UNIVERSITY OF PETROLEUM & ENERGY STUDIES

COLLEGE OF LEGAL STUDIES

BA.,LLB (HONS.) SEC- A

SEMESTER- 8ACADEMIC YEAR: 2010-2015 SESSION: JANUARY-MAY

PROJECT

FOR

LABOUR LAW II

(LLBG…)

Under the Supervision of: PRIYA MISHRA

NAME: ABHISHEK

CHHABRA

SAP NO: 500011974

ROLL NO R450210005

HEALTH AND WELFARE PROVISIONS FOR A WORKER IN A

FACTORY

SOCIAL SECURITY AND LABOUR WELFARE IN INDIASocial security is one of the pillars on which the structure of a welfare state rests, and it

constitutes the hand core of social policy in most countries. It is through social security measures

that the state attempts to maintain every citizen at a certain prescribed level below which no one

is allowed to fall. It is the security that society furnishes through appropriate organization,

against certain risks to which its member are exposed(ILO,1942). Social security system

comprises health and unemployment insurance, family allowances, provident funds, pensions

and gratuity schemes, and widows and survivors allowances. The essential characteristics of

social insurance schemes include their compulsory and contributory nature; the members must

first subscribe to a fund from which benefits could be drawn later. On the other hand, social

assistance is a method according to which benefits are given to the needy persons, fulfilling the

prescribed conditions, by the government out of its own resources.

The present section reviews labour welfare activities in India with particular emphasis on the

unorganized sector. Although provisions for workmen’s compensation in case of industrial

accidents and maternity benefits for women workforce had existed for long, a major

breakthrough in the field of social security came only after independence. The constitution of

India(Article 41) laid down that the state shall make effective provision for securing the right to

public assistance in case of unemployment, old age, sickness and disablement and in other cases

of undeserved want. The government took several steps in compliance of the constitutional

requirements. The workmen’s compensation Act, 1926, was suitably revised and social insurance

programmes were developed for industrial workers. Provident funds and gratutity schemes were

introduced in most industries, and maternity legislation was overhauled.

Subsequently, state governments instituted their own social assistance programmes. The

provisions for old age comprise pension, provident fund and gratuity schemes. All the three

provisions are different forms of retirement benefits. Gratuity is a lump sum payment made to a

worker or to his/her heirs by the company on termination of his/her service due to retirement,

invalidity, retrenchment or death.

WelfareWelfare is the provision and maintenance of conditions of life for individuals by the community.

Welfare has a positive and negative aspect. Negative welfare is the provision by the state or other

institutions of a safety net or the distribution of benefits according to some criteria; so-called

positive welfare is the provision of opportunities for people to help themselves. This contrast lies

behind foreign-aid strategies which concentrate on providing skills or seed capital rather than

food parcels, for example. The concept of positive and negative welfare is related to the concepts

of positive and negative freedom. Marxists support both positive and negative welfare, but

recognize that the market inevitably generates inequality and a class of people inevitably the

recipients of welfare, who have nothing to sell but their labour power, alongside a class of people

who live off the proceeds of exploitation, invariably the providers of welfare. Only by bringing

the means of production under through going proletarian democracy can the very need for

welfare be abolished.

Concept of Labour WelfareThe concept of labour welfare is flexible and elastic and differs widely with time, region,

industry, social values and customs, degree of industrialization, the general socio-economic

development of the people and the political ideologies prevailing at a particular time. It is also

moulded according to the age-groups, socio-cultutral background, marital and economic status

and educational level of the workers in various industries.

In its broad connotation, the term welfare refers to a state of living of an individual or group in a

desirable relationship with total environment-ecological, economic, and social. Conceptually as

well as operationally, labour welfare is a part of social welfare which in turn, is closely linked to

the concept and the role of the state. The concept of social welfare, in its narrow contours, has

been equated with economic welfare. As these goals are not always be realized by individuals

through their efforts alone, the government came into the picture and gradually began to take

over the responsibility for the free and full development of human personality of its population.

The concept of labour welfare has recived inspiration from the concepts of democracy and

welfare state. Democracy does not simply denote a form of government; it is rather a way of life

based on certain values such as equal rights and privileges for all. The operation of welfare

services , in actual practice, brings to bear on it different reflections representing the broad

cultural and social conditions. In short, labour wlfare is the voluntary efforts of the employers to

establish, within the existing industrial system, working and sometimes living and cultural

conditions of the employees beyond what is required by law, the custom of the industry and the

conditions of the market.

The constituents of labour welfare includes working hours, working conditions, safety, industrial

health insurance , workmen’s compensation, provident funds, gratuity, pensions, protection

against indebtness, industrial housing, rest rooms, canteens, crèches, wash places, toilet facilities,

lunches, reading rooms, holiday rooms, worker’s education, co-operative stores, excursions,

playgrounds, and scholarships and other help for education of employee’s children.

Principle of labour welfareCertain fundamental considerations are involved in the concept of labour welfare. The following

are the more important among them.

Social responsibility of industry:

this principle is based on the social conception of industry and its role in the society that

is, the understanding that social responsibility of the state is manifested through industry.

It is assumed that labour welfare us an expression of industry’s duty towards its

employees. Social responsibility means that the obligation of the industry to pursue those

policies, to take such decisions, and to follow those lines of action which are desirable in

terms of the objectives and values currently obtaining in the society. The values of the

Indian community are enshrined in the constitution of the country. Labour welfare is not

embroidery on capitalism nor the external dressing of an exploitative management;

rather, it is an expression of the assumption by industry of its responsibility for its

employees.

Democratic Values

The principle of democratic values of labour welfare concedes that workers may have

certain unmet needs for no fault of their own, that industry has an obligation to render

them help in gratifying those needs, and that workers have a right of determining the

manner in which these needs can be met and of participating in the administration of the

mechanism of need gratification. The underlying assumption to this approach is that the

worker is a mature and rational individual who is capable of taking decisions for

himself/herself.

Adequacy of wages

The third principle of labour welfare is adequacy of wages; it implies that labour welfare

measures are not substitute for wages. It will be wrong to argue that since workers are

given a variety of labour welfare services, they need be paid only low wages. Right to

adequate wage is beyond dispute,

Efficiency

The fourth principle of labour welfare lays stress on the dictum that to cultivate welfare is

to cultivate efficiency. Even those who deny any social responsibility for industry do

accept that an enterprise must introduce all such labour welfare measures which promote

efficiency. It has been often mentioned that workers education and training, housing, and

diet are the three most important aspects of labour welfare, which always accentuate

labour efficiency.

Re-personalization

Sinch industrial organization is rigid and impersonal, the goal of welfare in industry is the

enrichment and growth of human personality. The labour welfare movement seeks to

bring cheer, comfort, and warmth in the human relationship by treating man as an

individual , with quiet distinct needs and aspirations.

Totality of welfare

the final principle of labour welfare is that the concept of labour welfare must permeate

throughout the hierarchy of an organization, and accepted by all levels of functionaries in

the enterprise.

Scope of labour welfare workIt is somewhat difficult to accurately lay down the scope of labour welfare work, especially

because of the fact that labour class is composed of dynamic individuals with complex needs.

In a world of changing values, where ideologies are rapidly undergoing transformation, rigid

statements about the field of labour welfare need to be revised. Labour welfare work is

increasing with the growing knowledge and experience of techniques. An able welfare officer

would, therefore, include in his welfare programme the activities that would be conducive to the

well-being of the worker and his family. The test of the welfare activity is that it removes,

directly or indirectly, any hindrance, physical or mental of the worker and restores to him the

peace and joy of living the welfare work embraces the worker and his family.

The following list , which is by no means exhaustive, gives the items under which welfare work

should be conducted inside and outside the workplace:

1. Conditions of work environment

the workshop sanitation and cleanliness, humidity, ventilation, lighting, elimination of

dust, smoke, fumes and gases, convience and comfort during work, operative postures,

sitting arrangements ect., distribution of work hours and provision for rest time, breaks

and workmen’s safety measures.

2. Workmen health services

There should include factory health center, medical examination of workers, factory

dispensary and clinic for general treatment, infant welfare, women’s general education,

worker’s recreation facilities, education etc.

3. Labour welfare programme

these should cover factory council consisting of representatives of labour and employers;

social welfare departments; interview and vocational testing; employment, follow-up,

research bureau, workmen’s arbitration council.

4. Labour’s economic welfare programme

These should include co-operatives or fair price shops for consumer necessities, co-

operative credit society, thrift shcemes and savings bank, health inusurance, employment

bureau, etc.

EMPLOYEE WELFAREINTRODUCTION

Employee welfare defines as "efforts to make life worth living for workmen". These

efforts have their origin either in some statute formed by the state or in some local custom

or in collective agreement or in the employer's own initiative.

• To give expression to philanthropic and paternalistic feelings.

• To win over employee's loyalty and increase their morale.

• To combat trade unionism and socialist ideas.

• To build up stable labour force, to reduce labour turnover and absenteeism.

• To develop efficiency and productivity among workers.

• To save oneself from heavy taxes on surplus profits.

• To earn goodwill and enhance public image.

• To reduce the threat of further government intervention.

• To make recruitment more effective (because these benefits add to job

appeal).

Principles of Employee Welfare Service

Following are generally given as the principles to be followed in setting up a employee welfare

service:

The service should satisfy real needs of the workers. This means that the manager must

first determine what the employee's real needs are with the active participation of

workers.

The service should such as can be handled by cafeteria approach. Due to the difference

in Sex, age, marital status, number of children, type of job and the income level of

employees there are large differences in their choice of a particular benefit. This is

known as the cafeteria approach. Such an approach individualises the benefit system

though it may be difficult to operate and administer.

The employer should not assume a benevolent posture.

The cost of the service should be calculate and its financing established on a sound basis.

There should be periodical assessment or evaluation of the service and necessary timely

on the basis of feedback.

Types of Employee Welfare ServicesSafety Services

Prevention of accidents is an objective which requires explanation.

The costs of accidents are enormous in suffering to the injured, in reduction or loss of earnings,

in disabilities and incapacities which afflict those involved and in compensation, insurance and

legal costs, in lost time, filling in reports and attending to enquiries, and in spoilage of materials,

equipment and tools to management.

Accidents are the consequence of two basic factors: technical and human. Technical

factors include all engineering deficiencies, related to plant, tools material and general work

environment. Thus, for example, improper lighting, inadequate ventilation, poor machine

guarding and careless housekeeping are some hazards which may cause accidents. Human

factors include all unsafe acts on the part of employees. An unsafe act is usually the result of

carelessness.

Young and new employees, because of their difficulty in adjusting to the work situation

and to life in general, also have many more accidents than do old and nature workers.

The Phenomenon of Accident Proneness. Some persons believe wrongly in the theory that

certain individuals are accident prone, that is, they have some personality trait as opposed to

some characteristic of the environment which predisposes them to have more accidents than

others in work condition where the risk of hazards is equal to all.

Components of a Safety Service

Among the many components of a safety service the following have proved effective when

applied in combination:

Appointment of safety officer

In big organizations, the appointment of a safety officer to head

the safety department is a must. In small organizations, the personnel manager may look

after the functions of this department. The head of the safety department, who is usually

a staff man, is granted power to inspect the plant for unsafe condition, to promote sound

safety practices (through posters an d safety campaigns), to make safety rules, and to

report violations to the plant manager.

Support by line management

The head of the safety department, whether enjoying a staff or a

functional position, by himself, cannot make a plan safe. His appointment lulls line

management into assuming that all its safety problems have been solved.

Elimination of hazards

Although complete elimation of all hazards is virtually an impossibility but following

steps can be taken to help reduce them.

Personal protective equipment

Endless variety of personal safety equipment is available nowadays which can be used to

prevent injury.

Safeguarding machinery

Guards must be securely fixed to all power driven machinery.

Materials handling

Though often ignored, the careless handling of heavy and inflammable materials is an

important source of several injuries and fire.

Hand tools

Minor injuries often result from improperly using a good tool or using a poorly designed

tool. Therefore, close supervision and instruction should be given to the employees on

the proper tool to use an the proper use of the tool.

Safety training, education and publicity

Safety training is concerned with developing safety skills, whereas safety education is

concerned with increasing contest programmes, safety campaigns, suggestion awards,

and various audiovisual aids can be considered as different forms of employee education.

Safety inspection

An inspection by a trained individual or a committee to detect evidence of possible safety

hazards (such as poor lighting, slippery floors, unguarded machines, faulty electrical

installations, poor work methods and disregard of safety rules) is a very effective device

to promote safety.

Health Services The prevention of accident constitutes only on segment of the function of employee

maintenance. Another equally important segment is the employee's general health, both physical

and mental.

There are two aspects of industrial health services

1. Preventive

2. Curative, the former consists of

3. pre-employment and periodic medical examination,

4. removal or reduction of health hazards to the maximum extent possible,

5. Surveillance over certain classes of workers such as women, young persons and persons

exposed to special risks.

Employee Welfare Officer Section 49 of the factories act provides that in every factory wherein 500 or more

workers are ordinarily employed the employer shall appoint at least one welfare officer.

The welfare officer should possess;

(i) a university degree;

(ii) degree or diploma in social service or social work or social welfare from a recognized

institution; and

(iii) adequate knowledge of the language spoken by the majority of the workers in the area

where the factory is situated.

Supervision

Counseling workers

Advising management

Establishing liaison with workers

Working with management and workers to improve productivity.

Working with outside public to secure proper enforcement of various acts.

Health of Employees Cleanliness. Every factory shall be kept clean by daily sweeping or washing the floors

and work rooms and by using disinfectant where necessary.

Disposal of wastes and effluents. Effective arrangements shall be made for the disposal

of wastes and for making them innocuous.

Ventilation and temperature. Effective arrangements shall be made for ventilation and

temperature so as to provide comfort to the workers and prevent injury to their health.

Dust and fume. Effective measures shall be taken to prevent the inhalation and

accumulation of dust and fumes or other impurities at the work place.

Artificial humidification. The State Government shall make rules prescribing standard

of humidification and methods to be adopted for this purpose.

Overcrowding. There shall be in every work room of a factory in existence on the date of

commencement of this act at least 9.9cubic meters and of a factory built after the

commencement of this act at least 4.2 cubic meters of space for every employee.

Lighting. The State Government may prescribe standards of sufficient and suitable

lighting.

Drinking Water. There shall be effective arrangement for wholesome drinking water for

workers at convenient points.

Latrines and urinals. There shall be sufficient number of latrines and urinals, clean,

well-ventilated, conveniently situated and built according to prescribed standards

separately for male and female workers.

Spittoons. There shall be sufficient number of spittoons placed at convenient places in

the factory.

Safety of Employees Fencing of machinery . All dangerous and moving parts of a machinery shall be securely

fenced. Screws, bolts and teeth shall be completely encased to prevent danger.

Work on or near machinery in motion. Lubrication or other adjusting operation on a

moving machinery shall be done only by a specially trained adult male worker.

Employment of young persons on dangerous machines. No young person shall be

allowed to work on any dangerous machine (so prescribed by the state government)

unless he is sufficiently trained or is working under the supervision of knowledgeable

person.

Device for cutting off power. Suitable device for cutting of power in emergencies shall

be provided.

Hoists and lifts. These shall be made of good material and strength, thoroughly

examined at least once in every six months and suitably protected to prevent any person

or thing from being trapped.

Welfare of Employees

Chapter V of the factories Act contains provisions about the welfare of employees. These are as

follows:

• There shall be separate and adequately screened washing facilities for the use of

male and female employees.

• There shall be suitable places provided for clothing not worn during working

hours and for the dying of wet clothing.

• There shall be suitable arrangement for all workers to sit for taking rest if they are

obliged to work in a standing position.

• There shall be provided the required number of first-aid boxes or cupboard (at the

rate of one for every 150 workers) equipped with the prescribed contents readily

available during the working hours of the factory.

• The State Government may make rules requiring that in any specified factory

employing more than 250 employees a canteen shall be provided and maintained

by the occupier for the use of the employee.

• There shall be provided sufficiently lighted and ventilated lunch room if the

number of employees ordinarily employed is more than 150.

Restrictions in the Factories Act on the employment of young persons:

1. Prohibition as to employment of children (Section 67)

No child who has not completed his fourteenth year shall be required or allowed to work in any

factory.

2. Employment of Children and Adolescent (Section 68)

A child who has completed his fourteenth year or an adolescent shall not be required or allowed

to work in any factory unless following conditions are fulfilled:

a. The manager of the factory has obtained a certificate of fitness granted to such

young

b. While at work, such child or adolescent carries a token giving reference to such

certificate.

3. Certificate of fitness (Section 69)

Before a young person is employed in the factory, a certifying surgeon has to certify that such

person is fit for that work in the factory.

Welfare Funds

In order to provide welfare facilities to the workers employed in mica, iron, ore,

manganese ore and chrome ore, limestone and dolomite mines and in the beedi industry, the

welfare funds have been established to supplement the efforts of the employers and the State

Government under respective enactments.

The welfare measures financed out of the funds relate to development of medical

facilities, housing, supply of drinking water, support for education of dependents and recreation,

etc.

Voluntary Benefits

Benefits are also given voluntarily to workers by some progressive employers. These

include loans for purchasing houses and for educating children, leave travel concession, fair

price shops for essential commodities and loans to buy personal conveyance.

Machinery Connected with Employee Welfare Work

1. Chief inspector of Factories

It is the duty of the Chief inspector of factories (who generally works under the

administrative control of the labour commissioner in each state) to ensure enforcement of

various provisions of Factories Act i8n respect of safety, heath and welfare of workers.

2. Central Labour Institute

The institute was set up in Bombay in 1966 to facilitate the proper implementation of the

Factories Act, 1948; to provide a centre of information for inspectors, employers, workers

and others concerned with the well being of industrial labour and to stimulate interest in the

application of the principles of industrial safety, health and welfare.

3. National Safety Council

The National Safety Council was wet up on 4th March, 1966 in Bombay at the initiative of

the Union Ministry of Labour and Rehabilitation, Government of India, as an autonomous

national body with the objective of generating developing and sustaining an movement of

safety awareness at the national level.

4. Director General of Mines Safety

The Director General of Mines Safety enforces the Mines Act, 1952. He inspects electrical

installation and machinery provided in the mines and determines the thickness of barriers of

2 adjacent mines in order to prevent spread of fire and danger of inundation.

SOCIAL SECURITY

The connotation of the term "Social Security" varies form country to country with different

political ideologies. In socialist countries, the avowed goal is complete protection to every

citizen form the cradle to the grave.

There are some components of Social Security:

Medical care

Sickness benefit

Unemployment benefit

Old-age benefit

Employment injury benefit

Family benefit

Maternity benefit

Invalidity benefit and

Survivor's benefit

Social Securities may be of two types:

1. Social assistance under which the State finances the entire cost of the facilities and

benefits provided.

2. Social insurance, under the State organizes the facilities financed by contributions

from the workers and employers, with or without a subsidy from the state.

Social Security in India At present both types of social security schemes are in vogue in our country. Among

the social assistance schemes are the most important.

The social insurance method, which has gained much wider acceptance than the

social assistance method, consists of the following enactments.

The workmen's Compensation Act, 1961.

The Employee's State Insurance Act, 1948.

The Maternity Benefit Act, 1961.

I. Employees' compensation Act, 1923

a. Coverage. This Act covers all workers employed in factories, mines, plantations,

transport undertakings, construction works, railways, ships, circus and other hazardous

occupations specified in schedule II of the Act.

The Act empowers the State Government to extend the coverage of the Act by adding

any hazardous occupation to the list of such occupations is schedule II.

1. Administration. The Act is administered by the State Government which

appoints Commissioners for this purpose under sec. 20 of the Act.

2. Benefits. Under the Act, compensation is payable by the employer to a workman

for all personal injuries caused to him by accident arising out of and in the course of his

employment which disable him for more than 3 days.

II. Employees' State Insurance Act, 1948

1. Other than seasonal factories, run with power and employing 20 or more workers.

2. Administration. The Act is administered by the ESI corporation, an autonomous

body consisting of representatives of the Central and State Governments, employers,

employees, medical profession and parliament.

3. Benefits. The Act, which provides for a system of compulsory insurance, is a

landmark in the history of social security legislation in India.

i. Medical Benefit. An insured person or (where medical benefit bas

been extended to his family) a member of his family who requires

medical treatment is entitled to receive medical benefit free of

charge.

ii. Sickness Benefit. An insured person, when he is sick, is also

entitled to get sickness benefit at the standard benefit rate

corresponding to his average daily wage.

iii. An insured woman is entitled to receive maternity benefit (which

is twice the sickness benefit rate) for all days on which she does

not work for remaining during a period of 12 weeks of which not

more than 6 weeks shall precede the expected date of confinement.

iv. The Act makes a three-fold classification of injuries in the same

way as is done in the workmen's compensation Act.

3. The Maternity Benefit Act, 1961

Maternity benefit is one of the important benefits provided under the Employees State

Insurance Act, 1948. Another important legislation in this respect is the Maternity

Benefit Act, 1961. The Act covers only those persons who are not covered by the

Employees State Insurance Act. The Act entitles a woman employee to claim maternity

leave from her employer if she has actually worked for a period of at least 160 days in the

12 months immediately proceeding the day of her expected delivery.

The act further provides for the payment of medical bonus of Rs. 250 to the confined

woman worker. The committee on the status of women in India 1974 has, therefore,

recommended the following changes in the Act:

1. The administration of the fund should follow the pattern already established by the

ESIC.

2. For casual labour a minimum of 3 months of service should be considered as

qualification service for this benefit.

3. This will provide greater incentive to women workers to participate in trade union

activities.