THE CONCEPTUAL AND THEORETICAL FRAMEWORK OF LABOUR WELFARE: AN INDIAN PERSPECTIVE BY - SANDEEP KUMARI
“THE CONCEPTUAL AND
THEORETICAL FRAMEWORK OF LABOUR WELFARE: AN INDIAN PERSPECTIVE”
AUTHORED BY - SANDEEP
KUMARI[1]
INTRODUCTION
India's
labour welfare policies have their roots in the pre-independence era, with the
establishment of the Royal Commission on Labour in 1929. Post-independence, the
government has taken several steps to protect workers' rights and promote
labour welfare. The term labour welfare
may include housing, medical, educational facilities, nutrition including various
social measures undertaken voluntarily by employers alone or jointly with
workers, including sickness maternity benefit schemes, provident funds,
gratuities and pensions etc.” The term ‘welfare’ is thus, very flexible as well
as comprehensive.[2]
One of the most important aspects of national initiatives that aim to
improve the lives of those in the labour force by providing them with better
living conditions and working conditions that are more accommodating to their
needs is the provision of welfare for workers. Labour welfare has been defined
in a number of different ways, and as a result, it is recognised in a number of
different ways in different nations. The term “welfare work” can be defined as
“work that goes above and beyond the minimum standards set by the Factories Act
and other labour legislations in order to improve the health and safety,
general well-being, and industrial efficiency of workers.” According to a
report published by the International Labour Organization, “Workers’ welfare
should be understood as meaning such services, facilities, and amenities which
may be established in or in the vicinity of undertaking to enable the persons
employed in them to perform their work in healthy and congenial surroundings
and provided with the amenities that are conducive to good health and high
morale.”[3]
MEANING AND
DEFINITIONS
Labour welfare has been defined by different authors in different ways
but every definition has its own significance.The significance of the term
“welfare” therefore varies from country
to country.[4]
The Oxford dictionary defines
Labour welfareas “efforts to make life worth living for workmen”.[5]
Welfare includes anything that is done for the comfort and improvement of
employees and is provided over and above the wages.
According to N. M. Joshi, the term “labour welfare work” refers to “all
the efforts that employers make for the benefit of their employees above and
beyond the minimum standards of working conditions fixed by the Factories Act
and over and above the social legislations providing against accidents, old
age, unemployment, and sickness”.[6]
According to The Labour Investigation Committee (1944-46), “anything
done for the intellectual, physical, moral, and economic betterment of workers,
whether by employers, by the government, or by other agencies, over and above
what is laid out by law or what is normally expected as part of the contractual
benefits for which workers may have bargained.”[7]
Thus,
the essence and emphasis of definition of labour welfare lay stress on the
improvement to workers? intellectual, social and moral well-being. It can be
derived from the definitions mentioned above that labour welfare aims at
providing better living and working conditions. It should be either a voluntary
effort by the employer or in some cases Government should take the
responsibilities of workers’ welfare or to enforce legal measures to protect
the interest of the workers.
EXTENT OF LABOUR WELFARE
The
word “labour welfare” refers to a concept that is extremely broad, and its
scope is also very broad. It takes into account all efforts made in the form of
amenities and activities, which can change from one location to another, from
one business to another, and from one time period to another. The activities
that fall under the umbrella of “labour welfare” can be broken down into three
main categories:
(1)
Statutory welfare work;
(2)
Non-statutory welfare work; and
(3)
Mutual charity work. The idea of labour
welfare encompasses a wide range of activities, such as those that are
extra-mural and intra-mural, as well as statutory and non-statutory welfare
measures. These activities and measures are carried out by employees, the
government, and trade unions with the intention of assisting workers and their
families within the context of their industrial life.[8]
Statutory welfare measures are those provisions of welfare work that are
dependent on their observance of the coercive power of the government and that
are required to be supplied in order to be in compliance with the laws that are
governing from time to time. On the other hand, all of those activities that
are independently carried out by employers on behalf of their employees are
collectively referred to as non-statutory welfare measures.
Welfare Amenities within the
Precincts of the Establishment (Intra-Mural)
Latrines and urinals, washing and bathing facilities, creches, rest
rooms and canteens, arrangements for drinking water, arrangements for the
prevention of fatigue, health services including occupational safety,
administrative arrangements within a plant to look after welfare, uniforms and
protective clothing, and shift allowances are all examples of the types of
amenities that should be provided. [9]
Maternity benefits, social insurance measures including sports, cultural
activities, library and reading room, holiday homes and leave travel
facilities, workers’ co-operatives including consumers co-operative stores,
fair price shops, and co-operative thrift and credit societies, vocational
training for dependents of workers, other programmes for the welfare of women,
youth, and children, and transportation to and from the place of work or the
place of employment.[10]
The
welfare facilities may further be classified into three basic categories:
The
provision of economic services contributes, in addition to wages and salaries,
to a certain degree of supplementary economic security. Pension plans, life
insurance policies, lending facilities, and other similar services are all
examples of economic services. Some companies also offer a family pension plan,
which states that in the event that an employee passes away, the plan will give
a pension to the employee’s surviving spouse and dependent children.[11]
Additionally,
the business might be responsible for paying the premiums on the employees’
life insurance policies. Loans can be provided to employees by their employers
for the purpose of purchasing consumer products, attending weddings or other
important family events, or for any other reason that the employers deem
appropriate.[12]
The
management might provide the workers with access to various recreational
facilities. Employees’ mental and physical growth can be greatly aided by
providing them with opportunities to participate in recreational activities
such as music, athletics, games, art, and theatre.[13]Reading
areas, libraries, televisions, and other forms of entertainment can be made
available to staff members by management. There is the potential for the
inclusion of indoor activities such as table tennis, carrom, and others. Large
organisations are able to make preparations for outdoor games and can encourage
their employees to form teams that compete in competitions against other teams
with comparable compositions.[14]
These
are facilities which are generally required by employees and provided by
employers to facilitate the employees i.e. housing facilities, medical facilities, transportation facilities and
consumer cooperative stores etc.
OBJECTIVES OF LABOUR WELFARE
The
overall personal growth of employees is the target of the labour welfare
movement, which is motivated by humanitarian concerns. The protection of
employees from being exploited to an unacceptable degree should be a primary
focus of labour welfare. These kinds of measures also make the industrial
interactions within the sector better.[15]
Some of those goals are listed below :
a) To
provides social comfort to personnel.
b) To
encourage the all-round development of staff members.
c) To
provide indirect financial assistance to the staff members of the company.
d) To
make a positive contribution towards the growth of a feeling of responsibility
and belonging in the workforce.
e) To
make the working conditions of the employees at the location of employment
better.
f) To
preserve and keep the personnel that is already in place.
g) To
lower the percentage of workers who are missing from their jobs and the number
of workers who switch jobs.
h) To
make the lives of workers more comfortable and to ensure their happiness.
i)
To encourage greater levels of productivity
and effectiveness among workers in the workplace.
j)
To ensure that working circumstances are safe
and conducive to good health.
k) To
guarantee that workers, their families, and society as a whole are all helped
to improve.
THEORIES OF LABOUR WELFARE
The
conception of welfare has developed over time, which is mirrored in the various
theories regarding worker welfare. The idea of assistance has developed into
something quite different over the course of time. In this regard, an overview
of the different approaches to employee welfare has been provided below, along
with a brief description of each of these approaches.[16]
This theory is predicated on the concept
that man has affection for his fellow man. Philo is translated as “love
of,” and Anthropos is the Greek word for “man.” Therefore, philanthropy
refers to a love for humankind. Man is believed to have an instinctive urge by
which he endeavours to remove the sufferings of others and support their
well-being. When some business owners feel compassion for their fellow humans,
it is possible that they will implement employee well-being programmes for the
advantage of their workforce.
The Religious Theory
The
religious theory asserts that man is, at heart, “a religious animal,” and that
this tenet serves as the foundation for the theory. These deeply held religious
convictions can, on occasion, move an employer to engage in charitable work in
the hope of reaping some kind of reward in here and now or in an afterlife. In
this particular instance, the one who does the good deed and the recipient of
it both stand to benefit.[17]
The
theory of policing is predicated on the idea that workers require some level of
basic wellbeing in order to function effectively in their jobs. This theory
seems to be based on the assumption that people are inherently self-absorbed
and egotistical, and that they will never stop working towards their own goals,
no matter what the consequences may be for others. This kind of exploitation
needs to be prevented by the welfare state, and the industrialists need to be
forced to provide their employees with some level of assistance at a bare
minimum.[18]
This
theory provides the foundation for an environment of goodwill between labour
and management, as well as between management and the general public. According
to this line of thinking, labour assistance programmes function as a form of
advertising and assist industrialists in developing positive and constructive
relationships with the public.[19]
This
theory is also known as the Efficiency Theory in some circles. In this context,
charity work is utilized as a strategy for securing, preserving, and further
developing the efficiency and productivity of labour. It stands to reason that
if an employer takes excellent care of his employees, those employees will tend
to become more productive and, as a result, the company’s output will increase.[20]
This
theory is also known as the paternalistic theory of labour welfare. Under this
theory “the industrialist or employer holds the total industrial estate,
properties, and profits.” Workers are like children. They have not received an
adequate education, which has left them illiterate and unable to look out for
their own best interests. Here employer uses his properties as well as the
earnings for his own benefit as well as the benefit of his employees and of
society as a whole as a responsibility based on the trust of his workers.[21]
This theory is predicated on the observation
that labour organisations are becoming more revolutionary and are more aware of
their rights and advantages than at any other time in history. Their desire for
higher wages and higher standards is something that simply cannot be ignored.
According to this theory, attempting to appease the employees through timely
and periodic acts of labour welfare can be successful. Despite the fact that it
is not supported by sound psychological research, this theory is frequently put
into practice in order to gain the cooperation of employees.[22]
The idea behind the principle of social
responsibility is that businesses have an obligation to their workers to look
out for their well-being. This idea is supported by the Constitution of India,
which includes the principle as one of the governing principles underlying
state policy.[23]
Principle of Adequacy of
Wages
This Principle acknowledges that Workers
have the right to adequate wages. The principle of adequate wages states that
labour welfare measures cannot be a substitute for wages and that workers have
the right to adequate wages. If social welfare, emotional welfare, and economic
welfare were all addressed at the same time, one might anticipate favourable
outcomes.[24]
The
Principles of Efficiency play a significant part in welfare services and are
predicated on the connection that exists between efficiency and welfare,
despite the fact that it can be challenging to quantify the nature of this
connection. Whether or not one accepts the social responsibility of industry,
the employer quite often accepts the responsibility for increasing such labour
policies that would increase efficiency.[25]
The
Principle of Totality of Welfare states that the idea of worker welfare should
permeate all levels of an organisation’s management structure, and workers at
every level should agree with this comprehensive view of worker welfare before
the policy can be put into effect.[26]
Principle of Re-personalization
The
development of human personality is determined to be the goal of industrial
welfare, and this principle should counteract the harmful effects of the
industrial system. The principle of re-personalization was developed to reflect
this goal. As a result, it is essential to establish worker support services
both within and beyond the confines of the manufacturing facility.[27]
A
concept of a coordinated approach that will support a healthy development of
the worker in his work, at home, and in the community is referred to as the
principle of coordination. This is absolutely necessary in order to maintain
peace and consistency within the labour assistance services.[28]
Principle
of Democratic Values
The
co-operation of workers is the foundation of the democratic values principle,
and as a result, the consultation and agreement of workers in the creation and
delivery of labour welfare services are absolutely essential for those services
to be successful. Industrial democracy is the driving force behind this
principle, and workers develop a sense of pride when they are made to feel that
labour welfare initiatives are created by them and for them. This principle is
founded on the assumption that the worker is an individual who is mature and
rational.[29]
This Principle acknowledges the fact that
both employees and employers share the responsibility for the health and safety
of the workplace. In a constructive way, labour unions are also participating
in these programs, when different organisations being responsible for labour
welfare work, then the work itself becomes simpler and less difficult. As a
direct result of this, numbers of Committees are either elected or appointed and
various authorities and responsibilities pertaining to the welfare sector are
given to them.[30]
The
Principle of assessment, or principle of accountability, is another name for
this concept. In this scenario, one responsible individual report their
findings to a higher authority on a regular basis in the form of an assessment
or evaluation of the existing welfare services. The success of worker
assistance programmes will be evaluated by a single individual according to
this criterion. [31]
Principle of Timeliness
According to this Principle the
timely delivery of any service is one factor that contributes to that service’s
overall performance. In order to successfully plan labour welfare programs, it
is essential to first identify the employment issue at hand, then figure out
what kind of assistance is required to resolve the issue, and finally determine
when this assistance should be provided.[32]
Principle of Self Help
The
Principle of self-help states that the goal of worker welfare programmes should
be to assist employees in becoming self-sufficient over the course of their
careers. Because of this, they are able to develop greater responsibility and
become more effective.[33]
PROBLEMS OF LABOUR IN INDIA
It is needless to say that there are many
problems of labour in India pertaining to labour-employer relations.[34]Some of the problems are: -
The
majority of workers in this country cannot read or write, making it one of the
countries with the lowest proportion of educated workers in comparison to other
nations. As a consequence of this, they are unable to receive advanced
industrial training, and comprehend the challenges faced by industries, both in
terms of their own interests and the interests of the country as a whole, or
both. This has the potential to be detrimental not only to the employees but
also to the nation as a whole.[35]
Our
nation has a relatively high percentage of its population living below the
international poverty level in comparison to other nations. Therefore, there is
a significant decline in the standard of living. An Indian worker is unable to
provide his family with a healthy living standard, and if the worker is a
woman, she is not offered assistance in the event that she requires it. As a
result, the well-being of the workforce has a significant impact on the nation.
It is required to provide assistance to them in the form of retirement
benefits, maternity benefits, provident funds, annuities, and gratuities, among
other things.[36]
Taking
the figures into consideration, the labour union movement is still in its
formative years. Even if a labour union does exist, there is no enough
enlightened leadership, and the organisations that do exist are not united with
one another. In the absence of a labour union that is properly organized, the
employees are unable to make their requests heard by the employer in an
effective manner, and they are also unable to think clearly and methodically
about their own best interests.[37]
When
compared with their counterparts in the majority of European countries, Indian
workers suffer from poor health and a higher incidence of disease. This
demonstrates that there is an undeniable influence on the manufacturing
potential. As a result, he is in dire need of reasonably priced food that is
high in nutrients and a decent facility in case he needs to be hospitalized.[38]
The
average Indian labourer is more restless than workers in other countries, and
he or she is more likely to engage in frequent migration as a result of this.
This is due to the fact that living in the city does not cater to the worker’s
needs, and the environment in general does not agree with the worker. In
addition, the labourer is unable to comfortably settle down in one location
because the level of earnings is insufficient. Absenteeism is another potential
consequence that could result from this. This worker’s propensity to migrate
can be reduced if sufficient facilities and conditions are made available to
him, which has the added benefit of having a positive impact on absenteeism in
the manufacturing facility.[39]
Recreation
that is good for you is another one of our nation’s top priorities because the
use of people’s time and energy in unproductive ways is one of the main factors
contributing to the decline in employment productivity. As a result, it is
absolutely necessary to make provisions for healthful forms of recreation and
enjoyment.[40]
It
is essential to have training facilities available for such a large labour
population in India because the percentage of workers who have received formal
education is very low. Because of these issues with the employment market in
India, the country’s various labour laws will need to be updated to include
provisions for worker welfare if it is going to be able to take action to
address these labour market issues.[41]
KEY LABOUR WELFARE
LAWS AND POLICIES
The Factories Act, 1948:
This
Act regulates working conditions, hours of work, and health and safety
standards in factories.
The Minimum Wages Act, 1948:
This
Act ensures payment of minimum wages to workers for their work.
The Employees' Provident Funds and
Miscellaneous Provisions Act, 1952:
This
Act provides for retirement benefits, pension, and insurance to employees.
The Employees' State Insurance Act, 1948
This
Act offers health insurance and medical benefits to employees.
The Maternity Benefit Act, 1961:
This
Act provides maternity benefits to women employees.
Therefore,
for the welfare of the workers many schemes are formed by the Government, some
of which are mentioned hereunder:
Rashtriya Swasthya Bima Yojana (RSBY): A
health insurance scheme for workers in the unorganized sector.
Atal Pension Yojana (APY): A
pension scheme for workers in the unorganized sector.
Pradhan Mantri Shram Yogi Maandhan
(PM-SYM): A pension scheme for workers in the unorganized sector.
National Career Service (NCS): A
portal providing employment services, career counseling, and vocational
guidance.
PAYBACKS OF LABOUR WELFARE MEASURES
Workers
experience growth in all aspects depends when labour support activities are
provided for them. The following advantages accrue to both the workforce and
society as a whole as a result of the implementation of these measures in
particular:[42]
These
measures not only bring a high level of satisfaction to the workforce but also
contribute to the preservation of harmony in the workplace. Conflicts,
disorder, unrest etc. are minimised. A sense of belonging to the organisation can
be cultivated in its members.[43]
Increase in General Efficiency and
Income
Workers
who have access to welfare facilities report feeling happier and more fulfilled
in both their personal lives and in the workplace, leading to an increase in
their overall productivity. If they are not relieved of the domestic concerns
that they have, such as poor housing or unsanitary circumstances, then it is
possible that their efficiency and productivity will not be up to the standard.
When they are finally freed from these concerns, they go to work with all of
their vigour and excitement.[44]
The
measures taken to improve employees’ welfare will also make it easier to gain
the workers’ willing cooperation. When their needs are met, they will have less
of a desire to engage in anti-social and detrimental behaviors. As a result, a
high level of morale among the workforce is guaranteed.[45]
Creation of Permanent Labour
Force
The
presence of these facilities will serve as an incentive for the workers to
remain at the undertaking for an extended period of time. Because there are no
facilities of this kind available, the employees frequently return to their
hometowns in order to find opportunities for recreation and the like. Effective
workers have the option to look for better opportunities and may even transfer
to working at other establishments. These kinds of institutions are absolutely
necessary in order to establish a stable labour force.[46]
Improvement in Mental and Moral Health
The
employees experience a dramatic shift in their perspective as a result of these
facilities, which also improves their mental capacity and assists them in
developing into responsible citizens. They are doomed to give in to a variety
of societal ills, such as drinking, gambling, and others, if they do not have
access to facilities of this kind.[47]
The
perspective of the employers will shift as a result of a shift in the mentality
and mindset of the workforce, as well as the wholehearted cooperation of workers
in the workforce. They will feel more compassion and understanding towards
them. They won’t even bat an eye when it comes to dividing up the rewards of
their efforts with the people who helped them get there.[48]
Social
Benefits
In
addition to a number of monetary benefits for both employers and workers, the
implementation of these policies also results in a number of positive societal
outcomes. An increase in the workers’ efficiency eventually leads to an
increase in the undertakings’ production as well as their productivity and
earnings. The higher earnings also lead to higher wages, which in turn make
employees happier and give them the opportunity to live “a richer and fuller
life.” At long last, there has been an improvement in the standard of living throughout
the community.[49]
To Combat Trade Union
It
is useful in preventing employees from joining trade unions and gaining the
loyalty of their workforce.[50]
CHALLENGES AND FUTURE DIRECTIONS
Informalization of Labour
The increasing trend of
informal employment poses challenges for labour welfare policies.
Digitalization and Automation
The impact of digitalization
and automation on jobs and workers' rights requires attention.
Migrant Workers
The welfare of migrant
workers, who often face exploitation and poor working conditions, needs to be
addressed.
Social Security
Expanding social security
coverage to all workers, including those in the informal sector is essential.
CONCLUSION
In
conclusion we can say that India's labour welfare policies and laws aim to
protect workers' rights and promote their well-being. However, challenges
persist, and future directions must address the changing nature of work,
informalization, and digitalization.The labour welfare measures are essential
for both employers and employees, as they bring numerous benefits to the
workplace as well as society as a whole. This is why they are so important.
Labour welfare measures contribute to the creation of a healthier and more
productive workforce, as well as an improvement in the general efficiency and
income, as well as the creation of a permanent labour force. Additionally,
these measures help improve the general standard of living for the community as
a whole.
In
order to ensure that the requirements for worker welfare are carried out in an
appropriate manner, the guiding principles and theoretical frameworks for
worker welfare should be adhered to. In general, these principles provide a
comprehensive foundation for the implementation of successful labour welfare measures.
As of the varying circumstances that exist from industry to industry and even
from unit to unit within the same industry, the standards and scope of welfare
work that is performed by employers can take on a variety of forms. With
complete sincerity, the provisions that are included in the different pieces of
legislation for the protection of the employees ought to be put into action.
This, in turn, results in improved labour relations, higher levels of
productivity, and a general improvement in the workers’ quality of life. This
objective will be accomplished only when the organizations responsible for its
enforcement maintain a steady watch and make consistent efforts for it.
[1] Assistant Professor at HIMCAPES College
of Law, Badhera, Una (HP)
[2] Supra note 1 at 55.
[3] T.N. Bagoliwal, Economices of Labour and Industrial Relations 53 (Sahitya Bhawan,
Agra, 5thEdn., 1982).
[4] K.N. Vaid, Labour Welfare in India 13 (Shri Ram Centre for
Industrial Relation, New Delhi, 1970).
[5] Ibid.
[6] C.B. Mamoria, & S.L Doshi, Labour
Problems and Social Welfare in India 311 (Kitab Mahal Private Limited,
Allahabad).
[8] Labour Welfare: it’s Scope and Importance
article by Samriti Chand, available at:http://www.yourarticlelibrary.com/management/labour-welfare-its-scope-and-importance
(last visited on January 20, 2019).
[9] J.N. Mongia, Indian Labour and Social
Welfare 319 (Atma Ram and Sons, Delhi, 2nd edn., 1980).
[11] Labour Welfare by Mayuri K. available
at: http:// www.economicsdiscussion.net/labour/labour-
welfare/31839 (last visited on January 24, 2020).
[15] Labour Welfare by Mayuri K. available at:
http:// www.economicsdiscussion.net/labour/labour-
welfare/31839 (last visited on January 24, 2020).
[16] Randhir
Kumar Singh, “Labour Welfare in Indian Perspective” 5 Journal of Emerging
Technologies and Innovative Research (JETIR) 610, (2018).
[24] Labour Welfare In Indian Perspective, available
at: https://newhorizonindia.edu/nhc_kasturinagar/
wp-content/uploads/2017/10/Labour-Welfare-in-Indian-Perspective.pdf
(last visited on June 15, 2019).
[34] V.V. Giri, Labour Problems in the Indian Industry, 67 (London: Asia Publishing House, 2ndedn., 1960).
[35] Ibid.
[42] Major Benefits of Labour Welfare –
Explained, available at: http://www.yourarticlelibrary.com/
management/7-major-benefits-of-labour-welfare-explained/26111 (last visited
on January 20, 2019).