Directorate of Open and Distance learning

Guru Nanak Dev university ,Amritsar

s.no Name of student Surbhi Bhatia
1 Father’s name Sanjeev Bhatia
2 Student ID /Roll no . 2016012109835
3 Class (sem.) ODL SEM 4
4 0DMBA -409S
Subject (course) code
5 Subject (course) name SEMINAR -4
6 Learner Support centre GNDU AMRITSAR ODL
7 Topic LABOUR WELAFRE CONCEPT
FEATURES NEED
8 No. of pages 30
9 Students signature and SURBHI
date
MEANING
Labour Welfare
Labour welfare relates to taking care of the well-being of
workers by employers, trade unions,
governmental and non-governmental institutions and agencies.
Welfare includes anything that is
done for the comfort and improvement of employees and is
provided over and above the wages.
Welfare helps in keeping the morale and motivation of the
employees high so as to retain the
Employees for longer duration. Employee welfare includes
monitoring of working conditions,
Creation of industrial harmony through infrastructure for
health, industrial relations and insurance
Against disease, accident and unemployment for the workers
and their families.
Oxford dictionary- “ Labour welfare is efforts to make life worth
living for workmen.” The need
for providing such services and facilities arise from the social
responsibility of industries, a
desire for upholding democratic values and a concern for
employees. Welfare includes anything
that is done for the comfort and improvement of employees
and is provided over and above the
wages.
According to ILO, labour welfare can be defined as a term,
which is understood to include such
Services , facilities, and amenities as may be established in or in
the vicinity of undertakings to
Enable the persons employed in them to perform their work in
healthy, congenial surroundings
and to provide them with amenities conducive to good health
and high morale.

Seven Theories constituting the conceptual frame work of

labour welfare activities are the following:
1. The Policing Theory of Labour Welfare:
The policing theory is based on assumption that Human Being is
so much selfish and always
tries for own benefits whether on the cost of others welfare.
Any of the employers will not work
for the welfare of employees until he is forced to do so. This
theory is based on the contention
that a minimum standard of welfare is necessary for workers.
The assumption on which the theory is based is the without
compulsion, supervision and fear of
punishment, no employer will provide even the barest
minimum of welfare facilities for workers
this theory is based on the assumption that man is selfish and
self-centered, and always tries to
achieve his own ends, even at the cost of the welfare of others.
This is based on the contentionthat a minimum standard of
welfare is necessary for labourers. Here the assumption is that
without policing, that is, without compulsion, employers do not
provide even the minimum
facilities for workers.
According to this theory, owners and managers of industrial
undertakings get many opportunities
for exploitation of labour. Hence, the state has to intervene to
provide minimum standard of
welfare to the working class.
2. The Religious Theory of Labour Welfare: This is based on the
concept that man is essentially “a religious animal.” Even today,
many acts of man are related to religious sentiments and
beliefs. These religious feelings sometimes prompt an employer
to take up welfare activities in the expectation of future
emancipation either in this life or after it. The theory views
were an essentially religious. Religious feelings are what
sometimes prompt employers to take up welfare activities in
the belief of benefits either in his life or in support after life.
Any good work is considered an investment, because both the
benefactor and the beneficiary are benefited by the good work
done by the benefactor. This theory does not take into
consideration that the workers are not beneficiaries but rightful
claimants to a part of the gains derived by their labour.

3. The Philanthropic Theory of Labour Welfare: Philanthropy is

the inclination to do or practice of doing well to ones fellow
men. Man is basically self- centered and acts of these kinds
stem from personal motivation, when some employers take
compassion on their fellowmen, they may undertake labor
welfare measures for their workers. This theory is based on
man’s love for mankind. Philanthropy means “Loving mankind.”
Man is believed to have an instinctive urge by which he strives
to remove the suffering of others and promote their well-being.
In fact, the labour welfare movement began in the early years
of the industrial revolution with the support of philanthropists.

4. The Paternalistic or Trusteeship Theory of Labour Welfare: In

this theory it is held that the industrialists or employers hold
the total industrial estate, properties and profits accruing form
them in trust for the workmen, for him, and for society. It
assumes that the workmen are like minors and are not able to
look after their own interests that they are ignorant because of
lack of education. Employers therefore have the moral
responsibility to look after the interests of their wards, who are
the workers. In other words, the employer should hold the
industrial assets for himself, for the benefit of his workers, and
also for society. The main emphasis of this theory is that
employers should provide funds on an ongoing basis for the
well-being of their employees.

5. The Placating Theory of Labour Welfare: As labour groups are

becoming better organized and are becoming demanding and
militant, being more conscious of their rights and privileges that
even before, their demand for higher wages and better
standards increases. The placing theory advocates timely and
periodical acts of labour welfare to appease the workers. This
theory is based on the fact that the labour groups are becoming
demanding and militant and are more conscious of their rights
and privileges than ever before. Their demand for higher wages
and better standards of living cannot be ignored. According to
this theory, timely and periodical acts of labour welfare can
appease the workers. They are some kind of pacifiers which
come with a friendly gesture. 6. The Public Relations Theory of
Labour Welfare: This theory provides the basis for an
atmosphere of goodwill between labour and management, and
also between management and the public, labour welfare
programmes under this theory, work as a sort of an
advertisement and help an organization to project its good
image and build up and promote good and healthy public
relations. The labour welfare movements may be utilized to
improve relations between management and labour. An
advertisement or an exhibition of a labour welfare programme
may help the management projects a good image of the
company.
7. The Functional Theory of Labour Welfare: The concept
behind this theory is that a happy and healthy person is a
better, more productive worker. Here, welfare is used as a
means to secure, preserve and develop the efficiency and
productivity of labour. The approach to any solutions, especially
as that as between the workers and the management should be
dialogue and an understanding of one another’s viewpoint.

Labour welfare is an important dimension of industrial

relations which includes overall welfare facilities designed to
take care of well being of employee's and in order to increase
their standard of living. It means the adoption of measures
to promote the physical, social, psychological and general well
being of the working people.

DEFINITIONS = According to Proud it refers to “the efforts on

the part of the employers to improve the conditions of
employment in their own factories” Prof. Richardson
includes under it “any arrangement of working conditions
which contribute to the workers health and safety, comfort,
efficiency, economic security, education and recreation”.
CONCEPTS OF LABOUR WELFARE
Commodity Concept: Wages were higher when the supply of
labour is scarce in relation to the demand for labour and wages
were low when supply was substantially in excess of the
demand for it. This gave rise to the idea that labour, affected
by the law of supply and demand, was like a commodity, the
price of which was determined by the supply and the demand
for it. Machinery Concept: The commodity conception
overlooked the fact that the employer bought and sold, not the
actual labour, but the products the labour produced. He
determined the value of labour by the value of the goods and
profit. The employers thus started to regard their employees
largely as machines capable of a certain amount of out-put.
Just as we try to purchase machinery and plant with the lowest
direct outlay, so we can hire labour as cheaply as possible and
just as we try to keep plant and equipment operating
economically as long as possible and junk them for better when
necessary, so we can use and discard human labour .

Charity Concept: According to this, it was the duty of those

who were in fortunate positions to assist those who are in need.
Charity was given for salvation of the donor or out of human
sentiments and with pity towards the distressed. Thus
labour welfare was mainly based on human and religious
motive and social workers were conceived as kind hearted
persons who devoted their efforts to the care and protection of
the needy and the distressed people of the society.
Natural Resource Concept: Some statesmen began to conceive
of labour as natural resources, which the state should protect.
Out of this conception came child labour laws, restrictions of
hours Of women workers, workmen’s compensation and Health
and Safety Legislation.
Democratic Concept: It is also know as citizenship concept. The
workers are considered as citizens of the industry in which they
are employed and entitled to a right to have a voice in
determining the rules and regulations under which they work.
The result of this realization was industrial democracy with its
shop committee, industrial councils, employee representation
plans and so on.
Partnership Concept: The partnership relationships imply
mutual responsibilities as well as the sharing of the fruits of the
joint endeavors. The earliest efforts to translate this idea into
action were the fostering of stock-ownership plans. Recently,
profit sharing has come into prominence. Some argue that the
partnership concept is fallacious as their can be no mutuality
of interest between owner who are seeking large profits and
workers who desire high wages that the two interests are
incompatible and cannot be reconciled.
Social Welfare Concept: In the past, social welfare was mainly
based on humanitarian and religious motives. This concept, in
course of time, became inadequate and unsatisfactory to meet
the needs of modern societies. The modern concept of social
welfare is based on the recognition of the rights and worth of
the individuals. In short, social welfare is conceived with a
broad range of activities and programs directed to human well-
being or to alleviate social Labour welfare leads to functioning.

Labour welfare leads to

EMPLOYER
EMPLOYEE
EMPLOYEE BENEFITS
SATISFICATION
HIGHER PRODUCTIVITY

OBJECTIVES OF LABOUR WELFARE

The objectives of Labor Welfare are
1. To increase efficiency and productivity among workers
2. To improve moral & loyalty
3. To build up stable labor force and to lower turnover &
Absenteeism
4. To earn goodwill and enhance public image
5. To reduce the influence of union
6. To attract efficient employees
7. To reduce the threat of further government
Intervention.
8. High standards of work, apart from other labour
legislations.
9. Improvement in Quality of work life (QWL)
10. Improve the Industrial system, and conditions of work.
11. Enhance sense of belonging, responsibility and dignity
Among the employees.
12. Improvement and Development of employees.

PRINCIPLES OF LABOR WELFARE

1. Carried At all levels in the organisation.
2. Proper Co-ordination and Co-operation.
 3. Is handled by the Administration.
4. Periodical check, Quality control.
5. Believes in Mental, physical, emotional and moral
wellbeing of the employee
6. Welfare of not only employees but his family.
7. Respects values, beliefs and tradition
8. The cost of the welfare service should be calculable and
it’s financing established on a sound basis
9. The welfare service should satisfy real needs of the
worker.

SCOPE
1. Labour welfare generally covers these main aspects:
2. Working Environment
3. Health facilities
4. General welfare programs
5. Economic welfare programs
6. Labour welfare programs

Working Environment of labor welfare

1. Favourable working environment enhances efficiency of
workers and should include:
 2. Proper ventilation, lighting, temperature, cleanliness,
seating arrangements etc.
3. Proper safety measures for workers should be there.
4. Sufficient urinals, lavatories and bathing facilities
should be provided and cleaned regularly.
5. Proper gardening and cleanliness of open spaces.
6. Pure drinking water should be provided.
7. Subsidized canteen services should be provided

HEALTH FACILITIES OF LABOR WELFARE

1. Health center should be provided within factory.
2. Ambulance service should be provided within factory in
case of any emergency.
3. Free medical checkup of workers and health and diet
Counseling of workers.
4. Availability of Doctor inside the factory for emergency.
5. Women and child welfare work.
6. Recreation facilities inside the organisation
7. Education and library services
General welfare programs
1. Housing facilities for workers
2. Family case work and counseling

Economic welfare programs

1. Subsidized consumer goods including grains,
vegetables, milk, oil and other daily requirements.
2. Banking services and credit facilities.

3. Health insurance schemes

4. Bonus and profit sharing schemes.
5. Tran Labour welfare programs
6. Factory council and labour arbitration council.
7. Social welfare department transportation services

Labor welfare facilities

1. Factory council and labor arbitration council.

2. Social welfare departments.

Propogation
The rapid growth of welfare programme can be traced to
such sources as:
1. A changed employee attitude
2. Labour employer demands
3. Statutory requirements
4. Competition that forces other employers to match
benefits
5. To attract and keep Labour.
6. High company income tax rates have also stimulated
the
offering of services.

MEANING OF LABOUR WELFARE IN MORE CLEAR MANNER

Labour Welfare has been defined in various ways but

unfortunately no single definition has
received universal acceptance. The Oxford Dictionary
defines labour welfare as “efforts to make life
worth living for workmen". The encylopedia of social
sciences defines labour welfare as 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 customs of the
industry and the conditions of the market. Further J. Tadd
defined labour welfare as “Anything for the
comfort and improvement, intellectual and social, of the
employees over and above the wages paid,
which is not a necessity of the industry".At the ILO session
(SEA) held at New Delhi, in 1947, Worker’s
welfare was understood, “as meaning of such services,
facilities and amenities, which may be
established in, or in the vicinity of the undertaking to
unable persons employed there in surroundings
and to provide them with amenities conductive to good
health and good morale”. The Royal commission
on labour (1931) understood labour welfare “as one which
is necessarily elastic, differing from country
to country, the degree of industrialisation and the level of
educational development”.
The Rege Committee, in its report submitted to the
Government of India in 1946, said, “We
prefer to include under welfare activities anything done
for intellectual, physical, moral and economic
development of workers, whether by employer,
government or other agencies, over and above provided
by law or under some contract and what is naturally
expected as a part of the contract for service”,
The committee on labour welfare set up by the
government of India in 1969, in its report defined labour
welfare to” include such services, facilities and amenities
as adequate canteens, rest and recreation.

facilities, sanitary and medical facilities, arrangements for

travel to and from place of work and for the
accommodation and such other services amenties and
facilities including social security measures
as contribute to improve the conditions under which
workers are employed”.
From all these definitions, It is apparent that none is
complete or comprehensive. There is no
precise, definite outline or demarcation in this subject.
However, what is definite is that labour welfare
promotes the well-being of workers in a variety of ways.

. DEFINITION AND CONCEPT OF LABOUR WELFARE

The term Welfare is derived from the French phrase
Welfare which means to FareWell. The
chamber’s dictionary defines the term welfare as “a state
characterised by happiness, Well- being or
prosperity”. Thus, in its broader connotation, the term
welfare refers to the state of living of an individual
or a group in a desirable relationship with total
environment -ecological, economic and social. However,
the environment not only shows perceptible differences
from place to place but also undergoes
metamorphoses over time. Similarly, the “desirable
relationship” may also vary among individuals
and groups as well over time. These variations impart
dynamism to the concept of welfare. It is
because of this dynamism that the concept of welfare
defied a precise definition and renders its
measurement different. To begin with, let us briefly
discuss the main concepts or, rather the general
meaningful ideas which have been evolved about it sofar.

Social Concept of Welfare While Welfare is thus based on

the well-being of the total man, it is also a three
dimensional concept implying the welfare of the family
and the community, in addition to that of the man himself.
A man is a member of his family. He derives his mental
nourishment, his moral sentiments and emotional content
from his family. All his activities are conditioned by and
centered in his family. As the family, so the person, at least
in his earlier days. A family is not an isolated unit. It is
related to other families and to the neighbourhood. The
community is the legitimate, natural and intimate setting
in which the family lives and has its being. A family cannot
be happy if the community is miserable and if the
community does not, or cannot, provide conditions for
desirable’ states of existence for the family. Welfare of
families and of individuals is determined by the resources
of the community of which the former are parts. If the
community should be described as faring well, it should
enable its constituent parts to attain and maintain
desirable conditions of existence.

SCOPE OF LABOUR WELFARE

It is some what difficult to accurately lay down the scope
of labour welfare work, especially because of the fact that
labour is composed of dynamic individuals with compled
needs. Hence it can be interpreted in different ways by
different countries, with varying stages of economic
development, political outlook and social
philosophy.Accordingly, the labour welfare work can be
divided into statutory and on-statutory or voluntary or
into intra-mural welfare work or extra-mural welfare work.
Statotory welfare measures in industry may stem for the
direct concern for efficiency and productivity. But, to the
extent these measures are employee-oriented, they could
be considered to fall within the scope of labour welfare.
Such measures consist of those provisions of welfare work
which depend for their implementation on the coersive
power of the government. That is, through the law. Every
country is increasing gradually its statutory control over
labour welfare. Non-statutory welfare measures include all
those activities which employers and unions undertake on
a voluntary basis. ILO classified the welfare measures into
intra-mural and extra-mural. Intra-mural are those welfare
amenities which are provided within the precints of the
establishment such as latrines and urinals, washing and
bathing facilities, creches, rest shelters, canteens, drinking
water, health services safety measures, uniform and
protective clothing, shift allowance, etc. Extra-mural are
those welfare amenities which are provided outside the
establishment like maternity benefit, social insurance
measures including sports, cultural activities, library and
reading room, holiday homes, leave travel facilities,
consumer cooperative stores, fair price shops, vocational
training for the dependents of workers transport to and
from the place of work, etc
According to Valid, there are certain requirements which
labour welfare should meet. It should enable workers to
live a riche and more satisfactory life; contribute to the
productivity of labour and efficiency of the enterprise, be
in time and harmony with similar services obtaining in the
neighbourhood community, where the enterprise is
situated, etc. Thus, labour welfare is very comprehensive
and embrances a multitude of activities of employers,
state, trade unions and other agencies to help workers and
their families in the context of their industrial life.

Objectives of Labour Welfare

1. To increase the standard of living of the. Working class

The labourer is more prone to exploitation from the
capitalists if there is no standardized way of looking
after their welfare.

2. To make the management feel the employees are

satisfied about the work and working conditions.

3. To reduce the labour problems in the orgnisaton:

There are various problems affecting the workers,
problems like absenteeism, turnover ratio, indebtedness,
alcoholism, etc., which make the labourer further weak
both physically and psychologically. Labour Welfare
looks forward to helping the labourer to overcome
these problems.
4. To recognize human values Every person has his own
personality and needs to be recognized and developed.
It is in the hands of the management to shape them and
help them grow. The management employs various
methods to recognize each one's worth as an individual
and as an asset to the organization.

5. Labour Welfare helps to foster a sense of responsibiJjty

in the industry: A person works both in a group and as
an individual. If the person is given

6. responsibility he will act better or else he will be only a

slave to the direction of the superiors and will not show
any initiative to prove his worth,

7. labour Welfare improves industrial relations and

reduces industrial disputes: Industrial dispute in any
industry is a sign of unsatisfied employees. Labour
Welfare measures act as a preventive tool to most of
these disputes
8. To retain the employees There should be fixed policies:
This calls in to prepare the policies, to conduct different
training programmes, to have various motivational
schemes, to create interest in the job. The employees
who feel secure in an organisation, backed by fixed
 welfare policies have less chance of looking for a job
elsewhere.

9. To show up their positive mind in the work: Positive

mind refers to the development of one's attitudes. This
is to change the negative attitude into positive.

10. To influence over other employees: This means

Labour Welfare helps to change one's personality -
presentation skills, communication skills, inter-personal
relationships, etc. This is best achieved when their
morale is kept high by the different welfare schemes.

To increase the bargaining power of the employees:

Bargaining means to systematically extract something
from the opponent. The better bargaining power, the
better influence on the opponent. Labour welfare
measures like
formation of works committee, worker's participation,
Trade Union, etc., will surely help them to have better
bargaining power.

Need of Labour welfare

The employers need welfare activities to discharge their
social responsibility, raise the employees morale use the
work force more effectively and to reduce function with
workers and to avoid Welfare facilities besides removing
dissatisfaction help to develop loyalty in workers towards
the organization.

1. The employers need welfare activities to discharge their

social responsibility, raise the employees morale use the
work force more effectively and to reduce function with
workers and to avoid Welfare facilities besides removing
dissatisfaction help to develop loyalty in workers
towards the organization.
2. Welfare may help minimize social evils, such as
alcoholism, gambling, prostitution and drug addiction.
 3. To create harmonious environment in industry

Understanding the Labour Welfare Fund (LWF):

LWF is a program designed to ensure the social security
and well-being of employees. Its primary objective is to
enhance working conditions and elevate living
standards for eligible employees and their dependents
by providing medical care, housing, education,
nutritious food, and recreational facilities.

Benefits for Employees:

 Education: Provision of scholarships, stationeries, and
uniforms for workers' dependents.
 Medical: Access to medical facilities, including dental care,
monetary benefits for on-duty deaths, and funeral benefits.
 Food: Provision of nutritious food for employees and their
children.
 Transport: Financial assistance to purchase cycles and free
bus services for commuting mine workers.

 Enhanced Productivity: Incorporating a workplace where

employees develop in improved living and working
 conditions is key to fostering increased productivity and
efficiency.

 Better Retention: Implementation of a structured LWF

scheme demonstrates care and empathy, promoting higher
employee retention rates.

 Morale Boost: Access to skill development courses and

recreational activities positively impacts employees'
confidence, reflecting well on the company.

Conclusion:
The Labour Welfare Fund in India acts as a reliable pillar of
support for our hardworking employees and their families,
embodying a commitment to a holistic approach to social
security. Employers, when dedicated to adhering to LWF
regulations, not only meet their legal responsibilities but
also play a pivotal role in fostering a workplace
environment characterized by strength, empathy, and
understanding. As the Indian workforce evolves,
understanding and implementing Labour Welfare Fund
provisions become imperative for fostering a harmonious
employer-employee relationship.

WHY THERE IS NEED FOR LABOR WELFARE ?

Labour welfare has become essential because of the very
nature of the industrial system and the approaches to this
system differ from country to country. Since our country is
still going through the process of economic development,
it is of great consequence and somewhat easier to
counteract the baneful effects of the industrial revolution
that has adversely affected the people all over the world.
Article 41 – The state shall within the limits of its economic
capacity and development
make effective provision for securing the right to work, to
education and to public
assistance in cases of unemployment, old age, sickness
and disablement and in other
cases of underserved want.
Article 42 – The state shall make provision for securing just
and humane conditions of
work and for maternity relief.

Classification of Labour Welfare Activities

In the year 1959, government of India appointed a study
team to examine the entire range
Of labour welfare activities and to make
recommendations for their inclusion in the Third
Five Year plan. The team divided the entire range of labour
welfare activities into three
groups.
1. Welfare within the precincts of an establishment,
medical and crèches, canteens and
2. supply of drinking water.
3. Latrines and urinals
4. Washing and bathing facilities
Creches
5. Rest shelters and canteens
6. Arrangement for Drinking wate
7. Arrangement for the prevention of fatigue
8. Health services, including occupational safety
9. Administrative arrangements within a plant for
welfare
10. Uniforms and protective clothing and shift
allowance.

Maternity benefits =
Social insurance measures, including gratuity, pension,
provident fund, rehabilitation
1. Benevolent fund
2. Medical facilities including programmes for physical
fitness and efficiency, family
planning and child welfare
3. Education facilities, including adult education
4. Housing facilities
5. Recreation facilities, including sports, cultural
activities library and reading room
6. Holiday Homes and leave travel facilities
7. Workers cooperatives including consumers,
cooperatives stores, fair price shops and c ooperative
thrift with credit societies.
8. Vocational training for dependants of workers
Other programmes for welfare of women, youth and
children =
Transport facilities to and fro from work