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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, whichmay 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.

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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

 promote a healthy work environment

• Facilities like housing schemes, medical benefits, and education and

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.

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• 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

 promote healthy industrial relations thereby maintaining industrial peace.

• The social evils prevalent among the labors such as substance abuse, etc

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

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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" (État-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 "social-

well-being state".

 Early welfare states

• The "concept of what one might call a welfare state" appeared during the Abbasid 

Caliphate in the 8th century.

• The concepts of welfare and  pension were introduced in early Islamic law as

forms of  Zakat (charity), one of the five Pillars of Islam, since the time of Caliph al-

Mansur .

• 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

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• 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 "cradle-

to-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.

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• 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 friendlysocieties, 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:

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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 Möller 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.

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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 EXTRAMURAL

(Within the establishment) (Outside the establishment)

Drinking water Housing

Toilets Education facilities

Crèches Maternity Benefits

Washing & Bathing facilities Transportation

Uniforms and Protective cloting Sports facilities

Recreation facilities Leave travel

Subsidized food at canteens Holiday homes

Medical Aid Cooperative stores

Rest shelters Social-Insurance, Vocational training

STATUTORY WELFARE SCHEMES

The statutory welfare schemes include the following provisions:

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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.

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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 alabour 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.

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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 office’s 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 officers……In a factory wherein 500 or more workers are

ordinarily employed , at least one welfare officer must be appointed.

The Malaviya Committee’s 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.

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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.

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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

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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

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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

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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

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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

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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. Non-

availability 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.

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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.

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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

Government’s 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

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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

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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-à-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

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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

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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 1972Yes  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

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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 ½ 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

salary’s 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

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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 aresome special circumstances—if 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 isdiverted to your pension fund—and the remaining amount put into the provident fund

So, if you earn a basic salary—inclusive of dearness allowance in case your salary

 package specifies it—of 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 1,200—but Rs 541 of thatamount is diverted to your pension fund, and only Rs 659 goes into your provident fund.

Irrespective of the basic salary you earn, your employer’s 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.

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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 employee’s contribution to PF fund.

As this calculator is based on the information provided by you, actual amount can vary asthe salary hike and the future rates cannot be predicted.