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Unit 12: Welfare

Employee or labour welfare is a comprehensive term including various services, benefits and Notes
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 in addition
to normal wages and other economic rewards available to employees as per the legal provisions.
According to Dr Parandikar, "Labour welfare work is work for improving the health, safety and
general well being and the industrial efficiency of the workers beyond the minimum standard
laid down by labour legislation". Welfare measures may also be provided by the government,
trade unions and non-government agencies in addition to the employer. The basic purpose of
labour welfare is to enrich the life of employees and keep them happy and contented. Welfare
measures may be both statutory and voluntary. Labour laws require the employer to extend
certain benefits to employees in addition to wages. Voluntary benefits are the result of employer's
generosity, enlightenment and philanthropic feelings.
According to the Royal Commission on Labour, Labour welfare is a term which must necessarily
be elastic, bearing a somewhat different interpretation in one country from another, according
to different social customs, the degree of industrialization and educational level of workers.

The Oxford Dictionary defines labour welfare as "efforts to make life worth living for worker"
Chamber's Dictionary defines welfare as "a state of faring or doing well; freedom from calamity,
enjoyment of health, prosperity." The ILO report refers to labour welfare as "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 provided with amenities conducive to good health and high morale." (Sharma; Mamoria)

Notes Scope of Labour Welfare
The Labour Investigation Committee: Anything done for intellectual, physical, moral and
economic betterment of the workers, whether by employers, by government or by other
agencies over and above what is laid down by law, or what is normally expected on the
part of the contracted benefits for which workers may have bargained."
The Committee on Labour Welfare: Today, welfare is generally accepted by employers.
The state steps in to widen the area of applicability only. Welfare is being looked at as a
social right of workers. The committee described it as social security measures that
contribute to improve the conditions under which workers are employed in India. (1969
Report). Labour welfare includes both statutory as well as non-statutory activities under
taken by employers, trade unions and both the central and state governments for the
physical and mental development of workers.

12.1 Importance

The significance of welfare measures was 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 the form of greater efficiency.
Harsh times are never long-lasting, but continuing the same seems almost continuous in the
process. Employee welfare initiatives should not be put on the back burner in the name of
cutting costs. Being prudent in spending is the key here, with constant communication to ward
off adverse rumors and protect employee sentiments.
The working environment in a factory adversely affects the health of employees because of
excessive heat or cold, noise, fumes, dust and lack of sanitation and pure air. Such oppressive

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