary will comprise your basic + DA. For computation of gratuity, your service period will be rounded off to the nearest full year. CASE-2 You are not covered Under Payment of Gratuity Act, 1971: Gratuity shall be calculated as per the below formula Gratuity = Last drawn salary x x No. of years of service Your last drawn salary will comprise your basic + DA+ commission on sales on turnover basis. For computation of gratuity, your service period will not be rounded off to the nearest full year. While calculating completed years, any fraction of the year will be ignored. For instance, if the employee has a total service of 20 years, 10 months and 25 days, only 20 years will be factored into the calculation. GRATUITY EXEMPTION: Death-cum-retirement gratuity received by employees of central or state governments and local authorities is exempt without limit. Gratuity received under the Payment of Gratuity Act, 1971 is exempt to the extent that it does not exceed 15 days' salary for every completed year of service calculated on the last drawn salary subject to a maximum of Rs 3.5 lakh. Any other gratuity is exempt to the extent that it does not exceed one half-month salarys for each year of completed service calculated on the basis of average salary for 10 immediately preceding months subject to a maximum of Rs 3.5 lakh. The ceiling of Rs 3.5 lakh applies to the aggregate of gratuity received from one or more employers in the same or different years. Provident Fund

III.Semester, MBA, KIPS.

P. Lkshmikeerthi, Lecturer

335. EMPLOYEE WELFARE & LEGISLATION

Provident Fund Calculator Enter current age

Enter retirement age

Enter current EPF balance

Enter monthly basic pay

Enter monthly dearness allowance

Enter (%)contribution to EPF

Enter expected (%)salary hike

All fields are mandatory!

The EMPLOYEES PROVIDENT FUND scheme ensures that a certain part of your salary goes towards building a retirement corpus for you. How does it work? Twelve per cent of your salary is deducted every month and put into that retirement kitty. (There are some special circumstancesif the establishment you work for employs less than 20 persons, or has been referred to the Board for Industrial and Financial Reconstruction etc under which your contribution is 10 per cent, not 12 per cent.) Your employer also pitches in with 12 per cent of your salary every month. But of this, 8.33 per cent is diverted to your pension fundand the remaining amount put into the provident fund So, if you earn a basic salaryinclusive of dearness allowance in case your salary package specifies itof Rs 10,000 a month, a sum of Rs 1,200 will be deducted from it under the head EPF. Your employer also contributes Rs 1,200but Rs 541 of that amount is diverted to your pension fund, and only Rs 659 goes into your provident fund. Irrespective of the basic salary you earn, your employers contribution to the pension fund cannot exceed Rs 541 a month (8.33 per cent of a pensionable salary of Rs 6,500). If you wish to, and can afford to, you can contribute more than 12 per cent towards your provident fund. Your employer can, if he so chooses, match your contribution beyond the statutory 12 per cent, but few employers contribute more than they are required to under the law. Your contribution to Provident fund and your total balance in EPF earns interest also and grows with time. The rate of interest is fixed by the central government, in consultation with a central board of trustees, every year in March-April. The interest is credited to your account on a monthly running balance with effect from the last day in each year.

III.Semester, MBA, KIPS.

P. Lkshmikeerthi, Lecturer

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In case you have changed more than one job in a year, you can still get your provident fund money from various employers by transferring the amounts and consolidating them in your current PF account. You will need to fill up and submit Form 13 for this. Provident Fund Calculator tries to find out the estimated value of PF amount that shall be accumulated by you at the time of retirement, keeping in view your age, current salary, percentage hike in salary in future and employer and employees contribution to PF fund. As this calculator is based on the information provided by you, actual amount can vary as the salary hike and the future rates cannot be predicted.

III.Semester, MBA, KIPS.

P. Lkshmikeerthi, Lecturer