2 Employee Welfare and Social Security

1 2 EmployeeWelfareandSocialSecurityEmployee WelfareandSocialSecurity(AsperNewSyllabu sof5thSemesterBBM,BangaloreUniversity201 4) NEWDELHI NAGPUR BENGALURU HYDERABAD CHENNAI PUNE LUCKNOW AHMEDABAD ERNAKULAM BHUBANESWAR INDORE KOLKATA GUWAHATII ntroduction3 AuthorsNopartofthispublicationmayberepro duced,storedinaretrievalsystem,ortransmi ttedinanyformorbyanymeans,electronic,mec hanical,photocopying, :2014 , Ramdoot PoojaApartments ,4-B,MurariLalStreet,AnsariRoad,DaryaGan j, :011-23270392,23278631;Fax:011-23256286 Nagpur:KundanlalChandakIndustrialEstate, GhatRoad, :0712-2738731,3296733;Telefax:0712-27212 16 (Old12/1),1stFloor,NexttoHotelHighlands, MadhavaNagar,RaceCourseRoad, :080-22286611,22385461,41138821,22281541 ,Lingampally,BesidesRaghavendraSwamyMath am,Kachiguda, :040-27560041,27550139 Chennai:8/2 Madley2ndstreet, , :09320490962 Pune:FirstFloor,"Laksha"Apartment, ,Mehunpura,Shaniwarpeth(NearPrabhatTheat re), :020-24496323/24496333;Mobile:0937057933 3 Lucknow:HouseNo731,ShekhupuraColony, ,Aliganj, :0522-4012353;Mobile:09307501549 Ahmedabad:114, SHAIL ,1stFloor, , ,NavrangPura, :079-26560126;Mobile:09377088847 Ernakulam:39/104A,LakshmiApartment,Karik kamuriCrossRd.

2 ,Ernakulam,Cochin-622011, :0484-2378012,2378016;Mobile:09387122121 Bhubaneswar:5 StationSquare,Bhubaneswar-751001(Odisha) .Phone:0674-2532129,Mobile:09338746007 Indore:KesardeepAvenueExtension,73,Naray anBagh, ,IIIrdFloor,NearHumptyDumptySchool,Indor e-452007( ).Mobile:09303399304 Kolkata:108/4,BeliaghataMainRoad,NearIDH ospital, ,Kolkata-700010,Phone:033-32449649,Mobil e:7439040301 ,BehindPragjyotishCollege,NearSharmaPrin tingPress, ,Guwahati-781009,(Assam).Mobile:09883055 590,08486355289,7439040301 DTPby: , , ,thesignificanceandutilityoflabourwelfar eandsocialsecuritymeasuresandbenefitsare manifestedthatnecessitatedvariousunivers itiesinthepasttointroduceasubjecton LabourWelfareandSocialSecurity . ,universitiesinitiatedtheintroductionoft hesubjecton LabourWelfareandSocialSecurity , LabourWelfareandSocialSecurity , ,StrandLeader,BusinessManagement, :Theobjectiveistoenablestudentstoacquire skillsinLabourWelfare& :SocialandLabourWelfare08hrsSocialWelfar e;LabourWelfare:Concept,Scope;Philosophy andPrinciplesofLabourWelfare;IndianConst itutionandLabourWelfare;LabourWelfarePol icyandFive-YearPlans,HistoricalDevelopme ntofLabourWelfareinIndia;Unit2:IndianLab ourOrganization14hrsImpactofILOonLabourW elfareinIndia;AgenciesofLabourWelfareand theirRoles,LabourWelfareProgrammes:Statu toryandNon-statutory, ;WelfareOfficer:Role, :SocialSecurity12hrsConceptandScope;Soci alAssistanceandSocialInsurance,Developme ntofSocialSecurityinIndia; :LabourAdministration 108hrsEvolutionofMachineryforLabourAdmin istration.

3 CentralLabourAdministrativeMachineryinIn dia, :LabourAdministration 208hrsDirectorGeneralofEmploymentandTrai ning;DirectorGeneralofFactoryAdviceServi ce;ProvidentFundOrganization;ESIS chemes;CentralBoardforWorkers Preparationofalistofstatutorywelfaremeas uresbyvisitingindustry Preparationofalistofvoluntarywelfaremeas uresbyvisitingindustry , ,PrinciplesofLabourWelfare,Oxford&IBHP ublishingCo., , ,LabourWelfareinIndia,SreeRamCentreforIn dustrialRelationsandHumanResources, , ,AspectsofLabourWelfareandSocialSecurity ,HimalayaPublishing,House, ,LabourWelfareAdministrationinIndia,Deep &DeepPub., , ,Sankaran,Saraswathi,LabourWelfare,Trade UnionismandIndustrialRelations,HimalayaP ublishingHouse, , ,IndianLabourProblems,ChaitanyaPublishin gHouse, , ,LabourProblemsandSocialWelfare, , , ,EconomicsofLabourandIndustrialRelations , , ,HimalayaPublishingHouse, ,EmployeeSafety,IndustrialHealthandOccup ationalHazardsandRisks48 196 2108 116 SkillDevelopment117 , , AllIndiaTradeUnionCongress (AITUC)

4 , , ,variouslabourleadersnarratedingreatleng thcontributionsmadebythemandtheIndiaTrad eUnionMovement[ITUM] ,thegroundrealitiesshowthatintheyearsfol lowingIndia sindependence,theITUM membershiphasremainedstagnant, ,moresotothepublicsectorenterprises fromwhereover70% ,globalisationresultedinindividualbargai ninginplaceofcollectivebargaining, ,thetotalworkforcewasabout314millionandt heorganisedsectoraccountedforonly27milli onoutofthisworkforce,theNSSO , ,1948,theShopsandCommercialEstablishment sActsofStateGovernments,theIndustrialEmp loymentStandingOrdersAct, ,ischaracterisedbythelackoflabourlawcove rage,seasonalandtemporarynatureofoccupat ions,highlabourmobility,dispersedfunctio ningofoperations,casualisationoflabour,l ackoforganisationalsupport,lowbargaining power,etc., , ,smallandmarginalfarmers,sharecroppers,p ersonsengagedinanimalhusbandry,fishing,h orticulture,bee-keeping,toddytapping,for estworkers,ruralartisans,etc.

5 ,whereasintheurbanareas,itcomprisesmainl yofmanuallabourersinconstruction,carpent ry,trade,transport,communicationetc.,and alsoincludesstreetvendors,hawkers,headlo adworkers,cobblers,tinsmiths,garmentmake rs, , , , , , ,thecomponentofsocialassistanceismoreimp ortantinthepublicly-managedschemes IntheIndiancontext,SocialSecurityisacomp rehensiveapproachdesignedtopreventdepriv ation, ,particularlyofthelowerlevelmaynotbesuff icienttomeettheirneedslikemedical,childr eneducation,maternityneedsofwomenemploye esandemployee swives , , :AccordingtoLordBeveridge,socialsecurity , isanattackonfivegiantsviz.,want,disease, ignorance,squalorandidleness. , thesecuritythatsocietyfurnishes, ,tosupportwhenpeopleareunabletoearnandre storetogainfulemployment. Evolution:Therearetwomainaspectssocialse curityviz., , aserviceorschemewhichprovidesbenefitstop ersonsofsmallmeansasofrightinamountsuffi cienttomeetminimumstandardsofneedandfina ncedfromtaxation.

6 Thus, :BeveridgedefinesSocialInsuranceas, thegivinginreturnforcontribution,benefit suptosubsistencelevel,asofrightandwithou tmeans-tests, , : CompulsoryParticipation:MostoftheGovernm entsincludingthesocalledcapitalisticcoun triesparticipateinandprovidesocialsecuri tymeasurestothepoorpeopleandemployeesatl owerlevels. GovernmentSponsorship:Governmentscreate, ,GovernmentofAndhraPradeshprovidesoldage pension,maternitybenefitstowomenagricult uralworkers,etc. ContributoryFinance:Thefundsnecessarytor unthesocialsecurityprogrammesarethecontr ibutionsmadebytheGovernment,employers,et c. BenefitsPrescribedinLaw:VariousGovernmen tsenactedthelawsinordertoenforcetheimple mentationofthesocialsecuritymeasures. :Acomprehensivesocialsecuritywasoriginal lyintroducedinGermany,whichincludes:sick nessinsurance,accidentinsurance, sSicknessInsuranceAct,1883,TheAccidentIn suranceAct,1884andtheInvalidityandOldAge ProtectionAct, :ThesocialsecuritybenefitsinNewZealandin clude:medicalcare,sicknessbenefits,unemp loymentbenefit,injurybenefit,familybenef it,maternitybenefit,invaliditybenefit,su rvivor :ThesocialsecuritybenefitsinUKinclude:ac cidentbenefits,insuranceagainstunemploym ent,sicknessbenefits,healthbenefits, :Socialsecuritybenefitsinclude:oldageand survivor sinsurance,disablementbenefits,hospitala ndhealthcarebenefits,lay-offcompensation , :SocialsecuritymeasuresinJapaninclude.

7 Medicalcare,healthinsurance,pension,old- age,survivoranddisablementinsurance, sCompensationAct,1923enforcestheemployer toprovidecompensationtoaworkmanforanyper sonalinjurycausedbyanaccident, StateInsuranceAct,1948enforcestheemploye rstoprovidesicknessbenefits,maternityben efittowomenemployees,disablementbenefit, dependent sbenefit, ProvidentFundandMiscellaneousProvisionsA ct,1952enforcestheemployertoprovideprovi dentfund, ,1961providesformedicalbenefits, , ,Employees , ,theStudyGroup(1957-58) ,insuranceagainstsickness,maternitybenef itsunemploymentinsurance,employmentinjur y, , ,whichincludehousing,health,education,re creation,credit,canteenetc., :Mostoftheorganisationshavebeenextending thewelfaremeasurestotheiremployees,yeara fteryear, :Welfaremeasuresareprovidednotonlytoempl oyees, :TradeUnionscompetewitheachotherforgetti ngmoreandanewvarietyoffringebenefitstoth eirmemberssuchaslifeinsurance, , , sPreference:Employerspreferfringebenefit stopay-hike, ,medicalfacilitiesetc.

8 , :Humanrelationsaremaintainedwhentheemplo yeesaresatisfiedeconomically, seconomic, ,Creditfacilities,Canteen,Recreationalfa cilitiesetc.,satisfytheworker ssocialneeds, , , :Providingemployeewelfaremeasuresenhance employeestateofmind, :Employeewelfaremeasuressatisfyphysiolog ical, :Welfaremeasuresprotectthegeneralhealth, , , , , :Employersmaycommitsomemistakeswhileprov idingwelfaremeasures, :Benefitsunderthisheadincludeunemploymen tinsurance,technologicaladjustmentpay,le avetravelpay,overtimepay,leavefornegotia tion,leaveformaternity,leaveforgrievance s,holidays,costoflivingbonus,call-backpa y,lay-offpay,retiringrooms, :Benefitsunderthisheadincludeaccidentins urance,disabilityinsurance,healthinsuran ce,hospitalisationlifeinsurancemedicalca re,sickbenefits,sickleave,etc.( ) : , (Source:HumanCapital,July1999, ) :Benefitsunderthiscategoryinclude:deferr edincomeplans,pension,gratuity,provident fund,oldageassistance,oldagecounselling, medicalbenefitsforretiredemployees,trave llingconcessiontoretiredemployees, ,ParticipationandStimulation:Thiscategor ycoversthefollowingbenefits:anniversarya wards,attendancebonus,canteen,cooperativ ecreditsocieties,educationalfacilitiesbe autyparlourservices,housing,incometaxaid ,counselling,qualitybonus,recreationalpr ogrammes,stresscounselling, :Benefitsunderthiscategoryinclude:sickle avewithpay,vacationpay,paidrestandrelief time,paidlunchperiods,grievancetime,barg ainingtime, :Thiscategorycoversthebenefitssuchas:pre miumpay,incentivebonus,shiftpremium,olda geinsurance,profitsharingandunemployment compensation,Christmasbonus,DiwaliorPooj abonus,foodcostsubsidy,housingsubsidy, :(a)Hoursofwork.

9 (b)Paidholidays;(c)Shiftpremium;(d)Holid aypayand(e)Paidvacation.(a)HoursofWork:S ection51oftheFactoriesAct,1948, ,thenumberofworkinghoursislessthantheleg alrequirements.(b)PaidHolidays:According totheFactoriesAct,1948,anadultworkershal lhaveaweeklypaidholiday, , ( ) :MAHINDRAPRESENTEDINDIA SFIRSTHOLIDAYPLANM ahindraintroducedIndia ,ClubMahindraVacationOptioninordertomoti vateitsexecutives.(c)ShiftPremium:Compan iesoperatingsecondandthirdshifts, (d)HolidayPay:Generally,organisationsoff erdoublethenormalrateofthesalarytothosew orkers,whoworkonpaidholidays.(e)PaidVaca tion:Workersinmanufacturing, , ,1936,TheMinimumWagesAct, ,1965,providesincomesecuritytotheemploye es.(a)RetrenchmentCompensation:TheIndust rialDisputesAct, snoticeoronemonth swagestoalltheworkerswhoareretrenchedaft eroneyear ( ) :YOUTHINVESTINGFORRETIREMENTLIFEAUS surveyrevealsthat64%ofAmericansaged18to3 4havealreadybeguntosavefortheirretiremen tyears.

10 (b)Lay-offCompensation:Incaseoflay-off,e mployeesareentitledtolay-offcompensation attherateto50% ssafetyandhealthshouldbetakencareofinord ertoprotecttheemployeeagainstaccidents,u nhealthyworkingconditionsandtoprotectwor ker ,theFactoriesAct,1948, ,disposalofwasteandeffluents,ventilation andtemperature,dustandfume,artificialhum idification,over-crowding,lighting,drink ingwater, ,workonornearmachineryinmotionemployment ofyoungpersonsondangerousmachines,striki nggearanddevicesforcuttingoffpower,self- actingmachines,easingofnewmachinery,prob ationofemploymentofwomenandchildrennearc ottonopeners,hoistsandlifts,liftingmachi nes,chains,ropesandliftingtackles,revolv ingmachinery,Introduction17pressureplant ,floors,excessiveweights,protectionofeye s,precautionsagainstdangerousfumes,explo siveorinflammabledust, ,powertorequirespecificationsofdefective partsoftestofstability, sCompensation.