Students Report

Ananya SHARMA

B.B.A.

[Instructor Name]

[Date]
Declaration
Acknowledgment
Executive Summary
Index
 Chapter 1

Company Profile
Hindustan Construction Company Limited
Hindustan Construction Company Limited or HCC Limited is a public-private company
headquartered in Mumbai, India whose businesses span the sectors of Engineering &
Construction, Real Estate, Infrastructure, Urban development & Management. The HCC
group of companies comprises HCC Ltd., and its subsidiaries HCC Real Estate Ltd, HCC
Infrastructure Co. Ltd, Lavasa Corporation Ltd, Steiner AG in Switzerland and Highbar
Technologies Ltd.

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Founded by Industrialist Seth Walchand Hirachand in 1926, HCC Ltd. executes large-scale
civil engineering and infrastructure projects such as hydel power plants, nuclear power plants,
expressways and highways, tunnels and bridges. HCC currently serves the infrastructure
sectors of transportation, power and water. HCC was the first construction company in India
to be certified for ISO 9001, ISO 14001 and OHSAS 18001 for its quality, environmental and
occupational health and safety management systems. The company is headed by Ajit
Gulabchand, Chairman & Managing Director (CMD) and Arjun Dhawan who is the Group
Chief Executive Officer (Group CEO).

TYPE Public-private Company

TRADED AS BSE: 500185
NSE: HCC
FOUNDED 27 January, 1926
HEADQUATERS Hincon House, west-Mumbai, India
KEY PEOPLE Ajit Gulabchand (chairman & MD)

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 Arjun Dhawan (CEO)
Shailesh Sawa (CFO)
Ajay Singh (Company Secretary)
REVENUE Rs.81.50 billion (US$1.2 billion) (2012-13)
WEBSITE www.hccindia.com

HCC is also developing Lavasa, a planned hill city set in the Sahayadri Mountains. Lavasa is
spread amidst 23,000 acres and located at a 3-hour drive from Mumbai and an hour’s drive
from Pune. The master plan for Lavasa has been developed by the design consultant HOK
International Limited, USA. Lavasa is slated to have 5 towns - Dasve, Mugaon, Dhamanohol,
Sakhari-Wadavali and the Central Business District (CBD). The city is planned for a
permanent population of 3 lakh residents. The integrated development at Lavasa city
comprises apartments, retail, hotels, an international convention centre, education,
information technology, biotech parks, sports and recreation facilities spread across its 5
towns.

Lavasa Housing corporation

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Famous Projects by HCC

Some leading projects executed by HCC include:

 Kishanganga Hydro Electric Power Project

 Bandra-Worli Sea Link, Mumbai

 Delhi Faridabad Skyway

 Bogibeel Bridge, Assam

 Delhi Metro Project: Packages MC1A, AMEL C1, AMEL C6, CC30, CC34, CC66

 Ennore Breakwaters, Tamil Nadu

 Farakka Barrage

 Godavari Arch Bridge, Andhra Pradesh

 Idukki Dam, Idukki in Kerala

 Kolkata Metro

 Kudankulam Nuclear Power Plant,

 Lavasa City, near Pune

 Mughal Road Project, J&K

 Mumbai Pune Expressway

 Nathpa Jhakri Hydroelectric Project: Head Race Tunnel and Surge Shaft

 Nimoo Bazgo Hydel Power Project, J&K

 Pir Panjal Rail Tunnel, J&K

 Rajasthan Atomic Power Plant, Rajasthan

 Aditya Aluminium Project, Sambalpur, ODISHA

 West Bengal Highway Project [NH-34]

 Parama Island Flyover, Kolkata

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Bandra-Worli Sea Link, Mumbai

The Bandra–Worli Sea Link (officially known as Rajiv Gandhi Sea Link is a cable-stayed
bridge with pre-stressed concrete-steel viaducts on either side that links Bandra in the
Western Suburbs of Mumbai with Worli in South Mumbai. The bridge is a part of the
proposed Western Freeway that will link the Western Suburbs to Nariman Point in Mumbai's
main business district.

The ₹19.75 billion (US$290 million) bridge was commissioned by the Maharashtra State
Road Development Corporation (MSRDC), and built by the Hindustan Construction
Company. The first four of the eight lanes of the bridge were opened to the public on 30 June
2009. All eight lanes were opened on 24 March 2010.

The sea-link reduces travel time between Bandra and Worli during peak hours from 20–30
minutes to 10 minutes. As of October 2009, BWSL had an average daily traffic of around

37,500 vehicles.

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Delhi-Faridabad Skyway

Delhi Faridabad Skyway (D F Skyway) is a 4.4 km six-lane elevated highway that connects
Delhi with Faridabad, a prominent city in National Capital Region. It was inaugurated on
November 29, 2010. The project was undertaken by concessionaire "Badarpur Faridabad
Tollway Limited", a subsidiary of Hindustan Construction Company Limited. The skyway
begins at Badarpur, Delhi and ends at sector 37, Faridabad.

It is part of National Highway 2 (NH-2).

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Bogibeel bridge

Bogibeel bridge is a combined road and rail bridge over the Brahmaputra river in the north
eastern Indian state of Assam between Dhemaji district and Dibrugarh district, which was
started in the year 2002 and took a total of 200 months to complete, heavy rainfall in the
region being the main cause for the slow progress. Bogibeel river bridge is the longest rail-
cum-road bridge in India measuring 4.94 kilometres over the Brahmaputra river. As it is
situated in an earthquake-prone area it is India's first bridge to have fully welded steel-
concrete support beams that can withstand earthquakes of magnitudes up to 7 on the Richter
Scale. It is Asia’s 2nd longest rail-cum-road bridge and has a serviceable period of around
120 years. It is the 5th longest bridge in India after Bhupen Hazarika Setu, Dibang River
Bridge, Mahatma Gandhi Setu and Bandra-Worli Sea Link. The bridge was constructed by a
consortium of construction companies headed by Hindustan Construction Company. The
bridge has a double rail line on the lower deck and a 3 lane road on the upper deck.

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In April 2008, the Northeast Frontier Railway contracted Gammon India to construct the sub-
structure of the bridge while a consortium of Hindustan Construction Company, DSD
Brückenbau GmbH, Germany and VNR Infrastructures won the bid to build the
superstructure.

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HCC Stocks

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Sustainability
HCC's commitment to 'Responsible Infrastructure' has stood the test of time, with social
commitment and environmental responsibility being an integral business goal.

It go beyond business, fulfilling it’s duty as a responsible corporate citizen. The Company
consistently work towards improving the quality of life of the communities it serve, be it our
organisation, the industry as a whole, or society at large.

Since HCC execute some of the largest and most challenging projects in the country,
comapny take it upon themselves to adopt sustainable practices that serve the well-being of
the community - both in the immediate vicinity of its work operations and also beyond.

Focus Areas

 Sustainability Reporting : Every year HCC submits a report titled'

Responsible Infrastructure' that reflects the continued progress HCC has made
towards fulfilling its sustainability goals of achieving water neutrality, minimizing
construction waste, zero-reportable injuries for employee health and safety, and
promoting the development of the communities the company operates in. HCC has
published nine Substainability Reports till date and working on tenth, which is being
prepared as per GRI Standards. The Reports has undergone limited assurance as per
AA 1000 AS Standard by independent assurors.

 Water : HCC understands the importance of Water conservation and hence

endeavours for effective adoption of the 4 R’s (Reduce, Reuse, Recycle and
Replenish) at all the project. HCC is the first Asian company to endorse the United
Nations’ Global Compact (UNGC)’s CEO Water Mandate and it executes a range of
interventions to reduce, recycle, reuse and recharge water. HCC’s initiatives towards
achieving water neutrality was featured amongst ten global company case studies in a
Climate Report issued by the UNGC and United Nations’ Environment Programme at
the Rio+20 conferences organised by the United Nations at Brazil in June 2012. HCC
has achieved Water positive status in 2015, by way of offsetting

 Disaster Relief : As the founder member of the Disaster Resource Partnership

(DRP) formed at the World Economic Forum in 2004, HCC ensures that the core

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 strengths and existing capacities of the Infrastructure and Urban Development
community are mobilized during and after crisis to reduce suffering and save lives.

 HIV/AIDS awareness: HCC's HIV/AIDS awareness programme aims to sustain

optimal workplace productivity by conducting prevention, education and awareness
training and reduce the spread of new infections. HCC formulated the HIV/AIDS
Workplace Policy and adopted a Workplace Intervention Programme (WPI) that
focuses on prevention programmes and zero tolerance of stigma and discrimination at
the workplace. HCC undertake HIV/AIDS awareness programmes under categories
of:

a) Education for our employees, migrant workers and communities

b) Education and Awareness in communities for wider impact

 Community initiatives : HCC has traditionally been contributing to

communities in and around its project sites, with an objective of improving their
quality of life. In order to ensure the sustainability and effectiveness of the community
programs, we actively involve communities and initiate programs that have a positive
effect on their lives. It is a process based on empowering communities with skills,
knowledge and experiences which can help them to choose a programme that best
suits their benefit, enabling them to fully participate in a truly democratic way.

 Education : Mr. Ajit Gulabchand, CMD, HCC has taken the lead in ideating new
concepts for investment in technical education and skills enhancement. This as an
objective is achieved through training and technical institutions in the country such as
NICMAR in Pune and Walchand College of Engineering in Sangli. Mr. Gulabchand
has also fostered Christel House to offer quality education to the underprivileged kids
of the villages in and around Lavasa city, ensuring they become capable individuals
and responsible citizens.

Safety
HCC endeavours to achieve “ZERO reportable injuries” at each site.

At HCC, paramount importance is given to safety at every juncture, every step of the way.
The company advocates efforts to achieve 'ZERO reportable injuries' at each work front.

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The company has undertaken several initiatives over the years to improve safety
performance, including mandatory induction and training programmes, tool box talks,
demonstration of usages of personal protective equipment etc.

Besides these initiatives, HCC has undertaken the Proactive Safety Observation
Programme (PSOP) which has brought about a paradigm shift in the way safety is observed
at all project sites. The PSOP programme analyses the causes of possible accidents, near-
misses, unsafe conditions & unsafe acts. Each of these causes is systematically reported and
pre-emptive actions are taken to mitigate the chances of an accident.

Going one step further, the company has added a new dimension to its safety programme by
introducing the Behaviour-based Safety Programme. Behaviour-based Safety (BBS)
emphasizes that employees need to take ownership of their own behaviour. If they behave in
an unsafe manner, they are repeatedly made to correct themselves. Both safe and unsafe
behaviours are recorded and displayed as learning opportunities. BBS emphasises that unsafe
conditions are created by unsafe behaviours.

The purpose of BBS is to identify both safe and at-risk behaviours, identify possibilities for
injury, communicate the risk and help identify safer solutions. A BBS steering committee
monitors its progress. The feedback process reinforces the use of safe behaviours and helps
us determine why certain at-risk behaviours were carried out. Collecting information about
at-risk behaviour helps management determine the root cause of such behaviour and helps in
developing an action plan to remove the mental barrier causing this behaviour.

Awards & Recognition

Here is a timeline of all the Awards presented to HCC, yearwise :

2019
 'ACCE(I) Sarvamangala Award 2019' to Bogibeel Rail cum
Road Project for Excellence in construction in the field of Engineering

 'Suraksha Puraskar Award' by National Safety Council' to Rajasthan Atomic

Power Project - Unit 7 & 8

 'Rail Analysis India Awards 2019' to HCC Ltd as Winner of the "Achievement
of Tunnelling" award
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  'Corporate BBS Award' to HCC Ltd as 1st Runner up in the Construction
Category under Forum of Behavioural Safety

 'Ministry of Road Transport and Highways (MoRTH) - Gold

Award' to Baharampore Farakka Highways Ltd (Shibpur Toll
Plaza) for Excellence in Toll Plaza Management

 'Ministry of Road Transport and Highways (MoRTH) - Champions

Award' to Baharampore Farakka Highways Ltd (Chandermore Toll
Plaza) for Excellence in Toll Plaza Management

 'Ministry of Road Transport and Highways (MoRTH) - Champions

Award' to Farakka Raiganj Highways Ltd (Laxmipur Toll
Plaza) for Excellence in Toll Plaza Management

2018
 'HSE Excellence Award 2018' to HCC as Winner of the HSE Excellence
Construction Sector of the year

 'Construction Times Award' to Kishanganga Hydro Power Project for Best

Executed Hydro Power Project of the year

 'Dun & Bradstreet - Winner of Infra Awards 2018' to Kishanganga Hydro

Power Project under Power category

2017
 'EPC World Awards 2017' to Sainj Hydro Power Project for Outstanding
Contribution in Power Generation

 'Dun & Bradstreet - Winner of Infra Awards 2017' to Sainj Hydro Power
Project under Power Category

 'Construction Times Award' to Sainj Hydro Power Project for Best Executed
Hydro Power Project of the year

2016
 'Construction Times Award' to Pir Panjal Rail Tunnel under the category "Best
Executed Rail Tunnel Project"

 'CIDC Vishwakarma Award 2016' to Dagachhu Hydroelectric Power

Project under Power category "Best Construction Project"

 'CIDC Vishwakarma Award 2016' to Padur Cavern Project under

Infrastructure category "Best Construction Project"

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  'CIDC Vishwakarma Award 2016' to HCC's Water Sustainability initiatives
under the category "Achievement Award for Social Development & Impact”

2015
 ‘CIDC Vishwakarma Award 2015' to Mughal Road Project under the category
'Achievement Award for Best Construction Projects in Roads and Highways'

 'Infrastructure Company of the Year Award' to HCC by Construction Week for

its outstanding contribution in the Infrastructure sector

 ‘Construction Week Award’ for HCC’s Dagachhu Hydroelectric Power

Project in Bhutan under the category “Water Project of the Year Award”

2014
 'CIDC Vishwakarma Award' to Pir Panjal Tunnel Project for best construction
projects under the railways category

 'Global Sustainability Leadership Award'' to HCC for Best Community Action'

for its community development project - 'Ujjivana'

 'Road & Highway Project of the Year Award 2014' to Mughal Road Project by
the global editorial team of Construction Week India

 'Water Project of the Year Award 2014' to Maroshi - Ruparel College Water
Tunnel Project by the global editorial team of Construction Week India

2013
 ‘CIDC Vishwakarma Achievement Award’ to Nimoo Bazgo Hydroelectric
Power Plant for 'Best Project'

 Award for Social Investment Strategy to HCC by World CSR Congress

 Civic Award for 'Social Development' to HCC from Bombay Chamber of

Commerce and Industry

2012
 ‘CIDC Vishwakarma Award’ to Kudankulam Nuclear Power Plant for 'Best
Project'

 ‘CIDC Vishwakarma Award’ to Chutak Hydel Power Project for 'Best Project'

 'Power Project of the Year' Award to Chutak Hydel Power Project from
Construction Week

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  Axis Bank Infra Award 2012 to Chutak Hydel Power Project from Dun &
Bradstreet for Best Project under category 'Power Plants'

2011
 Infrastructure Excellence Award to Delhi Faridabad Elevated Expressway
Project by CNBC TV18

 ‘CIDC Vishwakarma Award’ to Delhi Faridabad Elevated Expressway

Project for 'Best Project'

 'Roads and Highways Project of the year Award’ to Delhi Faridabad Elevated
Expressway Project by Construction Week

 ‘ICI – MC – Bauchemie Award’ to Delhi Faridabad Elevated Expressway

Project for most outstanding concrete structure of the year

2009
 'Infrastructure Leader of the Year' award to Mr. Ajit Gulabchand, CMD –
HCC by CNBC TV18

2008
 'National Award for Most Outstanding Bridge' to Bandra Worli Sea Link
Project by Indian Institution of Bridge Engineers (IIBE)

 'Golden Peacock Innovation Award' to Kudankulam Nuclear Power Project

 'Best Concrete Structure Award' to Gosikhurd Spillway Project by Indian

Concrete Institute

2007
 Golden Peacock Award to HCC for Excellence in Corporate Governance

 Golden Peacock Award to Kudankulam Nuclear Power Project

2006
 Golden Peacock National Quality Award to HCC

 International Star Award for Quality to HCC by BID,

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HCC Subsidiaries

Steiner AG is Switzerland's second largest total services contractor. HCC took a

controlling stake in this company in May 2010. With a heritage of nearly 100 years, the
company specializes in turnkey development of new buildings and refurbishments, and offers
services in all facets of real estate development and construction. The company has started its
India operations through a subsidiary - Steiner India Ltd

HCC Infrastructure Co Ltd is a leading infrastructure developer engaged in the

creation and management of premium assets in the areas of transportation. HCC
Infrastructure has developed and operated Rs.5,450 crore (US$ 838 million) of NHAI
Concessions

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 Chapter 2

Employee welfare

Page 17
 Employee Welfare

INTRODUCTION
Employee Welfare is an important facet of industrial relations, the extra dimension,
giving satisfaction to the worker in a way which evens a good wage cannot. With the growth
of industrialization and mechanization, it has acquired added importance. The workers in
industry cannot cope with the pace of modern life with minimum sustenance amenities. He
needs an added stimulus to keep body and soul together. Employers have also realized the
importance of their role in providing these extra amenities. And yet, they are not always able
to fulfill workers demands however reasonable they might be. They are primarily concerned
with the viability of the enterprise. Employee welfare, though it has been proved to contribute
to efficiency in production, is expensive. Each employer depending on his priorities gives
varying degrees of importance to labour welfare.

It is because the government is not sure that all employers are progressive minded and
will provide basic welfare measures that it introduces statutory legislation from time to time
to bring about some measures of uniformity in the basic amenities available to industrial
workers.

After employees have been hired, trained and remunerated, they need to be retained
and maintained to serve the organization better. Welfare facilities are designed to take care of
the wellbeing of the employees, they do not generally result in any monetary benefit to the
employees. No rare these facilities provided by employers alone. Governmental and non-
governmental agencies and trade unions too, contribute towards employee welfare.

Employee welfare is a comprehensive term including various services, benefits and

facilities offered to employees by the employer. Through such generous fringe benefits the
employer makes the life worth living for employees. The welfare amenities are extended in
addition to normal wages and other economic rewards available to employees as per the legal
provisions. Welfare measures may also be provided by the government, trade unions and non-
government agencies in addition to the employer. The basic purpose of employee welfare is
to enrich the life of the employees and keep them happy and contended.

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 Employee welfare today has become a very controversial topic. It covers a very broad
field. To being with, let us briefly discuss the main concepts or, rather, the general, meaning
full ideas which have been evolved about it so far.

The term welfare suggest many ideas, meanings and connotations, such as the state of
well-belling, health, happiness, prosperity and the development of human resources. The
concept of welfare can be approached from various angles. Welfare has been described as a
total concept. It is a desirable state of existence involving for certain components of welfare,
such a health, food, clothing, and housing, medical assistance, insurance, education,
recreation. Job security, and so on.

The word employee means any productivity activity. In a broader sense, therefore, the
phrase employee welfare means the adoption of measures to promote the physical, social,
psychological and general well being of the working population. Welfare work in any
industry aims, or should aim, at improving the working and living conditions of workers and
their families.

The concept of employee welfare originates in the desire for a humanitarian approach
to the sufferings of the working class. Later, it becomes a utilitarian philosophy which
worked as a motivating force for labor and for those who were interested in it.

Employee welfare has been defined in various ways, though unfortunately no single
definition has found universal acceptance.

“Efforts to make life worth living for worker”

“The oxford dictionary”

Concept of Employee welfare

The concept of labour welfare is flexible and elastic and differs widely with time,
region, industry, social values and customs, degree of industrialization, the general
socioeconomic development of the people and the political ideologies prevailing at a
particular time . It is also molded according to the age-groups, socio-cultural background,
marital and economic status and educational level of the workers in various industries In its

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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 which is applicable in the plant.
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. Labour welfare is an
extension of the term Welfare and its application to labour. During the industrialization
process, the stress on labour productivity increased; and brought about changes in the
thinking on labour welfare.

In its broad connotation, the term welfare refers to a state of living of an individual or
group in desirable relationship with total environment – ecological, economic, and social.
Concept dually 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. Pigou defined it as “that part
of general welfare which can be brought directly or indirectly into relations with the
measuring rod of money” (Pigou, 1962). According to Willensky and Labeaux, social welfare
alludes to “those formally organized and socially sponsored institutions, agencies and
programmes which function to maintain or improve the economic conditions, health or
interpersonal competence of some parts or all of a population” (Willensky and Labeaux,
1918). As these goals may 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. Labour welfare is an
extension of the term Welfare and its application to labour. During the industrialization
process, the stress on labour productivity increased; and brought about changes in the
thinking on labour welfare. An early study under the UN observed as follows “in our opinion
most underdeveloped countries are in the situation that investment in people is likely to prove
as productive, in the purely material sense, as any investment in material resources and in
many cases, investment in people would lead to a greater increase of the flow of goods and
services than would follow upon any comparable investment in material capital”. The theory
that welfare expenditure, especially expenditure on health and education, is productive
investment has led to the view that workers could work more productively if they were given

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a fair deal both at the work place and in the community. The concept of labour welfare has
received 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 welfare 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 included working hours, working conditions, safety,

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

protection against indebtedness, industrial housing, restrooms, canteens, crèches, wash
places, toilet facilities, lunches, cinemas, theatres, music, reading rooms, holiday rooms,
workers’ education, co-operative stores, excursions, playgrounds, and scholarships and other
help for education of employees’ children.

Definition of Employee Welfare

Labor welfare has been defined in various ways, though unfortunately no single
definition has found universal acceptance.

“Efforts to make life worth living for worker”

“The oxford dictionary”

“The voluntary effort 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 customs of the industry and the conditions of the market”

“According to Encyclopedia of social sciences”

Some of the social scientists have noted that the problems of our contemporary
civilization are most marked in highly industrialized societies. It influences on the humans
social and psychological distress’s to avoid the distress. Some of the framers introduced the
welfare programmers and the activities must be necessary to human to make him happy. This
welfare approach has become necessary because of the social problems that have emerged as

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a result of industrialization in capitalistic settings. After the abolition of slavery in 1833 the
British colonies started importing Indian labor. Labor welfare activity was largely controlled
by legislation, the earliest act being the apprentices Act of 1850, the next act was fatal
accidents act of 1853, provide compensation to the workmen families who lost their lives as a
result of any actionable wrong. And the merchant shipping act 1859 providing health,
accommodation and protection to the employment of the seamen. To improving the working
conditions of the labor they enact the workmen’s breach of contract act, 1859 and the
employers’ and workmen’s (disputes) act 1868. The first Indian factories act was set up in
1881, which mark the beginning of a series of labor laws which brought about the
improvement in the working conditions of the workers who works in the Bombay textile
mills. The recommendations of the international labor conference in 1890, held in Berlin,
exercise a considerable influence on labor legislation in India. Under pressure from labor, the
Bombay textile mill owners decided to declare Sunday a day of rest. To make development
and implement the mentioned below, the government of India, on the advice of a special
commission, passed the Indian factories act of 1891, which was a being advance over the act
of 1891. Its main provisions were:

1) It applied to all factories employing 50 persons or more. It could he extended to

factories employing 20 persons.

2) A mid –day break of half an hour was made compulsory.

3) A weekly off –day was prescribed.

4) Women were allowed to work for maximum of 11 hours with a break of 1 ½ hours.

5) The lower and higher age limit of children employed in factories was respectively
raised to 9 and 14. They were allowed to work only in the day –time and for not more the 7
hours a day.

6) Local governments were empowered to make rules regarding sanitation and other
amenities for workers

7) Provision was made for inspection and penalties for breach of any provision of
factory act.

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 At the time first world war, in1919 International Labour Organization (ILO) was set up.
In the year of 1934 the Royal Commission gave priority to the labors safety, health and
ventilation.

At the time of Second World War in 1939 the total number of workers in India in
1,75,000 members. The government actively promoted welfare activities like providing the
minimum wages, crèches, ambulance rooms, canteens etc., started making their appearance
on the industrial sense.

After independence the factories act 1947 replaced all the provisions which are
i)provisions regarding safety-guarding of machines, ii) drinking water, iii) provisions
regarding health and cleanliness, iv) washing and latrine facilities, v) lunch rooms and rest
rooms, vi) sitting arrangements vii) first aid and dispensary facilities in all factories
employing more than 500 workmen, viii) crèches where more than 50 more women are
employed, ix) welfare officer where more than 500 workmen are employed, x) provision of
spittoons, xi) holidays with wages at the rate of one day for every 20 days worked, xii)weekly
hours – 48 for adults and 27 for younger persons, xiii) regulations regarding young persons,
xiv) rate of payment for overtime work, xv) rest for half an hour maximum of 5 hours of
work, xvi) number of hours work and xvii) weekly holidays.

In our country also introduced some of the welfare amenities had been provided to
the industrial labor through the Indian constitution. Concomitantly labor welfare in India has
gained in importance.

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.

OBJECTIVES

 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.

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  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).

Employee relations. An organization's director of industrial relations forms labor

policy, oversees industrial labor relations, negotiates collective bargaining agreements, and
coordinates grievance procedures to handle complaints resulting from management disputes
with employees. The director of industrial relations also advises and collaborates with the
director of human resources, other managers, and members of their staffs, because all aspects
of human resources policy—such as wages, benefits, pensions, and work practices—may be
involved in drawing up a new or revised work rules that comply with a union contract.

Labor relations managers and their staffs implement industrial labor relations
programs. Labor relations specialists prepare information for management to use during
collective bargaining agreement negotiations, a process that requires the specialist to be
familiar with economic and wage data and to have extensive knowledge of labor law and
collective bargaining procedures. The labor relations staff interprets and administers the
contract with respect to grievances, wages and salaries, employee welfare, healthcare,
pensions, union and management practices, and other contractual stipulations. In the absence
of a union, industrial relations personnel may work with employees individually or with
employee association representatives.

Dispute resolution—attaining tacit or contractual agreements—has become

increasingly significant as parties to a dispute attempt to avoid costly litigation, strikes, or
other disruptions. Dispute resolution also has become more complex, involving employees,
management, unions, other firms, and government agencies. Specialists involved in dispute
resolution must be highly knowledgeable and experienced, and often report to the director of
industrial relations. Mediator’s advice and counsel labor and management to prevent and,
when necessary, resolve disputes over labor agreements or other labor relations issues.
Arbitrators, occasionally called umpires or referees, decide disputes that bind both labor and

Page 24
management to specific terms and conditions of labor contracts. Labor relations specialists
who work for unions perform many of the same functions on behalf of the union and its
members.

Other emerging specialties in human resources include international human resources

managers, who handle human resources issues related to a company's overseas operations
and human resources information system specialists, who develop and apply computer
programs to process human resources information, match jobseekers with job openings, and
handle other human resources matters; and total compensation or total rewards specialists,
who determine an appropriate mix of compensation, benefits, and incentives. Work
environment. Human resources personnel usually work in clean, pleasant, and comfortable
office settings. Arbitrators and mediators many of whom work independently may work out
of home offices. Although most human resources, training, and labor relations managers and
specialists work in the office, some travel extensively. For example, recruiters regularly
attend professional meetings, participate in job fairs, and visit college campuses to interview
prospective employees. Arbitrators and mediators often must travel to the site chosen for
negotiations. Trainers and other specialists may travel to regional, satellite, or international
offices of a company to meet with employees who work outside of the main corporate office.
Many human resources, training, and labor relations managers and specialists work a
standard 40-hour week. However, longer hours might be necessary for some workers—for
example, labor relations managers and specialists, arbitrators, and mediators—when contract
agreements or dispute resolutions are being negotiated.

FEATURES OF EMPLOYEE WELFARE

The features of employee welfare are: -
* Employee welfare is a comprehensive term including various services, facilities and
amenities provided to employees for their betterment.
* The basic purpose in to improve the lot of the working class.
* Employee welfare is a dynamic concept.
* Employee welfare measures are also known as fringe benefits and services.
* Welfare measures may be both voluntary and statutory.

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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 individualizes 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 calculated 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.

EMPLOYEE PROTECTION AND WELFARE

STATUTORY WELFARE MEASURES
The preamble to our Indian Constitution promises justice - social, economic and
political. It also stresses Equality of status and of opportunity. Article 23 of the Constitution
prohibits traffic inhuman beings and forced labour. Article 24 prohibits employment of
children in factories. The article 38 and 39 spelt under Directive Principles of State Policy are
now enforceable as per the dictums laid by our Supreme Court.

Page 26
Constitution of India, Article 38: State to secure a social order for the promotion of welfare
of the people:

 The State shall strive to promote the welfare of the people by securing and
protecting as effectively as it may a social order in which justice, social, economic and
political, shall inform all the institutions of the national life.

 The State shall, in particular, strive to minimize the inequalities in income, and
endeavor to eliminate inequalities in status, facilities and opportunities, not only amongst
individuals but also amongst groups of people residing in different areas or engaged in
different vocations.

Constitution of India, Article 39: Certain principles of policy to be followed by the State. -
The State shall, in particular, direct its policy towards securing –

 That the citizens, men and women equally, have the right to an adequate means to
livelihood;
 That the ownership and control of the material resources of the community are so
distributed as best to sub serve the common good;
 That the operation of the economic system does not result in the concentration of
Wealth and means of production to the common detriment ;
 That there is equal pay for equal work for both men and women;
 That the health and strength of workers, men and women, and the tender age of
Children are not abused and that citizens are not forced by economic necessity to
enter avocations unsuited to their age or strength
 Those children are given opportunities and facilities to develop in a healthy manner
and in conditions of freedom and dignity and that childhood and youth are protected
against exploitation and against moral and material abandonment.

Non Statutory Measures

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

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 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 and 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.

Employee Referral Scheme: In several companies employee referral scheme is implemented

to encourage employees to refer friends and relatives for employment in the organization.

Through social security and social justice are spelt in our Constitution, they are never
put into practice thanks to our Executives who only pretend to implement the programmes of
the State. Some of the important Statutory Welfare measures given by the government are as
follows:

(i) The Factories Act of 1948

(ii) The Employees State Insurance Act 1948

(iii) The payment of Wages Act 1936

(iv) The Workmen's Compensation Act 1923

(v) The Employees' Provident Funds and Miscellaneous Provisions Act 1952.

(vi) The Payment of Gratuity Act, 1962

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(vii) The Maternity Benefit Act, 1961

FACTORIES ACT OF 1948

Purpose of this Act: An act to consolidate and amend the law regulating labour in factories.

The Factories Act is meant to provide protection to the workers from being exploited
by the greedy business employments and provides for the improvement of working
conditions within the factory premises. The main function of this act is to look after the
welfare of the workers, to protect the workers from exploitations and unhygienic working
conditions, to provide safety measures and to ensure social justice.

Sections 11 to 20 of the Factories Act deal about Health.

HEALTH

Section 11: Cleanliness

Section 12: Disposal of wastes and effluents

Section 13: Providing proper ventilation and maintaining proper temperature

Section 14: Removal of Dust and fume

Section 15: Providing artificial humidification

Section 16: No Overcrowding

Section 17: Proper Lighting

Section 18: Providing pure Drinking water

Section 19: Providing Latrines and urinals

Section 20: Providing Spittoon

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.

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 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. Toilet Facilities: 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 some 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.

11. Fire Extinguishers: Company should provide sufficient number of extinguishers to

safe guard the employees

SAFETY
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Section 21: Proper Fencing of machinery

Section 22: Precautions - Work on or near machinery in motion

Section 23: No Employment of young person’s on dangerous machines

Section 24: Providing Striking gear and devices for cutting off power

Section 25: Precautions near Self-acting machines

Section 26: Casing of new machinery

Section 27: Prohibition of employment of women and children near cotton openers

Section 28: Providing Hoists and lifts

Section 29: Provision for Lifting machines, chains, ropes and lifting tackles

Section 30: Protection near revolving machinery

Section 31: Protection near Pressure plant

Section 32: Provision for Floors, stairs and means of access

Section 33: Providing and precautions near Pits, sumps openings in floors, etc.

Section 34: No Excessive weights

Section 35: Protection of eyes

Section 36: Precautions against dangerous fumes, gases, etc

Section 36A: Precautions regarding the use of portable electric light

Section 37: Explosive or inflammable dust, gas etc.

Section 38: Precautions in case of fire

Section 39: Power to require specifications of defective parts or tests of stability

Section 40: Safety of buildings and machinery.

Section 40A: Maintenance of buildings

Section 40B: Appointment of Safety Officers

Safety of Employees

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  Fencing of machinery: All dangerous and moving parts of 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

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

 Employment of young person’s 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
Section 42: Providing Washing facilities

Section 43: Providing Facilities for storing and drying clothing

Section 44: Providing Facilities for sitting

Section 45: First-aid appliances to be kept.

Section 46: Canteens at subsidized rates.

Section 47: Shelters, rest rooms and lunch rooms for workmen.

Section 48: Crèches for babies of working women.

Section 49: Appointment of Welfare officers.

It is the duty of the Chief Inspector of Factories to ensure enforcement of all the above
Provisions of the Factories Act in respect of safety, health and welfare of employees.

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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.

Welfare of Employee
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.

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  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.

THE WORKMEN'S COMPENSATION ACT 1923

Purpose of the Act: An Act to provide for the payment of certain classes of employers to
their workmen of compensation for injury by accident. The workmen's compensation
Act1923 is one of the earliest pieces of labour legislation. This act encompasses all cases of
accidents arising out of and in course of employment. The rate of Compensation to be paid in
a lump sum is determined by a schedule provided in the act proportionate to the extent of
injury and the loss of earning capacity. The younger the age of the worker and higher the
wage the greater is the compensation. The Act provides the formula for calculating the
compensation. The injured person can claim compensation and in the case of death, the
compensation is claimed by dependents of the deceased. This law applies to the organized as
well as unorganized sectors that are not covered by the E.S.I. scheme. The following
definitions and the sections of law are presented for the students to take note of them.

Administration: The act is administered by the State Governments which appoint

Commissioners for this purpose under Sec.20 of the Act.

Benefits: Under the Act, compensation is payable by the employer to 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. If the workman dies, the compensation
is to be paid to his dependants. The Act distinguishes among three types of injuries:
permanent total disablement, permanent partial disablement and temporary disablement. The
amount of compensation to be paid on the death or disablement of workman is given in
Fourth Schedule of the Act and varies according to his wages, the type of injury and age. It is

Page 34
an obligation upon the employer to make the payment of compensation within one month
from the date on which it falls due.

Sources of Funds: All compensation under the act is payable by the employer.

THE PAYMENT OF WAGES ACT

The Payment of Wages Act was enacted as early as 1936 during the colonial rule. The

Purpose of this act is to regulate payment of wages. This insists on the payment of wages by
the seventh day or the tenth day of the succeeding month and in case of weekly payment the
last day of the week.

Section 3: Responsibility for payment of wages. - Every employer shall be responsible for
the payment to person employed by him of all wages required to be paid under this Act.
Provided that, in the case of persons employed (otherwise than by a contractor) –

 In factories, if a person has been named as the manager of the factory under Clause of
sub-section (1) of section 7 of the Factories Act, 1948 (63 of 1948)
 In industrial or other establishments, if there is a person responsible to the Employer
for the supervision and control of the industrial or other establishments
 Upon railways (otherwise that in factories), if the employer is the railway
administration and the railway administration has nominated a person in this behalf
for the local area concerned, the person so named, the person so responsible to the
employer, or the person so nominated, as the case may be (shall also be responsible)
for such payment.
Section 4: Fixation of wage-periods

> Every person responsible for the payment of wages under section 3 shall fix periods
(in this Act referred to as wage-periods) in respect of which such wages shall be payable.

> No wage-period shall exceed one month.

Section 5: Time of payment of wages

(1) The wages of every person employed upon or in

 Any railway, factory or {industrial or other establishment} upon or in which less than
one thousand persons are employed, shall be paid before the expiry of the seventh
day.

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  Any other railway, factory or {industrial or other establishment}, shall be paid before
the expiry of the tenth day, after the last day of the wage-period in respect of which
the wages are payable:
(2) Where the employment of any person is terminated by or on behalf of the employer, the
wages, earned by him shall be paid before the expiry of the second working day from the day
on which his employment is terminated.

(3) The State Government may, by general or special order, exempt, to such extent and
subject to such conditions as may be specified in the order, the person responsible for the
payment of wages to persons employed upon any railway (otherwise than in a factory) from
the operation of this section in respect of the wages of any such persons or class of such
persons.

(4) Save as otherwise provided in sub-section (2), all payments of wages shall be

Made on a working day.

THE EMPLOYEES’ PROVIDENT FUND ACT 1952

The purpose of this Act: An Act to provide for the institution of Provident Funds, pension
funds and deposit linked fund for employees in factories and other establishments.
Contributions of 10% of the wages are paid by the employer and another 10% by the
employees. This amount is deposited with the government which pays an interest. This Act
also now has provisions for pension scheme.

Administration: The employees Provident Funds, Pension and Insurance Schemes framed
under the Act are administered by a tripartite Central Board of trustee, consisting of
representatives of employers and employees and persons nominated by the Central and State
Governments.

Benefits: The act has made schemes for 3 types of benefits, provident fund, family pension
and deposit linked insurance. Family pension is payable to the widow or widower up to the
date of death or re-marriage whichever is earlier. In the absence of the widow or the widower
it is payable to the eldest surviving unmarried daughter until she attains the age of 21 years or
marries whichever is earlier. The dependents of the employee also receive an additional
amount known as the deposit linked insurance which is equivalent to the average balance
lying to the credit of the employee on his provident fund during the preceding 3 years, subject

Page 36
to a maximum of Rs 10000 provided that such employee has kept a minimum average
balance of Rs. 1000 in the provident fund.

Source of Funds: Here both the employer and the employee are required to contribute the
provident fund every month at 8.33% of the basic wages, dearness allowance and retaining
allowance. An employee can make a larger contribution up to 10% but there is no compulsion
for the employer to make a matching contribution.

THE PAYMENT OF GRATUITY ACT, 1972

Purpose of the Act: An act to provide for scheme for the payment of gratuity to employees
engaged in factories, mines, oil fields, plantations, ports, railway companies, shops or other
establishments and matters connected therewith or incidental thereto. Gratuity shall be
payable to an employee on the termination of his employment after he has rendered
continuous service for not less than five years.

(a) On his superannuation

(b) On his retirement or resignation

(c) On his death or disablement

For every completed year of service or part thereof in excess of six months the employer shall
pay gratuity to an employee at the rate of 15 days’ wages based on the rate of wages last
drawn by the employee concerned.

Section 4: Payment of gratuity

(1) Gratuity shall be payable to an employee on the termination of his employment after he
has rendered continuous service for not less than five years:

(a) On his superannuation, or

(b) On his retirement or resignation, or

(c) On his death or disablement due to accident or disease;

Provided that the completion of continuous service of five years shall not be necessary where
the termination of the employment of any employee is due to death or disablement; provided
further that in the case of death of the employee, gratuity payable to him shall be paid to his
nominee or, if no nomination has been made, to his heirs, and where any such nominees or

Page 37
heirs is a minor, the share of such minor, shall be deposited with the controlling authority
who shall invest the same for the benefit of such minor in such bank or other financial
institution, as may be prescribed, until such minor attains majority.

(2) For every completed year of service or part thereof in excess of six months, the employer
shall pay gratuity to an employee at the rate of fifteen days' wages based on the rate of wages
last drawn by the employee concerned; provided that in the case of a piece-rated employee,
daily wages shall be computed on the average of the total wages received by him for a period
of three months immediately preceding the termination of his employment, and, for the
purpose, the wages paid for any overtime work shall not be taken into account; provided
further that that in the case of {an employee who is employed in a seasonal establishment and
who is not so employed throughout the

Year} the employer shall pay the gratuity at the rate of seven days' wages for each season.

(3) The amount of gratuity payable to an employee shall not exceed {three lakhs and fifty
thousand} rupees.

(4) For the purpose of computing the gratuity payable to an employee who is employed, after
his disablement, on reduced wages, his wages for the period preceding his disablement shall
be taken to be the wages received by him during that period, and his wages for the period
subsequent to his disablement shall be taken to be the wages as so reduced.

(5) Nothing in this section shall affect the right of an employee to receive better terms of
gratuity under any award or agreement or contract with the employer.

(6) Notwithstanding anything contained in sub-section

(a) The gratuity of an employee, whose services have been terminated for any act, willful
omission or negligence causing any damage or loss to, or destruction of, property belonging
to the employer 'shall be forfeited to the extent of the damage or loss so caused.

(b) The gratuity payable to an employee {may be wholly or partially forfeited} -

(i) If the services of such employee have been terminated for his riotous or disorderly conduct
or any other act of violence on his part, or

(ii) If the services of such employee have been terminated for any act which constitutes an
offence involving moral turpitude, provided that such offence is committed by him in the
course of his employment.

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THE MATERNITY BENEFIT ACT, 1961
Purpose of the Act: An Act to regulate the employment of women in certain establishments
for certain period before and after child-birth and to provide for maternity benefit and certain
other benefits.

Section 4: Employment of or work by, women, prohibited during certain periods

(1) No employer shall knowingly employ a woman in any establishment during the six weeks
immediately following the day of her delivery, (miscarriage or medical termination of
pregnancy).

(2) No women shall work in any establishment during the six weeks immediately following
the day of her delivery (miscarriage or medical termination of pregnancy). (3) Without
prejudice to the provisions of section 6, no pregnant women hall, on a request being made by
her in his behalf, is required by her employer to do during the period specified in subsection

(4) Any work which is of an arduous nature or which involves long hours of standing, or
which in any way is likely to interfere with her pregnancy or the normal development of the
foetus, or is likely to cause her miscarriage or otherwise to adversely after her health.

(4) The period referred to in sub-section (3) shall be -

(a) The period of one month immediately proceeding the period of six weeks, before the date
of here expected delivery;

(b) Any period during the staid period of six weeks for which the pregnant woman does not
avail of leave of absence under section 6.

Section 5: Right to payment of maternity benefits:

(1) Subject to the provisions of this Act, every woman shall be entitled to, and her employer
shall be liable for, the payment of maternity benefit at the rate of the average daily wage for
the period of her actual absence, that is to say, the period immediately preceding the day of
her delivery, the actual day of her delivery and any period immediately following that day.

(2) No woman shall be entitled to maternity benefit unless she has actually worked in an

Establishment of the employer from whom she claims maternity benefit, for a period of not
less than {eighty days} in the twelve months immediately preceding the date of her expected
delivery. Provided that the qualifying period of {eighty days} aforesaid shall not apply to a
Page 39
woman who has immigrated into the State of Assam and was pregnant at the time of the
immigration.

(3) The maximum period for which any woman shall be entitled to maternity benefit shall be
twelve weeks of which not more than six weeks shall precede the date of her expected
delivery. Provided that where a woman dies during this period, the maternity benefit shall be
payable only for the days up to and including the day of her death ; Provided further that
where a woman, having been delivered of a child, dies during her delivery or during the
period immediately following the date other delivery for which she is entitled for the
maternity benefit, leaving behind in either case the child, the employer shall be liable for the
maternity benefit for that entire period but if the child also

Dies during the staid period, then, for the days up to and including the date of the death of the
child.

EMPLOYEES STATE INSURANCE ACT 1948

Purpose of the Act: This Act covers all workers whose wages do not exceed Rs 1600 per
month and who are working in factories, other than seasonal factories, run with power and
employing 20 or more workers. The coverage can be extended by the State Government with
the approval of the Central Government.

Administration: The Act is administered by the E.S.I Corporation, an autonomous body

consisting of representatives of the Central and State Governments, employers, employees,
medical profession and Parliament.

Benefits: The Act, which provides for a system of compulsory insurance, is a landmark in the
history of social security legislation in India. An insured person is entitled to receive the
following types of benefits:

 Medical Benefit
 Sickness Benefit
 Maternity Benefit
 Disablement benefit
 Dependant’s Benefit
 Funeral benefit

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Sources of Funds: the Act provides for the setting up of the Employees State Insurance fund
from the contributors received from employers and employees and various grants, donations
and gifts received from Central or State Governments, local authorities and individuals. The
rate of employer’s contribution is 5% of the wage bill and that of the employee’s contribution
is 2.25%.

VOLUNTARY WELFARE MEASURES

These are some of the voluntary welfare measures given by the employer to the
employees.

They are as follows:

 Housing facilities
 Transportation facilities
 Medical facilities
 Cultural facilities
 Recreation facilities
 Consumers co-operative society
 Loans and various advances
 Leave travel concession
 Gifts to the employees holiday games
 Labour welfare fund
 Vehicle stand for parking
 Libraries
 Cafeterias

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

Page 41
 each state) to ensure enforcement of various provisions of Factories Act i8n respect
of safety, health 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.

Appraisal of Welfare Services

1. One of the main obstacles in the effective enforcement of the welfare provisions of
the Factories Act has been the quantitative and qualitative inadequacy of the
inspection staff.

2. At present, a labour welfare officer is not able to enforce laws independently because
he has to work under the pressure of management.

3. Women workers do not make use of the crèche facilities either because they are
dissuaded by the management to bring their children with them or because they have
to face transport difficulties.

National Commission on Employee Recommendations

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 1. The statutory provisions on safety are adequate for the time being effective
enforcement is the current need.

2. Every fatal accident should thoroughly be enquired into and given wide publicity
among workers.

3. Employers should play a more concerted role in safety and accident prevention
programmes and in arousing safety consciousness.

4. Safety should become a habit with the employers and workers instead of remaining a
mere ritual as at present.

5. Unions should take at least as much interest in safety promotion as they take in claims
for higher wages.

SOCIAL SECURITY
The connotation of the term “Social Security” varies from 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

Page 43
Page 44
 Chapter 3

Research
Methodology

Page 45
 RESEARCH METHODOLOGY
Research methodology is the scientific way to solve the research problem. This
involves exploring all possible methods of solving the research problem; examine the
alternative methods one by one and arriving at the best possible method considering the
resources at the disposal of the researcher.

RESEARCH DESIGN
A research design is the specification of methods and procedures for acquiring the
information needed to structure or to solve problem. It is the overall operational pattern or
framework of the project that stipulated what information to be selected, from which source ,
by what procedures.

DESCRIPTIVE RESEARCH
The research had been interested in knowing the proportion of people in a given
population who have behaved in a particular manner, making projections of certain thing and
determining the relationship between two or more variables in some areas. As the set up has
been a well structured and rigid which could not be changed by giving sufficient thought in
forming questions, deciding type of data to be collected and procedure that has been used
gives the proof of using descriptive research.

In descriptive also, there has been use of cross sectional studies only because the
researcher has taken only a sample of element from the given population.

In the cross sectional study, the survey research has been selected as a detailed and
has to be obtained from a sample of large population.

ANALYTICAL RESEARCH
The researcher by using the results of the statistical and mathematical analysis came
to a conclusion to show the scope and other needs for expanding the market.

CONCLUSIVE RESEARCH
Based on the descriptive and analytical researches, the company can arrive at a
conclusion regarding their feature course of action. In this project, descriptive research is
followed.
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RESEARCH INSTRUMENTS
After the research is selected, the data collection through questionnaire, which is
designed by covering the objectives, is defined.

Questions are both open and closed ended types. The questions in the questionnaire are in the
structured format. Direct art structured questionnaire had been designed and used.

OPEN ENDED QUESTIONS

These types of questions are used to get complaints, actual feelings and suggestions
from customers.

CLOSED ENDED QUESTIONS

In this type, there are two kinds of questions:

-Dichotomous

-Multiple choices

-Chi – Square Test

In this project, both open and closed are followed

SOURCES OF DATA
The data that is being used in study was collected from two methods:

1. Primary data

2. Secondary data

PRIMARY DATA
The primary data do not exist already in records and publications. Through research,
had to gather the data freshly from specific survey.

The primary data can be gathered by way of observation method where the research
mix with the people concerned with use of particular product and note important closed by
observing the respondents.

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 The second method of collection is by way of experimentation method where by some
variables are followed to vary under controlled environment and its cause and effect
relationship is studied

SECONDARY DATA
The secondary data refers to these data which were gathered for some offer purpose
and are already available in the firm’s records and business magazines, government
publications, company website, competitor website browsers.

In the project, the secondary data is collected through company annual reports and
websites.

SAMPLE DESIGN
Introduction
The precision and accuracy of the survey results are affected by the manner to which the
sample has been chosen.

a) Sample

A part of a population, which is provided by some process on other, usually by

deliberate selection with the object of investigating the properties of the parent
population set.

b) Sampling Unit

The sampling unit is the basic unit containing the elements of the employees.
Sample Unit: Employees

c) Sample Size

The number of samples chosen from target population is 100 employees

SAMPLING METHODS
Page 48
 Sampling method indicates how the sampling units are selected. There are two
methods namely, probability and non- probability methods

PROBABILITY SAMPLING
Probability sampling method is that in which every item in the universe has got chance or
probability of being chosen for the sample. This implies that the selection of sample items are
independent of the person making the study that is the sampling operation is controlled,
objectively that the items will be chosen strictly at random. In probability sampling, there are
so many methods. % Simple random sampling

 Every member of the population has an equal chance of selection.

 Stratified random sample

 The population is divided into mutual groups and random samples are drawn from
each one cluster sample

 The population is divided into mutually exclusive groups and the researcher draws a
sample of the groups to interview.

NON-PROBABILITY SAMPLING
Non-Probability sampling methods are those which do not provide every item in the
universe with a known chance of being included in the sample. The selection process is at
least particularly subjective. The following are some of the methods of Non-Probability
sampling:

Chi-square Test
The chi-square test is one of the simplest and most widely used non-parametric tests
in statistical work. The χ2 are the Greet letter chi the chi-square (χ2) test was first used by
Karl Pearson in the year 1990. The quantity chi-square describes the magnitude of the
discrepancy between theory and observation. It is defined as:

Chi-Square = Σ(O-E)2 / E

Where O = Observed frequency

E = Expected frequency

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To determine the value of chi-square, the steps required are:

1. Calculated the expected frequencies

Total no. of Respondents

E = ---------------------------------------

Different types of respondents

2. Take the difference between observed and expected frequencies and obtain the
squares of these differences i.e.,
(O-E) 2

3. Divide the values of (O-E)2 with respective expected frequency and obtain the total
i.e.,

Σ (O-E) 2 / E

Degree of Freedom is (n-1).

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 Chapter 4

Data Interpretation

Page 51
 TABLE - 00
Response on provision for social insurance measures provided by company?

opinion No. of respondents Percentage

Yes 67 67
To some extent 19 19
No 14 14
Total 100 100
CHART 00

WORKING CONDITIONS

18

Yes
No
56 To some extent
26

Inference
The table 10 and diagram relative to the provisions for social Insurance measures
which provided by company mostly the 67% employees are satisfied well and 19% of
employees are partly satisfied but 14% of employees are not satisfied with the social
insurance measures which the company has provided to them.

CHI SQUARE TEST-00

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TO TEST THE RESPONDENT’S RESPONSE ABOUT SOCIAL INSURANCE
MEASURES PROVIDED BY THE COMPANY?

Dimensions YES TO SOME NO TOTAL

EXTENT

Respondents 67 19 14 100

Null Hypothesis
Ho: More number of the respondents on working conditions in the factory is not satisfied.

OBSERVED EXPERIMENTAL Oi-Ei (Oi-Ei)2 (Oi-Ei)2/Ei

FREQUENCY FREQUENCY(Ei)
(Oi)

67 33.33 33.67 1133.66 34.01

19 33.33 -14.33 205.34 6.16

14 33.33 -19.33 373.64 11.21

TOTAL 50.38

Expected frequency
Ei =100/3
= 33.33
Calculated value
X2 = (Oi-Ei) 2/Ei
= 50.38
Tabulated value = Degree of freedom = (n-1) = (3-1) =2
5% significance level for 2 degree of freedom at = 3.96
Calculated value > table value
50.38 > 3.96

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 Conclusion
It is significant hence we reject the null hypothesis. More number of the respondents
on social insurance measures provided by the company is satisfied.

TABLE - 01
Are you able manage your work pressure, tension, Stress?

Opinion No. of Respondents Percentage

Yes 56 56
No 26 26
To Some Extent 18 18
Total 100 100

CHART 01

WORKING CONDITIONS

18

Yes
No
56 To some extent
26

Inference

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 The table 11 and diagram relate to the successful management and control of health
and stress level by the workers in the company. They are about only 56%of the respondents
could manage both health and stress level without any major problem. Though this is
satisfactory still there is a scope for increasing the percentage levels. They are about 26%
respondents unable to manage both health and work stress due to the work pressures and
other tensions.

TABLE - 02
Are you satisfied with health check up camp conduct by the management every year?

Opinion No. of Respondents Percentage

Strongly agree 86 86
Agree 14 14
Average agree 00 00
Total 100 100

CHART 02

100 100 Yes

No
Total

Inference
From the above table it can be inferred that all of the respondents are agree with
master health checkup group conducted by the management every year.

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 TABLE 03
Do you satisfy with the first aid boxes provided by the management in case of any
accident on emergency period?

Opinion No. of Respondents Percentage

Yes 100 100
No 00 14
Total 100 100

CHART 03
FIRST AID BOXES PROVIDED BY THE MANAGEMENT

100 100 Yes

No
Total

Inference
From the above table and chart shows that all of the respondents are 100% satisfied
with First Aid boxed provided by the company

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 TABLE 04
Are you satisfied with uniforms and shoes issued by the company?

Opinion No. of Respondents Percentage

Satisfied 96 96
Dissatisfied 04 04
Total 100 100

CHART 04
UNIFORM AND SHOE FACILITES

No. of Respondents
Satisfied
96 Dissatisfied
100
Total
4

Inference
From the above table it can be inferred that 96% employees are satisfied with uniform
and shoes issued by the company remaining 4% employees are not satisfied with those
facilities provided by the company.

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 TABLE 05
Are you satisfied by the direction, guidance and support provided by superiors?

Opinion No. of Respondents Percentage

Highly satisfied 23 23
Satisfied 45 45
Dissatisfied 02 02
Neither 30 30
satisfied nor
dissatisfied
Total 100 100

CHART 05
Direction, Guidance and Support provided by the superiors

No. of Respondents

23
30 Highly satisfied

Satisfied

Dissatisfied
2
Neither satisfied nor
dissatisfied

45

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Inference
From the above table and chart it can be inferred that 23% are highly satisfied and
45% are satisfied and 02% are dissatisfied and remaining 30% are neither satisfied nor
dissatisfied by the direction, guidance and support provided by the superiors in the factory.

TABLE 06
How often you interact with your colleagues in your work-place (only job related
interactions)?

Opinion No. of Respondents Percentage

Very often 12 12
Often 40 40
Rarely 35 35
Very rarely 13 13
Total 100 100

CHART 06
Interact with colleagues in work-place

No. of Respondents
Satisfied
Dissatisfied
96 Total
100

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Inference
The table and diagram shows that often workers are interact with their colleagues in
the work-place

TABLE 07
How often do you seek cooperation from your boss?

Opinion No. of Respondents Percentage

Yes 88 88
No 12 12
Total 100 100

CHART 07
Cooperation from boss in the factory

No. of Respondents
Satisfied
96 Dissatisfied
100
Total
4

Inference
From the table and chart shows that 88% are satisfied with their cooperation from
their boss and remaining 12% are not satisfied.

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 TABLE 08
Are you satisfied with recreation facilities (trips and games) provided by the company?

Opinion No. of Respondents Percentage

Satisfied 87 87
Dissatisfied 13 13
Total 100 100

CHART 08
RECREATIONAL FACILITIES PROVIDED BY THE COMPANY

Recreational facilities provided by the company

100
90 87
80
70
60
No. of Respondents
50
40
30
20 13
10
0
Satisfied Dissatisfied

Inference
From the above table and chart it can be inferred that maximum employees are
satisfied with the recreational facilities provided by the company.

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 TABLE 09
Do you feel free to offer comment and suggestion in your factory?

Opinion No. of Respondents Percentage

Yes 82 82
No 18 18
Total 100 100

CHART 09
Working hours of the job

Working hours of job

18

Yes
No

82

Inference
From the table it can be inferred that 82% of respondents are satisfied with their
working hours of the job and remaining 18% are not satisfied with their working hours.

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 TABLE 10
How motivating is the work environment?

Opinion No. of Respondents Percentage

Extremely 42 42
motivating
Fairly 25 25
motivating
Demotivating 03 03
Neither 30 30
motivating nor
Demotivating
Total 100 100

CHART 10
Motivating in the work environment

No. of Respondents
Extremely Fairly motivating
motivating
42
Demotivating Neither motivating
100 nor Demotivating
3 25
Total
30

Inference

Page 63
 From the above table and chart shows that 42% extremely motivating, 25%fairly
motivating, 03% Demotivating and 30% neither motivating nor Demotivating in the work
environment.

LIMITATIONS OF THE STUDY

 My study confines to welfare, Health and safety aspects of HCC Ltd.

 Efforts are made to collect the true information as far as possible without resorting to
any guess work.

 In case of sensitive information in nature, direct personal interviews are conducted in

order to glue as much information as possible.

 Few of the employees were a little bit hesitant to answer the questions this might have
deviated the findings at least to some extent.

 Due to time constraints study was limited to a part of the employees, which in turn
may reflect the overall attitude of the employees.

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 FINDINGS
The following are the major findings from the Survey and Analysis on Employee

welfare, health and safety measures at HCC Ltd . :

 65% of respondents have expressed their satisfaction regarding the welfare facilities

provided by the company such as canteen and rest shelter.

 85% of respondents agreed that the pure drinking water is facilitated in the company.

 62% of respondents satisfy with clean, lighting and ventilation provided by company.

 47% of respondents have expressed that the shift allowances provided by company.

 69% of respondents are comfort and satisfy about the administrative arrangement with

in a plant for welfare provided by the company.

 68% of respondents satisfy with the health service and occupational safety provided

by the company for every year.

 61% of respondents have expressed their satisfaction towards Toilet facilities

provided.

 68% of respondents satisfied about arrangement for the prevention of fatigue.

 59% of respondents satisfying the working conditions in the company.

 85% of respondents are fairer to buy the products available in company operative

stores.

 67% of respondents are satisfied of the social insurance measurers.

 They are about only 56% of respondents can manage the work pressure, tension, and

stress.

 86% of respondents consider medical facilities of the company are outstanding.

 100% of respondents are satisfied on first-aid boxes provided by the factory.

 96% of workers are satisfied with uniform and shoes provided by the company.

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 SUGGESTIONS
 Welfare facilities like canteen and rest shelter has to be provided to the employees as a
whole.
 Only half of the respondents said that a shift allowance provided by the company is
good, so that satisfy more respondents certain change should be taken in shift
allowances.
 Only 60% of the respondents are satisfied with cleaning and ventilation, so for more
respondents satisfaction with cleaning and ventilation should be more effective.
 The working condition in the company is implemented in such a way that it should
satisfied more number of respondents.
 Welfare measures regarding recreational facilities should be properly implemented by
company.
 The social insurance measures provided to the respondents should be taken necessary
steps.
 The satisfaction facilities must be properly implemented in the company for more
respondents’ comfort ability.
 The company should maintain good relationship with the workers and superiors.
 The work pressure, tension and stress should not be implemented more towards the
respondents for more increase of productivity in the company.

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 CONCLUSION
It is matter of great satisfaction that majority of the respondents observe that
welfare measures are good. There is always scope for improving health and safety measures
for the workers. It argues well for the company that majority of the respondents have
expressed their satisfaction with regard to training in their area of job operations.
The pleasant surprise is that the company provides training for the workers
according to their most preferred choice. This motivates the workers in a long way in
achieving both organizational and individual goals. Workers are able to manage work and
family life without any major problem shows again that stress levels are manageable at HCC

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