Concept of labour welfare Labor welfare encompasses overall facilities and initiatives aimed at enhancing the well-being of employees and improving their living standards. The primary purpose is to take care of employees and contribute to their overall welfare. The concept of labor welfare is flexible and elastic, meaning it can adapt to different circumstances. It varies based on factors such as time, region, industry, social values, customs, degree of industrialization, and prevailing political ideologies. The level and nature of labor welfare are influenced by the socio-economic development of the population and the general conditions prevalent in a particular time and place. Societal factors, such as age-group, sex, socio-cultural background, marital and economic status, and educational level of workers, also shape labor welfare practices. Labor welfare practices may differ across industries due to variations in working conditions, job types, and industry norms.
History Of Labour Welfare Labor welfare initiatives in India commenced around the time of the First World War (1914-1918), marking a shift in focus towards the wellbeing of factory workers, a concern that was previously overlooked. The Industrial Labour Organization has played a pivotal role in advancing labor welfare efforts. Established by both the Indian central government and state governments, it is dedicated to promoting the welfare of labor in various industries. The government has established minimum standards for employment and working conditions. 3
Objectives Elevating the living standards of the working class is essential to prevent exploitation by capitalists. Standardized welfare measures play a crucial role in safeguarding laborers from such exploitation. Fostering a perception of employee satisfaction and contentment with work and working conditions is a key objective for effective management. Mitigating/Justifying labor issues within the organization involves addressing problems like absenteeism, turnover ratios, indebtedness, and alcoholism, which can weaken laborers physically and psychologically. Labor Welfare endeavors to assist workers in overcoming these challenges. Recognizing and nurturing individual human values is paramount. Management holds the responsibility to shape and facilitate the growth of each person, acknowledging their unique personalities and contributions to the organization. Labor Welfare instills a sense of responsibility within the industry by entrusting individuals with roles and responsibilities. This approach encourages better performance and initiative, preventing employees from becoming mere subordinates without any motivation to showcase their capabilities. 4
Enhancing industrial relations and curbing industrial disputes are achieved through effective Labor Welfare measures. Such initiatives serve as preventive tools to address employee dissatisfaction and conflicts. Implementing fixed policies is crucial to retaining employees. Well-defined policies, training programs, motivational schemes, and job-interest-building initiatives contribute to employee security, reducing the likelihood of them seeking employment elsewhere. Fostering a positive mindset at work involves transforming negative attitudes. Labor Welfare initiatives play a vital role in achieving this transformation. Formation of works committee, trade union and etc 5
Scope of labor welfare Working environment Healthcare facility Nature Welfare 6
Wages "wages" means all remuneration, capable of being expressed in terms of money, which would, if the terms of the contract of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment and includes house rent allowance but does not include ( i ) the value of - (a) any house- accommodation, supply of light, water, medical attendance , or (b) any other amenity or any service excluded by general or special order of the appropriate Government; (ii) any contribution paid by the employer to any Pension Fund or Provident Fund or under any scheme of social insurance ; (iii) any travelling allowance or the value of any traveling concession ; (iv) any sum paid to the person employed to defray/pay special expenses entailed/involved on him by the nature of his employment; or (v) any gratuity payable on discharge ; 7
Minimum Wage The minimum amount of remuneration that employers are legally required to pay their employees for work performed. Designed to protect workers from exploitation and ensure they receive a basic standard of living. Typically set by government authorities, taking into account factors such as the cost of living, inflation, and economic conditions. 8 Fair Wage A wage that is considered just and equitable, taking into account the skills, experience, and contributions of the worker. To compensate workers fairly for their efforts, skills, and time, promoting a sense of justice and fairness in the employment relationship. Skills, education, experience, job responsibilities, and industry standards.
Living Wage: A wage that is sufficient for a worker to meet basic needs such as housing, food, healthcare, and education, ensuring a reasonable standard of living. Goes beyond the minimum wage, aiming to provide workers with the means to live comfortably and participate in the social and economic life of their community. Takes into account the cost of living in a specific geographic area and may vary based on family size and composition. 9 A wage determined by assessing the specific needs of workers and their dependents, ensuring that their basic requirements are met. Addresses the fundamental needs of individuals and families, recognizing that a one-size-fits-all approach may not account for varying living costs and family structures. Housing costs, healthcare expenses, education, and other essential needs are taken into account when calculating the wage. Need-Based Minimum Wage: