Labour Welfare at Factories

ABSTRACT
The present study was under taken with such a task in mind and it aims at unearthing
the strengths and weakness of the welfare measures in integral coach factory Dehradun
that is prevalent in the organization that sponsored this project work.
Since organizations exist to achieve goals. The degree of success that individual
Labours have in reaching their individuals goals is important in determining organizational
effectiveness. The assessment of how successful Labours have been at meeting their
individual goals, therefore, becomes a critical part of Human Resource Management. This
leads us to the topic of Labours Welfare measures.
This project aims at knowing Welfare System. In this project the work atmosphere
and the welfare measures provided by the organization has studied.
It also aims at finding out the Labours relationship with the management.
This survey is done within the organization. The sample size is 110. The data was
collected by administering questionnaire and by adopting direct personal contact method.
The persons met are all Labours of the concern.
Collections of data were analyzed and tabulated in a sequential manner and the
interpretations are given along with the tabulation. The conclusion and suggestions are also
given in this report for the improvement of this system in the organization.
CONTENTS
SNO. INDEX
1 INTRODUCTION OF
LABOUR WELFARE
2 NEED OF THE STUDY
3 SCOPE OF THE STUDY
4 IMPORTANCE OF THE
STUDY
5 OBJECTIVE
6 REVIEW OF LITERATURE
7 RESEARCH
METHODOLOGY
8 LASBOUR ABSENTEEISM, LABOUR

TURNOVER AND LABOUR
PRODUCTIVITY
9 CASES IN LABOUR LAW
10 SUGGESTION
11 BIBLIOGRAPHY
INTRODUCTION LABOUR WELFARE

Welfare is comfortable living and working conditions. Labour welfare means the efforts to
make life worth living for workman.
Welfare is comfortable living and working conditions. People are the most important
asset of an organization, and the accounting profession has to assess and record the value
and cost of people of an organization. Once this is accepted, the need for measuring the
value for recording it in the books of accounts arises. The value of human assets can be
increased substantially by making investment in their training and welfare activities in the
same way as the value of repairs/ overhauling, etc.
While the cost on training, development, etc., can be recorded separately and to be within
the eventual, the expenditure on welfare activities can be added to the investment and the
returns judged. Unlike other assets which have depreciation value as years passes by, value
of human assets appreciates with passing years. The value can depreciate by aging process
which is generally hastened up by worries, unhealthy conditions, etc. once this process is
slowed down, or at least if the Labour is made to feel young in spirits the value of this
asset appreciates considerably.
Any investment constitutes the assets of a company and therefore, any investment for
welfare of labor would constitute an extra investment in an asset. Industrial progress
depends on a satisfied labor force and the importance of labor welfare measures was
stressed as early as1931, when the Royal Commission on labor stated the benefits which go
under this nomenclature, are of great importance to the worker and which he is unable to
secure by himself. The schemes of labor welfare may be regarded as a wise investment
which should and usually does bring a profitable return in the form of greater efficiency.
The basic features of labor welfare measures are as follows:
1. Labor welfare includes various facilities, services and amenities provided to workers
for improving their health, efficiency, economic betterment and social status.
2. Welfare measures are in addition to regular wages and other economic benefits
available to workers due to legal provisions and collective bargaining
3. Labor welfare schemes are flexible and ever-changing. New welfare measures are
added to the existing ones from time to time.
4. Welfare measures may be introduced by the employers, government, Labours or by
any social or charitable agency.
5. The purpose of labor welfare is to bring about the development of the whole
personality of the workers to make a better workforce.
The very logic behind providing welfare schemes is to create efficient, healthy, loyal and
satisfied labor force for the organization. The purpose of providing such facilities is to make
their work life better and also to raise their standard of living. The important benefits of
welfare measures can be summarized as follows:
They provide better physical and mental health to workers and thus promote a
healthy work environment
Facilities like housing schemes, medical benefits, and education and recreation
facilities for workers families help in raising their standards of living. This makes
workers to pay more attention towards work and thus increases their productivity.
Employers get stable labor force by providing welfare facilities. Workers take active
interest in their jobs and work with a feeling of involvement and participation.
Labour welfare measures increase the productivity of organization and promote

healthy industrial relations thereby maintaining industrial peace.
The social evils prevalent among the labors such as substance abuse, etc are reduced
to a greater extent by the welfare policies.
The concept of labor welfare is flexible and elastic and differs widely with times, regions,
industry, country, social values and customs, degree of industrialization, the general socio-
economic development of the people and the political ideologies prevailing at particular
moments. It is also according to the age group, socio-cultural background, marital status,
economic status and educational level of the workers in various industries.
NEED OF THE STUDY
To know about the Constitutional provisions in Integral Coach factory .
To find whether Labor welfare helps in providing good industrial relations .
To know about the Labours satisfaction towards welfare measures.
To find out the facilities entitled by Integral Coach Factory

IMPORTANCE OF THE STUDY
It helps in improving recruitment.
Employers get stable labor force by providing welfare facilities. Workers take active
interest in their jobs and work with a feeling of involvement and participation.
It improves moral & loyalty of workers.
It reduces labor turnover & absenteeism.
It helps in increasing productivity & efficiency by improving physical & mental

health.
It helps in improving industrial relation & industrial peace.

SCOPE OF THE STUDY
The present study has been undertaken to study find out effectiveness of Labour
welfare measures in Integral Coach Factory.
To find out the practical difficulties involved in welfare measures that can be
evaluated through this study.
The study can be used to bring out the solution for the problem faced by the Labours
availing the welfare measures.
Through the study, company would be able to know the satisfaction level of Labour
on welfare measures.
OBJECTIVES OF THE STUDY
PRIMARY OBJECTIVE:
To study the Labours welfare measures in different countries .
SECONDARY OBJECTIVES:
To identify the various welfare measures provided to the Labours.
To know their satisfaction towards the welfare measures
To understand how welfare measures improve the motivation of the
Labours.
To find out Labours preference regarding welfare measures which they like to have
in future.
REVIEW OF LITERATURE
INTRODUCTION
Review of literature is an important aspect in any research study as it gives a very deep
understanding of the research problem and a quite clear orientation to the researchers.
Investigators get a clear sense of focus by finding out what has already been done and the
gaps in the research studies. It also helps in shaping and guiding the research in a fruitful
direction by offering deep insights and different perspectives on the research topic. In this
chapter, an attempt has been made to review and make re-appraisal of the research work
done by different scholars on labour welfare in India. The review of literature is classified
into various sections that are as follow:
Historical upbringing of labour welfare which is divided into two phases:
Pre-Independence period
Post-Independence
period Studies on labour
welfare.
Studies on major personnel aspects like labour absenteeism, labour turnover and
labour productivity in relation to labour welfare.
Studies on Cotton Textile Industry.

HISTORICAL UPBRINGING OF LABOUR WELFARE
The philanthropic ideology of early thinkers and philosophers such as Comte, John Stuart
Mill, Martineau and George Eliot gave birth to the concept of labour welfare who were
shocked by the working conditions of workers in the factories during the first phase of
Industrial Revolution. Robert Owen who himself was an employer took initiatives for
labour welfare by regulating hazardous working conditions and by advocating an eight
hour working day for workers (Punekar et al., 2012, p.41). Even during the period of
shutdown of his mill, he paid full wages to the workers. Robert Owen was the first
employer to abolish the system of imposing penalties on the defaulting workers. He
desired for a follow up of his ideas and thoughts by other employers as well (Venugopal,
2013, p.141).
LABOUR WELFARE IN INDIA DURING
PRE-INDEPENDENCE PERIOD
In India, labour welfare originated in 1850 by the passing of first welfare oriented
Apprentice Act. The act was passed with the aim of imparting trade skills to poor and
orphaned children by apprenticing them to craftsmen. In 1853, the Fatal Accidents Act
was passed to give compensation to the families of workmen who lost their lives as a
result of any actionable wrong. Then came the Merchant Shipping Act of 1859, which
regulated the employment of seamen and provided for their health, accommodation and
protection (Sarma, 2011, p.14). But all these legislations were mainly related with the
regulation of employment rather than improving the working conditions of labourers.
The first cotton mill started in India in 1850. The miserable condition of labourers in
these mills led to the enactment of first Factories Act, 1881. This act fixed the minimum
and maximum age of children in factories at 7 and 12 respectively and their hours of work
to 9 per day. But this act did not pay attention towards the female labourers and the
working conditions of labourers. Hence, the Factories Act (Amendment) Act was passed
in 1891. It applied to all factories employing 50 persons or more. The lower and upper
age limits for children were raised to 9 and 14 respectively. Employment of women
between 7.00 p.m. and 5.00 a.m. was prohibited and were allowed to work for 11 hours a
day with one and a half hours rest. Provisions relating to better ventilation, cleanliness
and for preventing over-crowding in factories were also made. Again on the
recommendations of Factory Commission set up by the Government of India, seasonal
factories were covered under the Factories Act of 1911. Group efforts made by The
Amalgamated Society of Railway Servants of India and Burma, The Printers Union in
Calcutta, The Postal Union in Bombay resulted in introduction of insurance schemes,
educational stipends and funeral expenses (Sarma, 2011, p.15).
The number of factories were increased during the World War I (1914-1918), but the
condition of workers did not improve with the rising prices and profits. Jawaharlal Nehru
in his book Discovery of India stated that:
Industry developed during the War and produced enormous dividends, 100
percent to 200 per cent, from the jute mills of Bengal and the cotton mills of
Bombay, Ahmedabad, and elsewhere. Some of these dividends flowed to the

owners of foreign capital in Dundee and London, some went to swell the riches of
Indian millionaires; and yet the workers who had created these dividends lived at
an incredibly low level of existence in 'filthy, disease-ridden hovels,' with no
window or chimney, no light or water supply, no sanitary arrangements. (Punekar
et al., 2012, p.156)
International Labour Organisation (ILO) was set up in 1919 to improve the welfare of
workers and India became its founder member. In its first meeting in Washington USA,
the ILO suggested some changes in labour welfare schemes in India. In 1922,
Government of India enacted the Factories Act which applied to all the factories
employing more than 20 persons. It was also provided that men or women shall not work
for more than 60 hours a week and not more than 11 hours a day. Workers were entitled
to one hour of rest after 6 hours of work or two intervals of half hour each (Punekar et al.,
2012, p.48). This act was again amended in 1934 and welfare measures were introduced
with the provisions of rest sheds and crches by big factories (Sarma, 2011, p.16).
Workmens Compensation Act was passed in 1923 to give compensation to the families
in case of any mis-happening during the course of employment.
Labour Investigation Committee (Rege Committee) set up in 1944 investigated the
different areas in labour welfare such as housing policy, rest and recreation, crches and
canteens, washing and bathing facilities, educational facilities and emphasized the need
for strengthening the enforcement machinery for effective implementation of various
laws. Again during Second World War (1936-1945) with increase in number of industries,
the need for new legislations for the welfare of workers was felt and government took
initiatives for providing various welfare facilities to the workers (Sarma, 2011, p.16).
Hence, it can be said that the seed of workers welfare was sown during Pre-
Independence period. Employers and government started paying attention towards the
welfare of workers by passing some welfare oriented laws. The Factories Act with the
objective of improving the health and welfare of workers was first passed in 1881. This
act was further amended to increase the scope of welfare provisions. But the condition of
workers did not improve much due to the lack of proper implementation of welfare
legislations. More efforts were needed on the part of employers to improve the working
conditions of workers, especially the female workers.
LABOUR WELFARE IN INDIA
DURING POST INDEPENDENCE
PERIOD
The labour welfare movement gained new dimensions after Independence. Soon after
Independence, The Central Government adopted Industrial Truce Resolution with the
objectives to improve Employer-Labour Relations and to solve problems that hinder
production (Monappa, 2002, p.333). The first step to achieve these objectives and to
improve the conditions of workers, was the enactment of the Factories Act, 1948 which
was drafted on the recommendations of Rege Committee. This act contains many
provisions regarding health, safety, welfare, employment of young persons and children,
hours of work, holidays and leaves with wages (Sarma, 2011, p.17).
The planning Commission was set up in 1950 and workers welfare was given due
attention in all five years plans and various statutory legislations were enacted to protect
the interest of labourers.
In the First Five Year Plan (19511956) considerable attention was paid towards the
welfare of the working classes. It concentrated on aspects like industrial relations, wages,
working conditions, employment and training and productivity of workers. During this
period various statutory laws like the Plantations Labour Act, 1951, the Mines Act, 1952,
the Employees Provident Funds Act, 1952 were enacted. A subsidized housing scheme
for labour was formulated and implemented in 1952. The State Governments passed
various laws on housing for Industrial labour, i.e., the Bombay Housing Board Act, 1948,
1
the Hyderabad Labour Housing Act, 1952, the Madhya Pradesh Board Act, 1950 etc.
The Second Five Year Plan (19561961) made further development in the field of labour
welfare. New laws were made to cover merchant seamen and motor transport workers and
women workers. The Employees State Insurance and the Employees Provident Fund
Schemes were made applicable to more workers. A comprehensive scheme known as
Dock Workers (safety, health and welfare) Scheme was drawn up in 1961. Plantations
labourers were given the loan facility for construction of their houses by passing a new
1
Report of Planning Commission, Government of India. First Five Year Plan (1951-1956). Chapter 34.
Retrieved from http://planningcommission.nic.in/plans/planrel/fiveyr/default.html
Plantation Labour Housing Scheme in 1956. Various State Governments opened welfare
2
centres and passed number of legislations in the field of industrial housing.
The Third Five Year Plan (1961-1966) emphasized the need for more effective
implementation of various statutory welfare provisions. The plan also recommended
setting up of co-operative credit societies and consumers stores for industrial workers,
and emphasized the role of trade unions and voluntary organizations in administering
such co-operatives. Some of the legislative measures during this period include the
Maternity Benefits Act, 1961, the Apprentices Act, 1961, the Iron-Ore Mines Labour
Welfare Cess Act, 1961 and the Payment of Bonus Act, 1965. During this period, co-
operative housing societies also began to make their mark, even though their progress was
3
gradual.
The Fourth Five Year Plan (19691974) witnessed the expansion of the Employees State
Insurance Act to cover medical facilities to the families of insured persons as well as
employees of shops and commercial establishments in some centres. To protect the
interests of Contract labour, the Contract Labour Regulation and Abolition Act, 1970 was
passed. Through this Act, contractors were made to undertake welfare activities for their
workers. The Payment of Gratuity Act, 1972 and the Employees Family Pension
4
Scheme, 1971 were enacted during the Fourth Five Year Plan.
The Fifth Five Year Plan (19741979) made provisions for labour welfare in various
areas to promote industrial health and safety. The Central Staff Training and Research
Institute, The Foreman Training Institute, and The Central Training Institutes for
2
Report of Planning Commission, Government of India. Second Five Year Plan(1961-1966). Chapter 27.
3
Report of Planning Commission, Government of India. Third Five Year Plan (1969-1974).Chapter 15.
4
Report of Planning Commission, Government of India. Fourth Five Year Plan(1969-1974). Chapter 22.
Instructors were set up for imparting training to workers. The expansion of the
Apprenticeship Training Programme and initiation of Vocational Training in Women s
Occupations was another step taken during the Fifth Five Year Plan to promote labour
5
welfare.
In The Sixth Five Year Plan (19801985) stress was given on effective implementation of
the measures passed in prior legislative enactments. The emphasis was on extending
coverage of the Employees State Insurance Scheme, the Employees Provident Fund and
the Family Pension Scheme so that more workers can be given the benefits provided
under these schemes. Special programmes were also undertaken by State Governments
for the benefit of agricultural labour, artisans, handloom weavers, fishermen and leather
6
workers.
During The Seventh Five Year Plan (19851989) major stress was on labour welfare,
improvement in working conditions of unorganized labour. During this period, education
programmes and training facilities were initiated for the upliftment of women workers.
Thus, during this period the major stress was on upgrading the skills of workers and to
7
educate them and make them aware of various legislative provisions available for them.
In The Eighth Five Year Plan (19921997) government emphasized on improving the
quality of labour, productivity, skills and working conditions and provision of welfare and
social security measures, especially for those working in the unorganized sector.
Industrial and mines safety, skill formation and development, workers' education,
5
Report of Planning Commission, Government of India. Fifth Five Year Plan (1974-1979). Chapter
5.Retrieved from http://planningcommission.nic.in/plans/planrel/fiveyr/5th/5th_fyp.pdf
6
Report of Planning Commission, Government of India. Sixth Five Year Plan(1980-1985).Chapter 24.
7
Report of Planning Commission, Government of India. Seventh Five Year Plan (1985-1989). Vol.
2,Chapter 5. Retrieved from http://planningcommission.nic.in/plans/planrel/fiveyr/default.html
promotion of self-employment, rehabilitation of bonded labour, women and child labour,
promotion of a healthy industrial relations and encouragement of workers' participation in
8
management were the prime working areas in this plan.
In The Ninth Five Year Plan (19972002) the major stress was given on the improvement
of social security measures and labour productivity. Apart from this, resources were
directed towards skill formation, exchange of information on new job opportunities,
monitoring of working conditions, creation of industrial harmony for healthy industrial
relations, and insurance against illness, injury and unemployment for workers and their
families. The Ninth Five Year Plan emphasized the need for proper implementation of the
9
existing labour laws.
The Tenth Five Year Plan (20022007) emphasized on improving the working
conditions, better industrial relations, proper implementation of labour legislations, and
launching the welfare activities for benefit of all industrial workers and their families.
Vocational training was given special attention in this plan to increase the skilled labour
force. Efforts were made to cover the unorganized labour force under the Employees
Provident Funds Schemes and Employees Insurance Schemes. The major objective of
this plan was not only to provide monetary benefits (such as minimum wages, overtime,
bonuses, etc.) to workers, but also to ensure their proper health and safety during the
10
course of job.
The major focus of The Eleventh Five Year Plan (20072012) was on unemployment and
under employment, the promotion of regular wage employment opportunities and
8
Report of Planning Commission, Government of India. Eighth Five Year Plan (1992-1997).Vol.
9
Report of Planning Commission, Government of India. Ninth Five Year Plan (1997-2002).Vol. 2,Chapter
3. Retrieved from http://planningcommission.nic.in/plans/planrel/fiveyr/default.html

10
Report of Planning Commission, Government of India. Tenth Five Year Plan(2002 2007). Vol. 2,Chapter
3. Retrieved from http://planningcommission.nic.in/plans/planrel/fiveyr/default.html
addressing the continuing unmet needs of workers employed in unorganized sector
11
enterprises.
The Twelfth Five Year Plan (2012-2017) stresses the demand aligned skill development
and significantly stepping up growth in employment in manufacturing sector so that under
employed labour force can be given jobs to better paid productive manufacturing and
service sector. In this plan emphasis is given to provide better working conditions for
women workers to increase their participation rates. Due attention is given towards the
coverage of pension, medical insurance and other social security measures to meet the
12
aspirations of the working class.
It can be said that considerable attention has been paid towards labour welfare by the
Government of India in all its Five Year Plans. Enactment of various labour welfare
statutes and efforts towards their proper implementation signify that Government as well
as industrialists have recognized the importance of labour and labour welfare to
increase productivity and for overall development of the economy.
STUDIES ON LABOUR WELFARE

Labour welfare facilities provided by the organisation make the workers satisfied with
their jobs and with life. These increase the morale and productivity of workers. In this
section an attempt has been made to analyze the various studies which have explored the
labour welfare facilities provided by organisations and their influence on workers lives.
Salaria, P. & Salaria, S. (2013), in their article titled: Employee Welfare Measures in
Auto Sector, analysed the existing employee welfare measures and satisfaction leverkers
with welfare measures in auto sector companies located in National Capital
11
Report of Planning Commission, Government of India. Eleventh Five Year Plan(20072012). Vol.
Region(India). Based on random sampling technique respondents were selected from four
auto sector companies, i.e., New Holland Fiat (India) Pvt. Ltd., HONDA SIEL, Yamaha,
and JCB. Percentage method was used to analyze the data and it was concluded that
employees in auto sector were satisfied with the intramural welfare facilities but few were
dissatisfied with the extra mural welfare measures. Perception of the employees on the
total welfare measures was satisfied and very few employees were dissatisfied.
Bhati & Kumar (2013), in their study on Provision of Welfare Under Factories Act &
Its Impact on Employee Satisfaction, reviewed the welfare provisions provided to
employees by Jyoti CNC, Rajoo Engineering, Steel Cast, Atul Auto & Amul industries in
Gujarat. They selected 50 employees each from all the four units for the study. They also
analysed whether any relation exists between welfare provisions & employee satisfaction
or not. By applying correlation and one way ANOVA statistical techniques, they
concluded that different welfare provisions provided to employees under the Factories
Act, 1948 were having positive relation with the employee satisfaction. They suggested
that the provisions provided to employees in each industry should be made more
beneficial for their welfare. For this, each industry should appoint welfare officer who can
take better care of the welfare facilities for the employees in an industry.
Srinivas (2013), in his article titled: A Study on Employee Welfare Facilities Adopted at
Bosch Limited, Bangalore, made a detailed analyses of various welfare facilities
provided by Bosch Limited, Bangalore. He studied the satisfaction level with various
welfare measures among employees of the company. For the study, sample size of 100
employees of the Bosch Limited, Bangalore was selected using convenience sampling
technique. It was found that most of the employees were aware about various statutory
and non-statutory employee welfare facilities like medical, canteen, safety measures
provided by the company and most of the employees were satisfied with these welfare
facilities provided by the company. He suggested that recreation facility should be
provided to the workers to boost their morale and to bring little diversion from their
monotonous routine. Annual health checkups, employee counseling, health camps,
hospitalization facilities should be improved.
Prabhakar (2013), in his study on Employees Satisfaction & Welfare Measures-A Case
Study with Special Reference to Don Bosco College of Arts & Science, Sogathur,
Dharmapuri, analysed the employees welfare strategies in Don Bosco College and
studied the awareness about the concept of Employee Welfare among the employees.
The information was collected from 80 employees of Don Bosco College. By applying
statistical tools like Simple Percentage Analysis, ANOVA, Correlation and Regression he
found that the employees were satisfied with intramural facilities. In case of extramural
and non- statutory facilities further improvement was needed. He suggested that proper
functioning of existing welfare schemes is need of the hour to motivate the staff. He
further suggested that management should hold sessions with staff to improve welfare
schemes. Overall improvement of welfare activities will help to raise the economic status
of the employees and their standard of living. Introduction of better increment schemes
will help to keep their morale high.
A study by Sabarinathan & Kavibharathi (2013), titled: A Study on Labour Welfare
Measures in The Erode District Co-Operative Milk Producers Union Limited, examined
the level of satisfaction among labourers with welfare measures at Erode District Co-
operative Milk Producer Union Limited and assessed the working environment of
employees in the organization. For the purpose of study, a sample size of 50 employees in
Erode District Co-Operative Milk Producers Union Limited was selected and data was
analysed by applying Percentage and Chi-Square statistical tools. From the given study
they found that most of the respondents were satisfied with the provisions provided by the
organisation. The organization showed the great deal of transparency in decision making
and shared information across all levels. The management believed in having a
participative approach in decision making. The researchers suggested that the
management should convert satisfactory response into highly satisfactory. Most of the
employees desired to have canteen facility from the company.
Samaranthakani & Srinivasan (2013), in their study titled: Evaluating Labour Welfare
Legislation Initiated by Perambalur Sugar Mills Ltd., Eraiyar, Perambalur, investigated
the adequacy of labour welfare legislation in the industry to make the industrial climate
progressive. They indicated that the overall labour welfare and statutory measures were
fairly satisfactory. The employees were bothered about recreational facilities and hence
these can be improved significantly. They suggested that equitable relations between
efforts and reward can increase the level of job satisfaction among employees. Job
rotations and internal transfers should be treated as good remedies for fatigue and work
economy.
Gupta (2013), in his research study titled: Labour Welfare and Social Security in
Globalizing Economy, emphasized that welfare of labour is an important aspect for the
progress of country. Since independence many legislations have been passed to improve
the well-being of the workers but unfortunately the employers have not implemented
these in their true spirit. The researcher remarked that it is high time that the industrialists
must implement the welfare provisions to achieve the goal of democratic country. He
stated that workers are the active partners in the industrial undertakings and without their
co-operation and good work, discipline, integrity and character, the industry will not be
able to produce effective results or profits. No matter how much efficient the machine
touch in any industry may be, if the human element refuses to co-operate, the industry
will fail to run. Therefore, the profit of the industry must be shared between employers
and workers, the workers being the producers of wealth. The study concluded that
workers should be given their due share to increase their productivity and for overall
development of the economy.
Kumar et. al. (2012), in their article titled: A Study on Labour Welfare Measures in
Salem Steel Plant, Tamilnadu, explored the various labour welfare provisions provided
by the Salem Steel Plant to its employees and the attitude of workers towards various
statutory and non-statutory welfare facilities provided by organizations. The study also
analyzed the impact of labour welfare measures on the productivity of Salem Steel Plant.
150 employees of Salem Steel Plant were selected for the study using simple random
sampling technique. The study concluded that majority of the employees were satisfied
with the welfare facilities provided by the Salem Steel Plant. Very few employees, i.e.,
about 8% were dissatisfied with medical, canteen and transport facilities. The study
recommended improvement in the functioning of cooperative society in the township
premises.
A study by Nyamwamu & Bosibori et.al. (2012), in their article titled: Role of Employee
Welfare Services on Performance of the National Police Service in Kenya: A Case of
KISII Central District, analysed the impact of employee welfare services on the
performance of National Police Services in KISII central district. The study was based on
the functional theory of labour welfare which suggests that welfare can be used to secure,
preserve and develop efficiency and productivity of labour. Stratified sampling was used
to select a sample size of 115 respondents in KISII central district. Statistical tools such as
Frequencies, Weighted Averages and Percentages were used to analyze data. The study
established that welfare services were not properly implemented and hence affected the
performance of the National Police Service. The study suggested that these welfare
services should be implemented properly. It further recommended for similar studied to
be conducted in National Police Service in other districts in Kenya to compare the
findings.
Satyanarayana & Reddy (2012), in their paper titled: Labour Welfare Measures in
Cement Industry in India (A Case of KCP Limited, Cement Division, Macherla, Andhra
Pradesh), studied the level of satisfaction of employees with labour welfare measures in
KCP Limited. For the purpose of the study, convenience random sampling method was
used to select 90 employees of KCP Limited covering almost all the departments. The
study revealed that majority of employees were satisfied with welfare measures provided
by organization. However, few were not satisfied with welfare measures provided by the
organization. Therefore, need for improvements in the existing welfare measures was
suggested to enrich the employees standard of living and their satisfaction level.
Iqbal (2011), in her study titled: Labour Welfare in Indian Railways Since 1991 identified
the labour welfare measures in Indian Railways since 1991 and analysed the level of
satisfaction for various labour welfare measures among the Indian Railways employees.
For this, a questionnaire was administered to the respondents comprising 500 employees
of the Indian Railways. It was found that only 42% of the railway staff were provided
with quarters. It was suggested the railway administration should encourage the
formation of Co-operative Housing Societies for employees wherever and whenever
possible in order to solve the problem of housing accommodation. Employees were not
satisfied with the medical facilities. It was further suggested that there is a need to
improve these facilities by way of having modern medical equipments and quality
medicines in hospitals of Indian Railways. Indian Railways must also participate in
securing the futures of employees through various social security schemes.
In a study by Bhavani & Selven (2011), on Labour Welfare Measures-Step Stone of
Healthy Industrial Relation, effort was made to see the impact of welfare measures on
industrial relations in the manufacturing sector in Tamilnadu. Primary data was collected
from 150 employees working in manufacturing sector in Tamilnadu using stratified
random sampling technique. They analyzed the different aspects of labour welfare
measures such as housing, medical, education, recreation, provident fund and concluded
that labour welfare measures had a positive impact on organizational performance and
increased the commitment level of employees towards organizations. They also
concluded that employees working in the large manufacturing companies were most
satisfied as compared to small manufacturing companies at Tamil Nadu.
Paul (2011), in his study on Labour Welfare Policy and Administration in Haryana,
concluded that labour administration in Haryana covers different aspects of labour
welfare in accordance with the provisions laid down in the Indian Constitution. He
suggested that effective implementation of labour enactment requires regular interaction
between officials and workers. It was found that, for officials of labour department,
Haryana training should be a continuous activity to keep pace with changing
environment. He emphasized the importance of strong political will along with dynamic
policy, planning, effective implementation, monitoring and evaluation for ensuring real
benefits to workers.
A study conducted by Venugopal, Bhaskar & Usha (2011), titled: Employee Welfare
Activities with respective Measures in Industrial Sector-A Study on Industrial Cluster at

Chittor District, analyzed employee welfare activities in the industrial cluster of Chittor
district and assessed its overall satisfaction level and facilities provided to the employees.
For the purpose of the study, a total of 120 employees were selected by the stratified
simple random sampling technique. To analyze the collected data, Chi-Square test and
Spearmans Rank Correlation were used. They found that employees in industrial cluster
at Chittor district were availing statutory welfare measures such as Workmens
Compensation, Employees State Insurance, Provident Fund and Maternity benefits.
Voluntary welfare measures such as recreational, medical, educational, housing,
transportation, sanitation, safety were also provided to the employees. The study
concluded that these industries need to provide some more welfare facilities to their
employees such as gratuity, pension so that they may retain the employees and their
quality of work life. The organizations were maintaining cordial relationship between
employees and management to achieve organization goals. The researchers suggested the
establishment of a problem solving committee for better solutions to welfare problems of
the employees. It was recommended that they should provide timely help to the
workforce when they are in trouble, i.e., providing conveyance to hospital when injured,
medicines etc.
Kanika (2011), in her study titled: An Analytical Study on Employees Welfare Schemes-A
Case Study of Panipat Thermal Plant assessed the welfare schemes adopted by Panipat
Thermal Plant. She also studied the hygiene and motivational factors relating to welfare
of employees. For the study 150 respondents of Panipat Thermal Plant were interviewed
with convenience sampling technique. The study revealed that the employees were
satisfied with the employee welfare schemes. Employees had good cordial relationship
with supervisors and the other workers. The grievances system was satisfactory in the
organization and employees also had a good supporting environment at their workplace.
She suggested that Panipat Thermal Plant should provide clean and well-furnished rest
rooms and a good drinking water facilities to its employees. It was again suggested that
Panipat Thermal Plant should provide neat and clean canteen facility with hygienic
environment and a good quality food to its employees.
Poongavanam (2011), studied welfare facility provided by a large well recognized public
enterprise in Pondicherry in his article titled: A Study on Labour Welfare Facility with
Reference to Anglo French Textile, Pondicherry, and found that welfare measures
ameliorate the physique, intelligence, motivation level and living standard of workers,
hence improving their efficiency in the organization.
Santhana Raj (2011), in his study titled: Industrial Relation and Labour Productivity
analysed the opinion of the workers with regard to health and welfare measures, provided
in pharmaceutical chemical companies in SIPCOT, Cuddalore and found the relationship
between welfare measures and job satisfaction. Primary data was collected from 350
respondents from Shasun Chemicals and Drugs Limited and Southern Petrochemical
Industries Corporation Limited using stratified simple random sampling technique. He
opined that labourers satisfaction with regard to pay, welfare, working atmosphere,
safety measures, etc. will increase productivity and will be an engine to national growth
and vice-versa. The job satisfaction is based on labour welfare and safety measures
provided by the employer. The wage structure too influences the attitude of the labour.
These factors influence not only an individual worker but also the team spirit which
influences the productivity.

Muthusamy (2011), in his research work titled: A Study on Social Security and Welfare
Schemes of the Unorganised Workers in Namakkal District analyzed the social security
needs of workers in unorganised sector. He examined that most of the workers were
highly dissatisfied with labour welfare schemes of hostel facility and maternity assistance.
He suggested that Central and State Governments must provide more support to the
labourers. Major security measures like Food Security, Nutritional Security, Health
Security, Housing Security, Employment Security, Income Security, Life and Accident
Security, Old age Security should be provided on priority basis to meet the needs of
unorganised workers in Tamil Nadu, particularly in Namakkal District.
Suyambulingam (2011), in his study titled: Labour Conditions of Marine Fishing
Workers in Thoothukudi District determined the impact of socio-demographic conditions
on the living status of fishing workers. The study was conducted on 600 fishing workers
households dwelling in 12 coastal villages of Thoothukudi district in Tamil Nadu. This
study revealed that most of the fishermen villages had poor water facilities. Most of the
houses were devoid of sanitary facilities. A majority of the respondents had not taken life
insurance policy. The study also revealed that the expenditure on food items,
entertainment, education, religious festivals and social functions were the major
constituents of the sample household expenditure. The researcher suggested that
government should implement policies and programmes which focus on the education,
health care, nutrition, and economic empowerment of women. Government should
provide life-saving devices like floating ring, life jacket and mask to all fishing workers
free of cost to take with them in the boat while fishing in order to avoid accidents in the
sea.
Prasad (2011), in his research titled: A Study on Welfare and Social Security Measures in
Singareni Collieries Company Limited (With Reference to Kothagudem Mines, Khammam
District, A.P) analysed the opinion of 328 (76 executive and 252 nonexecutive)
employees about the provision of welfare and social security benefits. He found that the
employees were provided statutory welfare facilities like first aid boxes, canteens,
provision of drinking water, crches etc. The company was also providing various non-
statutory welfare measures such as medical, educational and recreational facilities to its
executives and non-executives. It also provided housing facilities, consumer cooperative
stores, cooperative credit societies, and various other facilities to provide more benefits to
its employees. Singareni Collieries Company Limited, in order to satisfy the sports and
recreational needs of the employees, provided community halls and recreational clubs.
But absenteeism was very high due to various environmental factors such as the nature of
work, complex geo-mining conditions and severe heat conditions during summer. It was
found that majority of the employees were highly satisfied with the various statutory
welfare facilities provided by the company. But grievance handling procedure was not
given a green signal by most of the employees. Therefore, it was suggested that
management should redress the grievances of employees as early as possible.
Mini (2010), in her research study titled: Social Security of Labour in the New Indian
Economy analysed that in earlier times social security was a charity to the poor. The
principles of International Labour Organisation transformed it into a basic human right
with the aim to protect the workers from economic distress. In India, the laws of social
security have not achieved the desired results due to multiplicity of laws, shortage of
coverage, lack of policy, scarcity of implementation mechanism and above all, lack of
clarity in principles which need to be followed. She suggested that the labour welfare
legislations should be widened in its coverage. Workers investment in social insurance
schemes should be made compulsory so that they can get timely help in the hour of need.
Sabarirajan et.al. (2010), in their article, A Study on the Various Welfare Measures and
Their Impact on QWL Provided by the Textile Mills with Reference to Salem District,
Tamilnadu, India, analysed the impact of labour welfare measures on quality of work
life among the employees of textile mills. For the purpose of the study, 250 workers of 10
textile mills of Salem district were included in the sample. The statistical tools like Chi-
Square, ANOVA and Percentage Analysis were used to analyse the data and it was found
that most of the employees had positive attitude towards the various provisions of the
welfare measures. They suggested that modifications are required in the field of
recreational facilities, safety equipment, over time payments and promotions. Betterment
is required in the field of welfare officers, transfer policies, disciplinary and appeal rule
proceedings.
In a study conducted by Shah (2010), titled: Employee and Labour Welfare at the Tata
Group Companies, stated that employees are the foundation for the superstructure of a
corporate organisation. In this study, the Tata Group and its major companies had been
studied to describe their employee and labour welfare initiatives. The descriptive research
design was used for the study and data was collected through personal interviews with top
executives of the group and its major companies. In this study, he found that employees
expect appreciation for their honesty and commitment towards work. He concluded that
welfare activities affect the workers' attitude towards management and job satisfaction.
Employee and labour welfare activities increase their loyalty with the organization.
Labour welfare needs of the workers should be given due consideration by corporate
organizations for their upliftment and not for profit-making and goodwill-building alone.
Asher (2010), in his study on Pension Plans, Provident Fund Schemes and Retirement
Policies: Indias Social Security Reform Imperative, highlighted that effective social
security reforms are needed in areas of labour market and family policies. He further
emphasized the necessity for more empirical, and evidence based social security policies
especially in pension and health care. He suggested that proper planning is required for
introducing new security schemes and reforming existing ones.
Joseph, Injodey & Varghese (2009), in their study on Labour Welfare in India, stated
that labour welfare activities in India originated in 1837 and underwent notable changes
during the subsequent years. Various Government and Non-Government organisations
like National Government, State Government, Trade Unions, The Public Sector, Private
Sector and Non-Government organizations carry out the welfare work in India. At
present, provisions of house facilities, education, occupational safety and health,
prevention of child and bonded labour and enhancement of working women s welfare are
their prime objectives. Private sector organisations also provide these facilities to their
workers. The article pointed out that the structure of a welfare state rests on its social
security policies. Government, employers and trade unions have done a lot to promote the
betterment of workers conditions. However, a great deal still needs to be done.
De Souza (2009), in her study titled: Labour Welfare and Job Satisfaction: A
Comparative Study of Indian Pharmaceutical Companies and Multinational
Pharmaceutical Companies in Goa compared the labour welfare facilities provided by the
Indian and multinational pharmaceutical companies in Goa. She also studied the impact
of labour welfare facilities on the job satisfaction experienced by the employees working
in both type of organisations. For the purpose of this study, 210 respondents were selected
from Indian and multinational pharmaceutical companies in Goa. The study concluded
that multinational pharmaceutical companies provide better labour welfare facilities to
their employees than Indian pharmaceutical companies in Goa. Employees working in
multinational pharmaceutical companies were having high level of job satisfaction
compared to those working in Indian pharmaceutical companies in Goa. She also
highlighted that labour welfare has a significant positive correlation with job satisfaction.
Singh & Pathak (2009), in their article titled: A Study of Awareness of Labour Welfare
Measures in A.G.I.O. Paper and Industries Ltd. Dhekha, Bilaspur (C.G), studied the
level of awareness among workers engaged in A.G.I.O. Paper and Industries Ltd. Dhekha,
Bilaspur (C.G). They also analysed the implementation status of various provisions of the
Factories Act, 1948. 50 workers were selected for the study using a multistage sampling
method. They found that more than 60% workers were aware about statutory welfare
measures. Many statutory welfare facilities were provided and implemented while non-
statutory facilities were not provided to workers by employer.
Santhosh (2009), in his study titled: A Study on the Labour Market and Economic
Contribution of Labourers in United Arab Emirates with Special Reference to Non
Resident Keralites found that the grievance handling mechanism was very poor in
organisations. It was recommended that there must be active initiatives from government
and non- governmental agencies to tackle these issues and to take appropriate decisions
regarding those organisations whose grievance handling mechanisms were not prompt.
Kerala Government agencies should try to solve the grievances of the non-resident
Keralite workers if those particular grievances fall under the possible purview of the
Kerala Government. The study also revealed that awareness and satisfaction level of
Keralite workers in UAE was very low. Workers had to face many difficulties and
unhealthy practices in their job and at the place of their stay. Improvement is required for
their welfare and living conditions.
Sen (2008), in his study titled: Labour in the Beedi Rolling Industry: A Study of Madhya
Pradesh and Chhattisgarh examined the social welfare schemes and their impact on the
living conditions of the beedi workers. The focus of the study was to analyse the extent of
implementation of Beedi and Cigar Workers (Condition of Employment) Act, 1966. 200
beedi workers from Madhya Pradesh and Chhattisgarh were interviewed for collecting
primary data. The study revealed that although government has established free health
facilities for rural poor, yet these are not effectively utilized for a number of reasons. The
major obstacles are the location of the health centres, their timings (a long waiting
period), poor quality of care, non-availability of drugs and other essential supplies. As a
result, the people had to go in for expensive medical treatment which is often beyond
their means and had to borrow money at high rate of interest. He suggested that
government should establish more microfinance institutions in the beedi rollers
dominated areas. Concerted efforts may be made by trade unions to generate awareness
among workers and to educate them for availing various benefits provided to them. This
will raise their productivity, income and socio-economic status.
Mishra & Bhagat (2007), in their article titled: Principles for Successful Implementation
of Labour Welfare Activities from Policy Theory to Functional Theory, analysed that the
impact of labour welfare activities is on all the facets of human resources and not only on
the workforce. Labour welfare includes all such activities, which improve spiritual and
emotional quotient along with providing basic necessities of life. The goal of labour
welfare activities is to build a humane society. The concept of labour welfare is dynamic
and every country implement it in different perspective, i.e., from Police Theory to
Functional Theory. Accordingly principles for successful implementation of labour
welfare activities ranges from adequacy of wages to improve productivity along with
transformation of personality.
Bajpai (2007), in her study Social Perspectives of Labour Management Relations with
Special Reference to Industries in U.P. and M.P. found out how important working
conditions are for harmonious labour management relations. She also discussed the
factors affecting cordial labour management relationship and analysed the existing
industrial relations in the industries of U.P. and M.P. She made a comparative analysis
between Samsung Pvt. Ltd. (U.P.) and Ceat Tyres (M.P.) and concluded that the relations
between labour and management were not very good. The workers regard the
management as their exploiter. Management on the other hand believed that workers do
not bother about the production rather they are only concerned with their wages. The
working environment was satisfactory with regard to health measures in both the
organizations. The executives were satisfied with the welfare facilities but labour class
responded in the negative manner. She suggested that there is a need to develop
constructive attitude between management and labourers. Fair and time bound
promotional policies should be implemented. Active participation of all the employees at
all levels is necessary to have a better industrial atmosphere.
Upadhyaya (2006), in his study titled: Awareness and Implementation of Labour
Welfare Measures: A Case Study of Garment and Hosiery Industry of Noida, studied the
status of implementation of welfare provisions, under the Factories Act, 1948 in Garment
and Hosiery Industry of Noida. He also analysed the hindrances in the proper
implementation of various provisions of the Factories Act, 1948. Using stratified random
sampling technique, 150 respondents were selected for the present study. It was found
that the level of awareness among workers was low with regard to various provisions of
the act taken in the study. However, those having a higher educational level were having
higher percentage of awareness almost for all the facilities. Similarly those belonging to
trade unions and those employed in comparatively larger units were having higher level
of awareness. There was found to be a direct co-relation between the permanent status of
employment and percentage of the persons aware in this category as against those having
the casual or contractual nature of employment.

Singh (2006), in his study Impact of ILO on Indian Labour Movement, has highlighted
that the Indian labour has been a victim of exploitation from the very beginning of the
establishment of large scale industries. The workers had to face the problems of low
wages and longer hours of work. They had to live in miserable conditions. Working
conditions were in no way favorable for their health. The workers had to work ceaselessly
for pretty long hours of work for a handful of wages.
Srivastava (2004), in his study on Impact of Labour Welfare on Employees Attitude and
Job Satisfaction, felt that workers feel satisfied with their job if the management goes on
working for their welfare. A comparative study was conducted on workers in the private
and public sectors of Kanpur city. The researcher attempted to assess the quality of labour
welfare activities, measured the degree of job satisfaction of workers with regard to
labour welfare facilities in private and public sectors. He also evaluated the attitude of
workers towards management in both the sectors. Incidental sampling technique was used
to select sample of 100 workers each from private and public sectors of Kanpur city
constituting a total sample size of 200 workers. The study indicated that welfare activities
affect the workers' attitude towards management and job satisfaction in both the sectors.
Public sector is providing better facilities to the workers as compared to private sector
organizations.
John (2004), in his article titled: Social Security and Labour Welfare with Special
Reference to Construction Workers in Kerala, analysed that there exists a large gap
between the rich and the poor and also between unorganized and organized workers.
Unorganised workers account for 85% of working population in Kerala. In Kerala,
Building and other Construction Workers Welfare Fund (1990) was constituted
particularly for the welfare of construction workers. Various benefits like pension,
accident benefits, medical benefits, maternity benefits etc. are provided to the workers
under this fund. The study found that coverage of the act is very limited, which should be
extended further to cover more workers. It was further suggested that the more vulnerable
among the construction workers (such as the poor, the disabled, the chronically sick and
those without family support) may be identified and special welfare schemes may be
introduced for them on a priority basis.
Kumar (2003), in his study titled: Labour Welfare and Social Security: Awareness,
Utilization and Satisfaction of Labour Laws made a comparative analysis of the level of
awareness, the extent of implementation and utility of selected labour laws among the
workers in selected medium and large scale units equally drawn from public and private
sectors in Haryana. A representative sample of 12 units was selected from these industries
in Haryana. The study brought out the comparative differences in the awareness,
implementation and utility of labour laws between the private and public sectors. It was
found that workers in the public sectors were relatively more aware of the provisions of
the Factories Act than workers in the private sectors. In the case of safety provisions,
awareness was more in the large-scale units of the private sectors and medium scale units
of public sectors.
A study by Kumar and Yadav (2002), in their work titled: Satisfaction Level for Labour
Welfare Schemes in Sugar Factories in Gorakhpur Division, examined the labour
welfare schemes in the eight State Government and private sector sugar factories of the
Gorakhpur Division in Uttar Pradesh. Based on stratified random sampling, 240 workers
were interviewed from these sugar factories through a well-structured interview schedule.
The results revealed that the satisfaction level of workers with labour welfare schemes
was low in both the private and state sugar factories. Various schemes like housing
schemes, medical schemes, followed by education and recreation schemes were ranked
according to their importance. Workers satisfaction level with the provision of working
environment was higher in the private sector sugar factories than the State Government
sugar factories. Moreover, satisfaction of workers with social security schemes, housing,
medical schemes, education schemes, was higher in workers of private sector sugar
factories than the State Government sugar factories. The study concluded that workers in
State Government sugar factories have less satisfaction from welfare schemes as
compared to those in private sector sugar factories.
Purohit (2002), in his study titled: A Sociological Study of Job Satisfaction among
Executives and Labourers with Special Reference to Raymond Ltd., in Chhindwara, Distt.
(M.P.) found that cleanliness of office, working conditions, loan facilities, housing
facilities, canteen facilities, training programmes are important parameters of job
satisfaction. He stated that improvement in medical services, simplification of advance
facilities, welfare programmes help in increasing the better industrial atmosphere and
level of satisfaction with job.
Mukuka, Kalikiti and Musenge (2002), in a study on Social Security Systems in
Zambia, recognized that formal security system in Zambia is inadequate in terms of its
coverage and capacity and people rely on non-formal social security systems and
schemes. The study was conducted in Lusaka, Copperbelt, Eastern and Luapula provinces
to know the functioning of security system and schemes. The study found that most of the
people were availing benefits from non-formal social security schemes as formal social
security schemes are limited both in quantity and quality. Extended family and market
associations are main non formal social security providers. The study suggested that there
is a need to strengthen the formal security system and schemes, so that better welfare
provisions can be provided to people.
Goyal (1995), in her study titled: Impact of Labour Welfare on Job Satisfaction made a
comparative analysis between six cotton textile industries in Punjab belonging to private,
public, and co-operative sectors. The study was conducted on a sample size of 350 textile
workers based on random sampling. The study revealed that majority of textile workers
were satisfied with their job. However, private sector units have the maximum number of
satisfied workers, whereas, the cooperative sectors have maximum number of workers
dissatisfied with their jobs. In this study she determined the extent of job satisfaction
experienced by textile workers with the statutory labour welfare facilities provided in the
private, public and co-operative textile sectors in Punjab. The study highlighted a positive
relationship between the level of satisfaction with various labour welfare measures and
job satisfaction. The study suggested that statutory welfare facilities should be well
implemented so that the level of job satisfaction increases among textile workers in
Punjab.
Bhatnagar & Sharma (1994), in their article titled: Role and Effectiveness of Labour
Welfare Officers in Industrial Relations in Chandigarh, stated that performance of the
industrial management with regard to welfare work was far from satisfactory. In India,
government has failed to make the employers realize the need for the welfare of workers.
Grewal (1978), in his article Dimensions of Welfare in Coal Industry, stated that after
nationalization of industry in 1973 workers welfare has been given top priority. But
welfare of miners has been given a little attention in coal industry in India especially in
view of the hazardous nature of mining, unhygienic working conditions, mining accidents
and isolation from community life. He suggested that concerted efforts are needed to
improve the working conditions of miners.
From the above studies, it can be observed that various scholars have analysed the labour
welfare facilities in terms of its satisfaction level among workers in different industries.
Hardly any study has made an attempt to investigate the influence of demographics
(gender, age, education, monthly salary, experience and organisation of the workers) on
labour welfare amenities.

RESEARCH METHODOLOGY
Definition of Research
The manipulation of things, concepts or symbols for the purpose of generalizing to extend,
correct or verity knowledge, whether that knowledge aids in construction of theory or in the
practice of an art.
- D.Slesinger and M.Stephenson
RESEARCH DESIGN:
A research design is the arrangement of conditions for collection and analysis of data
in a manner that aims to combine relevance to the research purpose with economy in
procedure. Regarding this project, descriptive research design concern with describing the
perception of each individuals or narrating facts on welfare measures and diagnostic design
helps in determine the frequency with which something occurs or its associated with
something else. These two research design help in understand the characteristic in a given
situation. Think systematically about aspects in given situation, offers idea for probe and
research help to make certain simple decision.
DESCRIPTIVE RESEARCH
In this research it deals with descriptive research type. It includes surveys and fact-finding
enquiries of different kinds. The major purpose of descriptive research is description of the
state of affairs as it exists at present.
SAMPLE DESIGN
A sample design is a definite plan determined before any data are actually
collected for obtaining a sample from a given population. Sampling is used to collect data
from limited numbers whereas census is used for large numbers. For the research, sampling
method was used.
There are different types of sample design based on two factor namely the representation
basis and the element selection technique .There are two main categories under which
various sampling method can be put. There are
1. Probability sampling
2. Non probability sampling
In this particular research the A s
tudy is on probability sampling. And in the simple random sample is used.
PROBABILITY SAMPLING:
Probability sampling is based on the concept of random selection; the sample may be
either unrestricted or restricted. When each sample elements is drawn individually from the
population at large, then the sample so drawn is known as unrestricted sample, Where as
all other forms of sampling are covered under the term restricted sample.
The most frequently used probability samples are:
Simple random sample
Systematic sample
Stratified sample (proportionate & disproportionate)
Cluster sample
NON- PROBABILITY SAMPLING:

Non-probability sampling is that sampling procedure which does not afford any
basis for estimating the probability that each item in the population has of being included in
the sample.
Judgment sampling
Convenient sampling
Quota sampling.
Snowball sampling
SAMPLING METHOD
In this research systematic sampling method is used to collect the primary data by
using questionnaire.
SYSTEMATIC SAMPLING
A Systematic sample is selected at random sampling. When a complete list of the population
is available, this method is used. If a sample of 10 students is to be selected from 100
students, under this method kth item is picked up from the sample frame and k is the sample
interval.
POPULATION SIZE
The over all population size is 500 .

SAMPLE SIZE:
The total sample size of 110 has been taken for this study. Both male and female
Labours have been interviewed.
DATA COLLECTION METHOD
Primary Source of Data

Primary data is known as the data collected fro the first time through field survey.
Such data are collected with specific set of objectives to assess the current status of any
variable studied.
RESEARCH INSTRUMENT:
In this project, the data were collected through structured questionnaire.
QUESTIONNAIRE
A questionnaire is a schedule consisting of a number of coherent and

formulated series of question related to the various aspects of the under study. In this
method a pre printed list of question arranged in sequence is used to elicit response from
the important.
Types of questions
The following are the types of questions, which are used in research. They are:
a) Open ended question

b) Close ended question
a) Open ended questionnaire:
An open-ended question gives the respondents complete freedom to decide the form
length and detail of the form.
b) Close ended questionnaire:

The close-ended question is of two types they are as follows:
i) Dichotomous question
This type has only tow answers in the form of YES or NO, TRUE or
FALSE etc
ii) Multiple choice question.

In this case the respondents are offered two or mores choices and the
respondent have to indicate which is applicable in the following cases.
STATISTICAL TOOLS APPLIED
Percentage Analysis
Weighted Average
One-way ANOVA
PERCENTAGE ANALYSIS:
Percentage refers to a special kind of ratio. Percentage analysis test is done to find out
the percentage of the response of the respondents. In these tool various percentage are
presented by the way of Bar-diagram, Pie charts in order to have better understanding of the
analysis.
FORMULA:
Number of respondents
Percentage = ------------------------------------------------ 100
Total number of respondent
WEIGHTED AVERAGE:
Mean in which each item being averaged is multiplied by a number (weight) based
on the item's relative importance. The result is summed and the total is divided by the sum
of the weights. Weighted averages are used extensively in descriptive statistical analysis
such as index numbers. Also called weighted mean.
FORMULA:
WEIGHTED AVERAGE = WXi / Wi
WXi = The sum of weights (let x1, x2, x3 xn)
Xi = occur with weights (w1, w2, w3wn)

ONE-WAY ANOVA:
Under the one-way ANOVA, we consider only one factor and then observe that the reason
for said factor to be important is that several possible types of samples can occur within that
factor .
Analysis of varience table for one-way ANOVA
SOURCES OF SUM OF DEGREES OF MEAN SQUARE F-RATIO

VARIATION SQUARES FREEDOM
BETWEEN n1 (X1-X)2 ++ (k-1) SS BETWEEN MS BETWEEN

SAMPLES nk(Xk-X)2 (k-1) MS WITHIN
WITHIN (Xij-X)2+.+ (n-k) SS WITHIN

SAMPLES (Xki-Xk)2 (n-k)
TOTAL (Xij-X)2
(n-1)
i=1,2,
j=1,2..
This ratio is used to judge whether the difference among several means is significant or is
just a matter of sampling fluctuations.
1.1.6 LIMITATIONS OF STUDY
Time is the important limitation. Due to time constraints only limited population is
taken for the study.
Findings based on this study cannot be used in other organizations.
There are chances of misrepresentation responses.
The biased view of the respondent is another cause of the limitation

STUDIES ON MAJOR PERSONNEL ASPECTS LIKE LABOUR
ABSENTEEISM, LABOUR TURNOVER AND LABOUR
PRODUCTIVITY IN RELATION TO LABOUR WELFARE
Labour absenteeism is one of the major threats for Indian industries as it involves heavy
additional expenses. It results in the loss of production capacity of an organisation.
Absenteeism is one of the indicators to evaluate our welfare programmes and policies.
One of the objectives of the present research is to study the role of welfare measures in
controlling personnel problems of labour absenteeism, and labour turnover. Another
objective analyses the impact of welfare measures on the productivity of workers. Hence,
in this section, an attempt has been made to review studies on these three personnel
aspects, i.e., labour absenteeism, labour turnover, and labour productivity in relation to
labour welfare.
Barmase & Shukla (2013), in their article titled: A Study of Employee Absenteeism in
Hare Ram Cotton Mill of Chhindwara, examined that absenteeism is one of the most
serious concerns for manufacturing companies as well as service sector companies. But
manufacturing sector being the labour intensive face this problem more than the service
sector. Using simple random sampling data was collected from 100 employees of Hare
Ram Cotton Mill of Pandhurna, district Chhindwara. This paper describes the effect of
various demographics on the absenteeism behaviour of employees. The study concluded
that the major factors that can control absenteeism are welfare facilities, salary, leave
policies, supervisors behavior, good working conditions and transportation facility.
Saritha (2013), in A Study on Employee Absenteeism on Sagar Sugars & Allied
Products Ltd., Chittoor (A.P.), conducted a detailed study on absenteeism in Sagar
Sugars and Allied Products, Ltd. to identify various reasons that lead to absenteeism. The
study was conducted on 150 employees using convenience sampling. The study
investigated the causes and effects of employee absenteeism. The study concluded that
42% of the respondents were satisfied with the safety measures provided by the
management. Majority of the respondents showed a positive attitude towards the
superiors in the organization. 47% of the respondents were satisfied with work
environment existing in the organization. Nearly half of the respondents were absent due
to the effect of sickness in the organization. The study suggested that management should
take some measures to provide better working conditions and to increase the payment of
employees to reduce absenteeism. The management should recognize the efforts of the
employees and should reward them accordingly to bring satisfaction with their work.
Proper allowances should be given to employees to meet their needs.
Khare & Chaudhary (2013), in their research study titled: Absenteeism of Employee:
Research Methodology, examined that absenteeism is a serious workplace problem and
employers should address this problem on priority basis. The present study on labour
absenteeism in iron ore mines in Jabalpur (M.P.) focussed on various factors which are
responsible for absenteeism and suggested some measures to control absenteeism. For the
purpose of study 122 employees were selected using convenience sampling. The study
revealed that absenteeism affects efficiency, productivity and discipline of an
organization. It is a sign of disloyalty of the employee towards the organization. The
study suggested that financial motives should be used by employers to control
absenteeism and to increase loyalty of the employees.
Rathod et.al. (2012), in their study titled: Employee Absenteeism: A Study at Titan
Industry Limited, Bangalore, stated that absenteeism is one of the major human
problems of Indian Industries. The study focused on issues, causatives and remedial
measures related to absenteeism. Using random sampling technique, 50 respondents were
taken from corporate office of Titan Industries Ltd., Bangalore. The study concluded that
factors responsible for employees absenteeism are domestic problems, lack of co-
ordination among colleagues, poor working conditions and lack of proper welfare
facilities. The study suggested that absenteeism can be controlled and minimized by
implementing good working conditions and through other welfare measures.
Drakopoulos & Grimani (2011), in their study titled: The Relationship between Absence
from Work and Job Satisfaction: Greece and U.K. Comparison, stated that absence from
work is a complex issue influenced by both personal and organizational causes. Job
satisfaction has also been identified as one of the factors affecting an employees
motivation to work attendance. The study attempted to establish a causal relationship
between absenteeism and job satisfaction comprising a sample of 547 males and 454
females from Greece and UK. The empirical results suggested that there is a weak
negative relationship between absenteeism and job satisfaction.
Munro (2003), in Absenteeism and Presenteeism: Possible Causes and Solutions,
investigated causes of absenteeism and the possible solutions. Absenteeism impacts on
service delivery, staff morale and can lead to financial losses. If the cause has been
identified and solutions implemented and an employee continues to be absent from
his/her workstation then the only solution would be normal disciplinary procedures. There
are many contributing factors that affect an organizations objectives but one of the most
costly is absenteeism. Employers need to handle all forms of absenteeism in a fair and
transparent manner to minimize disharmony at workplace.
Pines et.al. (1985), in Rates of Sickness Absenteeism among Employees of a Modern
Hospital: The Role of Demographic and Occupational Factors, stated that sickness
absenteeism of hospital employees is a problem of concern due to its negative economic
and morale impacts. The objective of the study was to identify the impact of some
demographical variables on those groups of hospital employees who are at higher risk of
sickness absenteeism. A comparison with the data of the study performed in the same
hospital about 15 years ago showed a rise in the duration of absences with a simultaneous
reduction in their incidence. The study revealed that sickness absenteeism was higher
among female mainly unskilled workers presently or previously married, aged from 45 to
60, and employed in the hospital for over ten years. Continuous social and medical
surveillance of these employees is suggested as a promising way of reducing sickness
absenteeism.
Further, following studies on labour turnover in relation to labour welfare have been
reviewed.
Tariq et.al. (2013), in The Impact of Employee Turnover on the Efficiency of the
Organization, determined the impact of employee turnover on the performance of an
organization. The research study supported the argument that employees turnover is
positively associated with the organization inefficiency. The research study was based on
parameters like employee turnover, work load, work stress, employee salary, job
satisfaction, and work to family conflict. Statistical techniques of Correlation and
Regression were used to analyze the relationship among independent and dependent
variables. The result confirmed that the performance of an organization is negatively and
insignificantly associated with employee turnover, workload, work stress, salary, and
family to work conflict. The study further revealed that welfare facilities can reduce the
incidences of employee turnover.
Rekha & Kamalanabhan (2013), in A Study on the Employee Turnover Intention in
ITES/BPO Sector, analysed employee turnover intentions from two dimensions:
individual and organization level. They examined the influence of organizational
commitment on turnover intentions of employees. Data for this study was collected from
181 employees working in five ITES/BPO organizations located in Dehradun, India. The
results indicated low level of organizational commitment on the part of workers. On an
average, the participants indicated that they had low levels of intent to leave their place of
work. The participants also indicated low levels of job satisfaction. Welfare facilities,
organizational support, justice and job satisfaction were found to be negatively related to
turnover intention.
Kuria & Alice (2012), in Assessment of Causes of Labour Turnover in Three and Five
Star Rated Hotels in Kenya, mentioned that hospitality sector leads with many
employees changing jobs from time to time. Both the internal and external causes of
labour turnover affect the growth and profitability of the organisation. The main purpose
of this study was to find out the internal and external causes of labour turnover in three
and five star rated hotels in Nairobi city. This study involved a total of 133 permanently
employed staff working in these star-rated hotels. Simple random sampling method was
used to pick hotels as well as the respondents for this study. The findings of the study
revealed that, lack of balance between work and personal life, lack of staff involvement in
decision making, poor working conditions were the main reasons for employee turnover.
Poor remunerations and undefined rewarding system were another issues on which
dissatisfaction was shown by the respondents. The study recommended that, management
should improve the working conditions for the employees to reduce employee turnover.
The study further recommended the need to establish a rewarding system to retain the
workers.
Davidson et.al. (2010), in How Much Does Labour Turnover Cost ?: A Case Study of
Australian Four and Five Star Hotels, stated that employee turnover is a significant
challenge for organisational performance. The study was conducted in Australian
accommodation sector to assess turnover rates and costs. In the present study, employees
from 64 four and five star hotels across Australia were included in sample. The study
revealed that annual turnover rate for operational employees and managerial staff was
higher than expected. These levels of turnover suggested that both managerial and
operational employees may have similar working experiences in the hotel sector or
similar reasons for leaving. Employees at all levels look for better pay, working
conditions, training and career prospects, hence these measures can solve turnover issues.
Shamsuzzoha & Shumon (2007), in Employee Turnover-A Study of its Causes and
Effects to Different Industries in Bangladesh, highlighted that low productivity and
employees turnover are challenging issues in business now-a-days. The study included
several local industries both from government and private sectors in Bangladesh and
assessed the causes of turnover, its negative effects and possible recommendations that
could be helpful to the local industries for their productivity and market share. They
discussed that turnover basically arises from the unhappiness at work place. In addition to
this, if the skills that they possess are in demand, they may be lured away by higher pay, better
benefits or better job growth potential. Personal and trait based factors also influence turnover
rates. Overall substandard equipments, lack of proper welfare facilities, lack of opportunity for
growth, feelings of not being appreciated, inadequate supervision and training, unequal or
substandard wage structures are main factors for employee turnover.
Yanadori & Kato (2007), in their study Average Employee Tenure, Voluntary Turnover Ratio,
and Labour Productivity- Evidence from Japanese Firms, showed that voluntary turnover ratio
is negatively related to firm labour productivity. The study analysed only US samples. Their
study contributed to researchers efforts to generalize the relationship between voluntary
turnover and organizational performance. Turnover is detrimental to labour productivity as it
reduces the stock of human capital that a firm wants to retain. Findings suggested that firm
average employee tenure mediates the relationship between voluntary turnover and labour
productivity.
The review of following studies on labour productivity in relation to labour welfare traced out
the importance of welfare facilities in increasing productivity.
Hanna et.al. (2008), in Impact of Shift Work on Labour Productivity for Labour Intensive
Contractor, analysed the impact of shift work on labour productivity and addressed the
appropriate use of shift work. The work determined the relationship between the length of shift
work and labour efficiency. The results of the research indicated that shift work has the
potential to be both beneficial and detrimental to the productivity of construction labour. Small
amounts of well-organized shift work can serve as a very effective response to increase
productivity.
P.L. Rao, in his Labour Legislation in the Making, opines that professional bodies like National
Institute of Personnel Management should constitute a standing committee to monitor the
proceedings in the Parliament regarding the labour welfare measures.
Cooperative Unionism and Labour Welfare by Michael R. White , (University of Westminster -

Policy Studies Institute) , Industrial Relations Journal, Vol. 36, No. 5, pp. 348-366, September
2005.
Using British national survey data, this article assesses the impact of unions on management
practices to reduce labour costs, implement high-performance work systems, and make Labour
welfare provisions. Relative to non-union workplaces, those with unions are found to have
practices which are consistent with 'mutual gains' outcomes.
Staff development and Labour welfare practices and their effect on productivity
Ghana Library Journal Vol. 19 (1) 2007 pp. 83-96
Staff development and Labour welfare are valuable assets in an organization since an
organization's primary aims are productivity and profitability. Every organization primarily needs
committed and dedicated staff that will help the organization to meet its tactical and strategic
objectives.
The study examines whether staff development policies exist in three special libraries in Ghana,
and whether training programmes are being offered to increase staff competence, efficiencies and
performance. It was also aimed at assessing staff welfare practices and how these affect
productivity and performance.
In conducting the survey, two sets of questionnaires were drawn up. One set was administered to
management and the other set went to Library staff. The survey revealed that all the organizations
under study have staff development policies and training programmes for staff to enhance their
capabilities and efficiency. Again, the survey revealed that staff welfare is catered for since several
motivational avenues and incentive packages are available to boost their morale.
1.2.1 INDUSTRY PROFILE
The railways were introduced in the country in the 1853by the British almost
immediately after it appeared in England. From a modest beginning of 53 kms between Mumbai
and Thane, the railways have made a long journey and emerged as the principal mode of transport
in the country. After Independence, the railways of the country were totally integrated and brought
under the unified management of the Railway Board. Today, the Indian Railways (IR) has a
network spread over 63,000 route kms. And 7000 stations throughout the length and breadth of the
country. It carries 12 million passengers and more than 1.2 million tons of freight daily,
accounting roughly for 40 per cent of the freight and 2 percent of the passenger traffic in the
country.
INDIAN RAILWAYS:
Indian railways are the second largest railway network in the world, bringing people and
places together. Indian Railway plays a pivotal role in the growth of our countrys economy. For
functional efficiency the Indian Railways is divided in to 16 zonal railways comprising 67
divisions and 6 production units with Railway Board on top of the overall management hierarchy.
Indian Railways, with 62,000 kilometer of route are the worlds second largest railway
system under a single management in the four decades. Since independence Indian railways has
played a vital role in the socio-economic development of the country as well as preserving its
unity and integrity, by linking together the divers regions through its vast growth and also
contributing to the countries defense preparation.
Our railway system continues to be the main lifeline of the country carrying the bulk of long
distance passengers and goods traffic with an ascent on the volume of the traffic moved rather
than the attainment of the high speeds.
WELFARE MEASURES
Medical facility
Quarters
Canteen facilities
Kalyana Mandapams
Holidays Home
Staff Benefit Fund
Book Bank
Schooling Facilities
Pass entitlements
Other facilities
Environment policy:
Integral Coach Factory, Perambur, Dehradun-38 a premier railway coach builder of the
country fully believes in prevention of pollution and reaffirms its commitment to minimize the
adverse impact of its processes on environment.
ICF shall Endeavour to:
1. Control pollution by monitoring and continually improving its processes and activities.
2. Conserve resources such as energy, water and raw material and strive reduce their
consumption.
3. Minimize resource wastage by improving its processes and recycle such resources
wherever feasible economically.
4. Comply with relevant environmental legislations, regulations and other requirements.
5. Set time bound goals and objectives and provide adequate resources to achieve the
same.
Mission:
Innovations, improvements and developments have been the way of life at ICF.
Quality Policy:
1. To achieve and maintain excellence in quality, reliability and safety of our products.
2. To consistently meet or exceed customers expectation.
3. To strive for continual improvement in all areas to achieve leadership in the markets
we serve.
The Future:
ICF is completing its 55 years of service to the Nation. It has been planned to celebrate its
Golden Jubilee in a befitting manner, from a modest beginning of over 1100 coaches per year and
that to in more than 170 varieties. ICF can perhaps be compared with the best of coach production
facilities and still remains a pioneer in introducing new types of coaches. In the 151 years of
Indian Railways, role of ICF in its 55 years is certainly a remarkable one and will continue to be
so in the years to come.
CASES IN LABOUR LAW
3. Classification of LABOUR LAWS in India
Labour Laws may be classified under the following heads:
I.Laws related to Industrial Relations such as:
1. Trade Unions Act, 1926

2. Industrial Employment Standing Order Act, 1946.
3. Industrial Disputes Act, 1947.
II. Laws related to Wages such as:
4. Payment of Wages Act, 1936

5. Minimum Wages Act, 1948
6. Payment of Bonus Act, 1965.
7. Working Journalists (Fixation of Rates of Wages Act, 1958
III. Laws related to Working Hours, Conditions of

Service and Employment such as:
8. Factories Act, 1948.

9. Plantation Labour Act, 1951.
10. Mines Act, 1952.
11. Working Journalists and other Newspaper Employees
(Conditions of Service and Misc. Provisions) Act, 1955.
12. Merchant Shipping Act, 1958.
13. Motor Transport Workers Act, 1961.
14. Beedi & Cigar Workers (Conditions of Employment) Act, 1966.
15. Contract Labour (Regulation & Abolition) Act, 1970.
16. Sales Promotion Employees Act, 1976.
17. Inter-State Migrant Workmen (Regulation of Employment and
Conditions of Service) Act, 1979.
18. Dock Workers (Safety, Health & Welfare) Act, 1986.
19. Building & Other Construction Workers (Regulation of
Employment & Conditions of Service) Act, 1996.
20. Building and Other Construction Workers Welfare Cess Act,
1996
21. Cine-Workers and Cinema Theatre Workers (Regulation of
Employment) Act, 1981
22. Dangerous Machines (Regulation) Act, 1983
23. Dock Workers (Regulation of Employment) Act, 1948
24. Dock Workers (Regulation of Employment) (Inapplicability to
Major Ports) Act, 1997
25. Employment of Manual Scavengers and Construction of
Dry Latrines (Prohibition) Act, 1993
26. Industrial Employment (Standing Orders) Act, 1946
27. Mines and Mineral (Development and Regulation Act, 1957
28. Plantation Labour Act, 1951
29. Private Security Agencies (Regulation) Act, 2005
IV. Laws related to Equality and Empowerment of

Women such as:
30. Maternity Benefit Act, 1961

31. Equal Remuneration Act, 1976.
V. Laws related to Deprived and Disadvantaged

Sections of the Society such as:
32. Bonded Labour System (Abolition) Act, 1976

33. Child Labour (Prohibition & Regulation) Act, 1986
34. Children (Pledging of Labour) Act, 1933
VI. Laws related to Social Security such as:
35. Workmens Compensation Act, 1923.

36. Employees State Insurance Act, 1948.
37. Employees Provident Fund & Miscellaneous Provisions Act,
1952.
38. Payment of Gratuity Act, 1972.
39. Employers Liability Act, 1938
40. Beedi Workers Welfare Cess Act, 1976
41. Beedi Workers Welfare Fund Act, 1976
42. Cine workers Welfare Cess Act, 1981
43. Cine Workers Welfare Fund Act, 1981
44. Fatal Accidents Act, 1855
45. Iron Ore Mines, Manganese Ore Mines and Chrome Ore
Mines Labour Welfare Cess Act, 1976
46. Iron Ore Mines, Manganese Ore Mines and Chrome Ore
Mines Labour Welfare Fund Act, 1976
47. Limestone and Dolomite Mines Labour Welfare Fund Act, 1972
48. Mica Mines Labour Welfare Fund Act, 1946
49. Personal Injuries (Compensation Insurance) Act, 1963
50. Personal Injuries (Emergency Provisions) Act, 1962
51. Unorganised Workers Social Security Act, 2008
4a. APPRENTICES ACT, 1961
The main purpose of the Act is to provide practical training to technically qualified persons in
various trades. The objective is promotion of new skilled manpower. The scheme is also
extended to engineers and diploma holders.
The Act applies to areas and industries as notified by Central government. [Section 1(4)].
Scheme of the Act
There are 38 Sections in total and 1 Schedule. This Schedule is about modifications in the
Workmens Compensation Act, 1923 with regard to its application to apprentices under the
Apprentices Act, 1961.
Obligation of Employer
Every employer is under obligation to provide the apprentice with the

training in his trade in accordance with the provisions of this Act and the
rules made there under.
If the employer is not himself qualified in the trade, he has to ensure that
a person who possesses the prescribed qualification is placed in charge of
the training of the apprentice.
Every employer has to provide adequate instructional staff, possessing
such qualifications as may be prescribed for imparting practical and
theoretical training and facilities for trade test of apprentices; and
Every employer is under obligation to take apprentices in prescribed ratio
of the skilled workers in his employment in different trades. [Section 11].
In every trade, there will be reserved places for scheduled castes and
schedules tribes. [Section 3A]. Ratio of trade apprentices to workers shall
be determined by Central Government.
Employer can engage more number of apprentices than prescribed
minimum. [Section 8(1)].
The employer has to make arrangements for practical training of apprentice
[Section 9(1)].
Employer will pay stipends to apprentices at prescribed rates. If the
employees are less than 250, 50% of cost is shared by Government. If
employer is employing more than 250 workers, he has to bear full cost
of training.
Obligations of Apprentices
Every trade apprentice undergoing apprenticeship training shall have the following
obligations, namely:
To learn his trade conscientiously and diligently and endeavour to qualify

himself as a skilled craftsman before the expiry of the period of training;
To attend practical and instructional classes regularly;
To carry out all lawful orders of his employer and superiors in the
establishments; and
To carry out his obligations under the contract of apprenticeship.
In case of graduate or technician apprentice or technician (vocational) apprentice, apart from

the afore stated obligations, the Act imposes further obligation to learn his subject in
Engineering or Technology or Vocational Course. (Section 12)
Who can be an Apprentice - Apprentice should be of minimum age of 14 years and he

should satisfy the standard of education and physical fitness as prescribed. [Section 3].
Reservation of training places for scheduled castes
Section 3A provides that in every designated trade, training places shall be reserved by the
employer for the Scheduled Castes and Scheduled Tribes (as defined in clauses (24) and (25)
of Article 366 of the Constitution) and where there is more than one designated trade in an
establishment, such training places shall be reserved on the basis on the total number of
apprentices in all the designated trades in such establishment. The reservation shall be such
as may be prescribed having regard to the population of the Scheduled Castes and Scheduled
Tribes in the State concerned.
Duration of Training - Duration of training period and ratio of apprentices to skilled

workers for different trades has been prescribed in Apprenticeship Rules, 1991. Duration of
30
Apprenticeship may be from 6 months to 4 years depending on the trade, as prescribed in
Rules. Period of training is determined by National Council for training in Vocational Trades
(established by Government of India)-(Section 6).
Contract with Apprentice Apprentice appointed has to execute a contract of

apprenticeship with employer. The contract has to be registered with Apprenticeship Adviser.
If apprentice is minor, agreement should be signed by his guardian. [Section 4(1)] Apprentice
is entitled to casual leave of 12 days, medical leave of 15 days and extraordinary leave of 10
days in a year.
30
Date of commencement of apprenticeship training
The apprenticeship training shall be deemed to have commenced on the date on which the
contract of apprenticeship has been entered into.
Registration
The employer shall send the contract to the Apprenticeship adviser for
registration within three months of the date on which it was signed (Rule
6).
The contract shall be registered by the Apprenticeship Adviser on being
satisfied that the person described as an apprentice in the said contract is
qualified under this Act.
Registration of contract of apprenticeship under Section 4(4) is not a
necessary ingredient of definition of apprentice. (Bhaskaran v. KSEB
(1986) 1 LLN 869).
Terms and conditions of contract
The contract may contain such terms and conditions as may be agreed to by the parties to the
contract. In case, the Central Government after consulting the Central Apprenticeship Council
makes any rule varying the terms and conditions of apprenticeship training of any category of
apprentices undergoing such training then the terms and conditions of every contract relating
to that category of apprentices and subsisting immediately before the making of such rule
shall be deemed to have been modified accordingly.
Novation of contract of apprenticeship:
Where an employer is for any reason unable to fulfill his obligations under the contract and
with approval of the Apprenticeship Adviser it is agreed between the employer, the apprentice
64
or his guardian and any other employer that the apprentice shall be engaged as an apprentice
under the other employer for the unexpired portion of the period of apprenticeship training,
the agreement, on registration with the Apprenticeship Adviser shall be deemed to be the
contract of apprenticeship between the apprentice or his guardian and other employer. Such
contract on and from the date of such registration shall be terminated with the first employer
and no obligation under that contract shall be enforceable (Section 5).
Payment to apprentices
This is a contractual as well as statutory obligation imposed under Section 13 of the Act that
an employer pays to every apprentice during the period of training such stipend at a rate not
less than the prescribed minimum rate and this rate will be specified in the contract. An
employer shall pay such stipend at such intervals and subject to such conditions as may be
prescribed. However, an apprentice shall not be paid on the basis of piece-work nor he shall
take part in any output bonus or other incentive scheme.
Termination of contract
The contract of apprenticeship training shall terminate on the expiry of the period of
apprenticeship training. Either party can make application for termination of contract to the
Apprenticeship Adviser and thereafter send a copy of the same to the other party, who on
being satisfied that the parties have failed to carry out the terms and conditions of the contract
and it is desirable in the interests of the parties or any of them to terminate the contract, shall
register the same. However, the employer shall pay the prescribed amount of compensation to
the apprentice where the contract is terminated for failure on the part of the employer to
honour the contract. Where the contract is terminated for failure on the part of the apprentice,
he or his guardian shall refund the cost of the training to the employer. (Section 7)
Legal Position of Apprentices - An apprentice is not a workman during apprentice training. [Section
18] Provisions of labour law like Bonus, PF, ESI.
65
Act, gratuity, Industrial Disputes Act etc. are not applicable to him. However, provisions of
Factories Act regarding health, safety and welfare will apply to him. Apprentice is also
entitled to get compensation from employer for employment injury. [Section 16].
An employer is under no obligation to employ the apprentice after completion of

apprenticeship. [Section 22(1)]. However, in UP State Road Transport Corpn v. UP
Parivahan Nigam Shishukh Berozgar Sangh AIR 1995 SC 1114 = (1995) 2 SCC 1 , it was
held that other things being equal, a trained apprentice should be given preference over direct
recruits. It was also held that he need not be sponsored by the employment exchange. Age bar
may also be relaxed, to the extent of training period. The concerned institute should maintain
a list of persons already trained and in between trained apprentices, preference should be
given to those who are senior. same view in UP Rajya Vidyut Parishad v. State of UP 2000
LLR 869 (SC).
Stipend payable- The minimum rate of stipend payable per month is as follows - (a)
Engineering graduates - Rs 1,970 p.m. for post-institutional training (b) Sandwich course
students for degree examination - Rs 1,400 p.m. (c) diploma holders - Rs 1,400 p.m. for post-
institutional training (d) Sandwich course students for degree examination - Rs 1,140 p.m. (e)
Vocational certificate holder - Rs 1,090 p.m. [w.e.f. May 2001]
In case of 4 year training, the stipend is as follows first year Rs 820 pm. Second year Rs
940 pm. Third year Rs 1,090 pm. Fourth year Rs 1,230 pm. [From May 2001].
Test and Proficiency certificate - On completion of training, every trade apprentice has to
appear for a test conducted by National Council. If he passes, he gets a certificate of
proficiency.
Apprenticeship Adviser - Government is empowered to appoint Apprenticeship Adviser, Dy

Apprenticeship Adviser etc. to supervise the scheme. Various powers have been conferred on
them under the Act.
66
Disputes under contract and settlement thereof
Section 20 of the Act provides that if out of the terms and conditions of the contract any
dispute arises, it will be referred to Apprenticeship Adviser for decision. An appeal can be
preferred by the aggrieved party within 30 days of the communication of the Advisers
decision to the Apprenticeship Council and such appeal shall be heard and determined by the
Committee of that Council appointed for the purpose, and such decision of the Committee
shall be final.
Holding of Test and Grant of Certificate and Conclusion of Training (Section 21) - (1) Every
trade apprentice who has completed the period of training shall appear for a test to be conducted by
the National Council to determine his proficiency in the designated trade in which he has undergone
his apprenticeship training.
(2) Every trade apprentice who passes the test referred to in sub-Section (1) shall
be granted a certificate of proficiency in the trade by the National Council.
(3)The progress in apprenticeship training of every graduate or technician

apprentice, technician (vocational) apprentice shall be assessed by the employer
from time to time.
67
(4) Every graduate or technician apprentice or technician (vocational) apprentice,
who completes his apprenticeship training to the satisfaction of the concerned
Regional Board, shall be granted
(2) Notwithstanding anything in sub-Section (1), where there is a condition in a contract of

apprenticeship shall, after the successful completion of the apprenticeship training, serve the
employer, the employer shall, on such completion, be bound to offer suitable employment to
the apprentice, and the apprentice shall be bound to serve the employer in that capacity for
such period and on such remuneration as may be specified in the contract:
Provided that where such period or remuneration is not, in the opinion of the Apprenticeship
Adviser, reasonable, he may revise such period or remuneration so as to make it reasonable,
and the period or remuneration so revised shall be deemed to be the period or remuneration
agreed to between the apprentice and the employer.
Offences and Penalties (Section 30)
(1) If any employer - (a) engages as an apprentice a person who is not

qualified for being so engaged, or
(b) fails to carry out the terms and conditions of a contract of

apprenticeship, or
(c) contravenes the provisions of this Act relating to the number of apprentices
which he is required to engage under those provisions, he shall be punishable
with imprisonment for a term which may extend to six months or with fine or
with both.
(2) If any employer or any other person - (a) required to furnish any information
or return - (i) refuses or neglects to furnish such information or return, or
(ii)furnishes or causes to be furnished any information or return which is false

and which he either knows or believes to be false or does not believe to be true,
or
(iii) refuses to answer, or gives a false answer to any question necessary for
obtaining any information required to be furnished by him, or
(b)refuses or willfully neglects to afford the Central or the State Apprenticeship

Adviser or such other person, not below the rank of an Assistant Apprenticeship
Adviser, as may be authorised by the Central or the State Apprenticeship Adviser
in writing in this behalf any reasonable facility for making any entry, inspection,
examination or inquiry authorised by or under this Act, or
(c) requires an apprentice to work overtime without the approval of the

Apprenticeship Adviser, or
(d)employs an apprentice on any work which is not connected with his training, or
(e) makes payment to an apprentice on the basis of piecework, or
(f) requires an apprentice to take part in any output bonus or incentive scheme,
he shall be punishable with imprisonment for a term which may extend to six
months or with fine or with both.
Penalty where no specific penalty is specified (Section 31) - If any employer or any other person
contravenes any provision of this Act for which no punishment is provided in Section 30, he shall be
punishable with fine which shall not be less than one thousand rupees but may extend to three
thousand rupees.
Offences by Companies (Section 32)
(1) If the person committing an offence under this Act is a company, every
person who, at the time the offence was committed was in charge of, and was
responsible to, the company for the conduct of business of the company, as well
as the company, shall be deemed to be guilty of the offence and shall be liable to
be proceeded against and punished accordingly:
Provided that nothing contained in this sub-Section shall render any such person liable to
such punishment provided in this Act if he proves that the offence was committed without his
knowledge or that he exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-Section (1), where an offence

under this Act has been committed by a company and it is proved that the
offence has been committed with the consent or connivance of, or is attributable
to any negligence on the part of, any director, manager, secretary or other
officer of the company, such director, manager, secretary, or other officer
shall also be
deemed to be guilty of that offence and shall be liable to be proceeded against and punished
accordingly.
Explanation: For the purposes of this Section, - (a) "company" means a body corporate and
includes a firm or other association of individuals; and
(b) "director" in relation to a firm means a partner in the firm.
Cognizance of Offences (Section 33)
No court shall take cognizance of any offence under this Act or the rules made there under
except on a complaint thereof in writing made by the Apprenticeship Adviser or the officer
of the rank of Deputy Apprenticeship Adviser and above within six months from the date on
which the offence is alleged to have been committed.
4b. Employee State Insurance Act, 1948

Introduction
The Employee State Insurance Act, [ESIC] 1948, is a piece of social welfare legislation
enacted primarily with the object of providing certain benefits to employees in case of
sickness, maternity and employment injury and also to make provision for certain others
matters incidental thereto. The Act in fact tries to attain the goal of socio-economic justice
enshrined in the Directive principles of state policy under part 4 of our constitution, in
particular articles 41, 42 and 43 which enjoin the state to make effective provision for
securing, the right to work, to education and public assistance in cases of unemployment, old
age, sickness and disablement. The act strives to materialize these avowed objects through
only to a limited extent. This act becomes a wider spectrum than factory act. In the sense that
while the factory act concerns with the health, safety, welfare, leave etc of the workers
employed in the factory premises only. But the benefits of this act extend to employees
whether working inside the factory or establishment or elsewhere or they are directly
employed by the principal employee or through an intermediate agency, if the employment is
incidental or in connection with the factory or establishment.
Related Legislations: ESI (Central) Rules, 1950 and ESI (General) Regulations, 1950
Origin
The Employee State Insurance act was promulgated by the Parliament of India in the year
1948.To begin with the ESIC scheme was initially launched on 2 nd February 1952 at just two
industrial centers in the country namely Kanpur and Delhi with a total coverage of about 1.20
lakh workers. There after the scheme was implemented in a phased manner across the
country with the active involvement of the state governments.
Objectives:
The ESI Act is a social welfare legislation enacted with the object of providing certain
benefits to employees in case of sickness, maternity and employment injury. Under the Act,
employees will receive medical relief, cash benefits, maternity benefits, pension to
dependents of deceased workers and compensation for fatal or other injuries and diseases.
Definitions
According to Section 2 (m) of Factories Act, 1948, Factory means any premises including
the precints thereof -
(a)whereon ten or more persons are employed or were employed for wages on
any day of the preceding twelve months, and in any part of which a
manufacturing process is being carried on with the aid of power or is ordinarily so
carried on, or
(b)whereon twenty or more persons are employed or were employed for wages
on any day of the preceding twelve months, and in any part of which a
manufacturing process is being carried on without the aid of power or is
ordinarily so carried on.
but does not include a mine subject to the operation of Mines Act, 1952 or a railway running
shed;
According to Section 2 (k) of Factories Act, "manufacturing process" means any process for
- (i) making, altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning,
breaking up, demolishing, or otherwise treating or adapting any article or substance with a
view to its use, sale, transport, delivery or disposal, or
(ii) pumping oil, water, sewage or any other substance; or;
(iii) generating, transforming or transmitting power; or
(iv) composing types for printing, printing by letter press, lithography,

photogravure or other similar process or book binding; lra-6 ] [ lra-7 or lra-7 ]
(v) constructing, reconstructing, repairing, refitting, finishing or breaking up

ships or vessels;
(vi) preserving or storing any article in cold storage;
According to Section 2 (h) of The Minimum Wages Act, "wages"- means all remuneration
capable of being expressed in terms of money which would if the terms of the contract of
employment express or implied were fulfilled be payable to a person employed in respect of
his employment or of work done in such employment and includes house rent allowance but
does not include -
(i) the value of -
(a) any house accommodation supply of light water medical attendance

or
(b) any other amenity or any service excluded by general or special order of the
appropriate government;
(ii) any contribution paid by the employer to any person fund or provident fund
or under any scheme of social insurance;
(iii) any traveling allowance or the value of any traveling concession;
(iv) any sum paid to the person employed to defray special expenses entailed
on him by the nature of his employment; or
(v) any gratuity payable on discharge
Applicability:
The ESI Act extends to the whole of India.

It applies to all the factories including Government factories (excluding
seasonal factories), which employ 10 or more employees and carry on a
manufacturing process with the aid of power and 20 employees where
manufacturing process is carried out without the aid of power.
The act also applies to shops and establishments. Generally, shops and
establishments employing more than 20 employees are covered by the
Act. Shop according to the Delhi Shops and Establishment Act, 1954
means any premises where goods are sold either by
retail or wholesale or where services are rendered to customers, and includes an office, a
store-room, godown, warehouse or workhouse or work place, whether in the same
premises or otherwise, used in or in connection with such trade or business but does not
include a factory or a commercial establishment. Establishment means a shop, a
commercial establishment, residential hotel, restaurant, eating-house, theatre or other
places of public amusement or entertainment to which this Act applies and includes such
other establishment as Government may, by notification in the Official Gazette, declare to
be an establishment for the purpose of this Act. According to the Delhi Shops and
Establishment Act, 1954, Commercial Establishment means any premises wherein
any trade, business or profession or any work in connection with, or incidental or
ancillary thereto is carried on and includes a society registered under the Societies
Registration Act, 1860, and charitable or other trust, whether registered or not, which
carries on any business, trade or profession or work in connection with, or incidental or
ancillary thereto, journalistic and printing establishments, contractors and auditors
establishments, quarries and mines not governed by the Mines Act, 1952, educational or
other institutions run for private gain, and premises in which business of banking,
insurance, stocks and shares, brokerage or produce exchange is carried on, but does not
include a shop or a factory registered under the Factories Act, 1948, or theatres, cinemas,
restaurants, eating houses, residential hotels, clubs or other places of public amusements
or entertainment. Form 01 Employers Registration Form also requires a copy of the
registration certificate or licence obtained under the Shops and Establishment Act to be
attached along with this form. From this it is quite evident that ESI Act will be applicable
to shops and establishments. Again the definition of shops and establishment will vary
from state to state depending on the shops and establishment act of that particular state.
The act does not apply to any member of Indian Naval, Military or Air Forces.
All employees including casual, temporary or contract employees drawing
wages less than Rs 10,000 per month are covered. The ceiling limit has been
raised from Rs.7500 to Rs.10000 with effect from 01.10.06.
Apprentices covered under the Apprenticeship Act are not covered under this
Act. According to Apprenticeship Act 1961, apprentice means a person
who is undergoing apprenticeship training in pursuance of a contract of
apprenticeship.
40
o The apprentices under any scheme as the name suggests come to learn the tricks of
the trade and may not count much so far as the output of the factory is concerned,
with that end in view, the apprentices are exempted from the operation of laws
relating to labour unless the State Government thought otherwise.-- Regional

Director ESIC v. M/s Arudyog 1987 (1) LLJ 292.
A factory or establishment, to which this Act applies, shall continue to be

governed by its provisions even if the number of workers employed falls
below the specified limit or the manufacturing process therein ceases to
be carried on with the aid of power subsequently.
Where a workman is covered under the ESI scheme,
o Compensation under the Workmen's Compensation Act cannot be
claimed in respect of employment injury.
o No benefits can be claimed under the Maternity Benefits Act.
Important Case laws
1. Where by some club not only sporting facilities but a kitchen is also
maintained, wherein a big number of members come, it is not necessary
that they are participating only in sports activities, they are also
entertaining themselves and their guests by partaking beverages and tea
served by the club. Activity in the kitchen has a direct connection with the
activities carried on in the rest of the club premises. It is necessary that
the club be registered under ESI Act as regards all the employees engaged
by the club irrespective of the fact in which department they are
working. Cricket Club of India satisfies the definition of the term
`factory' under s. 2(12) of the Act hence covered by it.-- Cricket Club of India v. ESI
Corporation 1994 (69) FLR 19.
2. Where in an establishment activities like that of clearing and forwarding is

going on, it would fall within the expression "shop" even though clearing of
documents is done in customs house meant for export and import of
goods. Person involved in such business is catering to the needs of
exporters and importers and others wanting to carry the goods further. --
AIR 1993 SC 252 .
3. Anyone having product may approach advertising agency. The advertising
agency will prepare an advertising campaign for him utilising the services
40
of the experts it employs in this behalf. It sells the campaign to the client
and receives the price thereof. Indubitably, the price will depend upon the
nature of the campaign but that does not make any great difference.
Essentially, the advertising agency sells its expert services to a client to
enable the client to launch an effective campaign of his products without
staining the language, the premises of an advertising agency can be said
to be a "shop"--ESI Corporation v. R.K. Swamy 1993 (67) FLR 1145 : 1993
(2) CLR 1068.
4. Where a laid-off employee after signing the lay-off register was coming out
of the factory premises and when crossing the road was hit by a scooter,
injuries sustained by him were
40
taken as covered during the course of employment on the basis of theory of notional
extension.-- Satya Sharma v. ESI Corporation 1991 (63) FLR 339 .
5. If the work by the employee is conducted under the immediate gaze or

overseeing of the principal employer or his agent, subject to other
conditions as envisaged being fulfilled he would be an employee for the
purpose of s. 2(9).-- CES Corporation Ltd. v. Subash Chandra Bose 1992
(1) LLJ 475.
6. A work that is conducive to the work of the factory or establishment or
that is necessary for the augmentation of the work of the factory or
establishment will be incidental or preliminary to or connected with the
work of the factory or establishment. The casual employees shall also be
brought within it and are entitled to the benefits which the Act grants. The
casual labour employed to construct additional buildings for expansion of
the factory are the employees under the Act.-- Regional Director, ESIC v.
South India Flour Mills Ltd. 1986 (53) FLR 178.
7. Employees engaged for repairs, site clearing, construction of buildings,
etc. of the principal employer are employees within the meaning of s. 2(9)
of the Act. --Kirloskar Pneumatic Co. Ltd. v. ESI Corporation 1987 (70) FJR
199.
8. The expression "employed for wages or in connection with the work of a
factory or establishment" is of very wide amplitude and its generality is
not in any way prejudiced by the expression and includes any person
employed for wages or any work connected with the administration of the
factory or establishment or in connection with sale or distribution of the
products of the factory or establishments. The word "includes" in the
statutory definition of a term is generally used to enlarge the meaning of
the preceding words and it is by way of extension and not with restriction.
In order to determine whether the employees of the company working at
its branch sales offices and carrying on acts of sale and distribution of
goods manufactured by the company as well as the goods produced by
the foreign company are "employees" what is pertinent is not whether
they are "principally" and primarily engaged in sale and distribution of the
products of the company but whether the business of sale and distribution
either "principally" or "marginally" of the products of the foreign company
is being done on behalf of the company. If the main business of the
company itself at the branch sales offices, is to sell and distribute products
41
of foreign company and the employees working have been employed by
the company basically in connection with this work, it would be difficult to
hold that the employees at branch sales offices are not "employees" within
the meaning of the term defined in s. 2(9) of the Act notwithstanding the
fact that the sale and distribution of the products of the company at
42
such offices are only marginal.-- Director General, ESI Corporation v. Scientific Instrument
Co. Ltd. 1995 Lab. IC 651 .
9. Where the work of fixing the marble is extended to a contractor by a

marble manufacturing company, duty of the contractor is only to complete
the work while marble, cement etc., is supplied by the manufacturing
company, workers employed by the contractor would be the employees of
the factory as under s. 2(9) of the Act.-- 1992 (2) CLR 881.
10.There is no such difference as that of casual or temporary or permanent
employee for the expression "employee" as defined under s. 2(9) of the
Act. It is so wide as to include even a casual employee who is employed
just for a day for wages. The test being whether the person is employed
for wages on any work which is connected with the work of a factory or
establishment which bears the application of the Act except those
exempted by the definition.-- ESI Corporation v. Suvarna Saw Mills 1980
(57) FJR 154.
11.Where a department of publication and press run by the university
concerned is engaged in the printing of text books, journals, registers,
forms, etc., that would amount to manufacturing process.-- Osmania
University v. ESI Corporation 1986 (1) LLN 72 .
12.Where there was no manufacturing of articles nor the hotel was
manufacturing any article with the aid of power except maintaining one
refrigerator to preserve milk and curd, and as there was no using of power
in the kitchen for making the eatables and the refrigerator had been kept
only for preservation of milk and curd, there was no manufacturing
process.-- Ritz Hotel v. ESI Corpn. 1995 (1) Mah. LJ 63.
13.Wages paid for the holidays are wages as defined.-- R.D., ESI Corporation
v. Raj Keshaw Co. 1991 Lab. IC 1991 Lab. IC 1989.
14.Overtime wages could not be treated as "wages" for the purpose of
contribution under the Act.-- Hind Art Press v. ESI Corporation 1990 (1) LLJ
195.
15.The ESI Corporation is conferred with the power to recover arrears of
contributions from the employer along with damages/interest on the
contribution that remained due. Correspondingly it is under an obligation
to pay with interest the arrears of benefits to the insured employees or his
dependents.-- ESI Corporation v. Bhag Singh 1989 (2) LLJ 126.
16.Section 53 of the ESI Act (Bar against receiving or recovery of
compensation or damages under any other law) does not bar the remedy
under s. 110A of the Motor Vehicles Act, 1939.-- Deputy General Manager
KSRTC v. Gopal Mudaliar 1983 (46) FLR 194.
The ESI Scheme is being implemented area-wise by stages. The Scheme is being
implemented in almost all union territories and states except Nagaland, Manipur, Tripura,
Sikkim, Arunachal Pradesh and Mizoram.
Administration of the Act
The provisions of the Act are administered by the Employees State Insurance Corporation. It
comprises members representing employees, employers, the central and state government,
besides, representatives of parliament and medical profession. A standing committee
constituted from amongst the members of the corporation, acts as an executive body. The
medical benefit council, constituted by the central government, is another statutory body that
advises the corporation on matters regarding administration of medical benefit, the
certification for purposes of the grant of benefits and other connected matters.
Registration
The employer should get his factory or establishment registered with the ESI Corporation
within 15 days after the Act becomes applicable to it and also obtain the employers code
number. Application should be made in Form 01 and after having being satisfied with the
application form, the regional office will allot a code number to the employer, which must be
quoted in all documents and correspondence.
Identity Card
An employee is required to file a declaration form upon employment in factory or

establishment to show that he is covered under the Act.
On registration every insured person is provided with a temporary identification certificate

which is valid ordinarily for a period of three months but may be extended, if necessary, for a
further period of 3 months. Within this period, the insured person is given a permanent
family photo identity card in exchange for the certificate. The identity card serves as a
means of identification and has to be produced at the time of claiming medical care at the
dispensary / clinic and cash benefit at the local office of the corporation. In the event of
change of employment, it should be produced before the new employer as evidence of
registration under the scheme to prevent any duplicate registration. The identity card bears
the signature/thumb impression of the insured person. Since medical benefit is also available
to the families of Insured persons, the particulars of family members entitled to medical
benefit are also given in the identity card affixed with a postcard size family photo. If the
identity card is lost, a duplicate card is issued on payment as prescribed.
Employers / Employees Contribution
Like most of the social security schemes, the world over, ESI scheme is a self-financing
health insurance scheme. Contributions are raised from covered employees and their
employers as a fixed percentage of wages. Presently covered employees contribute 1.75% of
the wages, whereas as the employers contribute 4.75% of the wages, payable to the insured
persons. Employees earning less than and up to Rs. 50 per day are exempted from payment of
contribution.
The contribution is deposited by the employer in cash or by cheque at the designated

branches of some nationalized banks. The responsibility for payment of all contributions is
that of the employer with a right to deduct the employees share of contribution from
employees wages relating to the period in respect of which the contribution is payable.
There are two contribution periods each of six months duration and two corresponding
benefit periods. Cash benefits under the scheme are generally linked with contribution paid.
Contribution period - 1st April to 30th September, its corresponding Cash Benefit period is
1st January to 30th June of the following year.
Contribution period - 1st October to 31st March, its corresponding Cash Benefit period is 1st
July to 31st December of the following year.
Certification of Return of Contribution by Auditor
Regulation 26 of Employees State Insurance (General) Regulations, 1950 was amended by

Notification No.N-12/13/1/2008-P&D to include certain details to be mentioned in the Return
of Contribution to be submitted by employers. The salient features of amendments made in
the Returns of Contribution are as under:-
1. Self-declaration by Employers regarding maintenance of records and

registers, submission of Declaration Forms, employees engaged directly or
through immediate employers and wages paid to the workers.
2. All the Employers employing 40 and more employees shall have to append
a certificate duty certified by a Chartered Accountant, in the revised
format of Returns of Contribution.
3. The Employers employing less than 40 employees will have to provide self-
certification without any certification from the Chartered Accountants in
Return of Contribution.
The Chartered Accountant should certify that he has verified the return from the records and
registers of the company.
This notification has come into force with effect from 01-04-2008.
Benefits under the Scheme
Employees covered under the scheme are entitled to medical facilities for self and
dependants. They are also entitled to cash benefits in the event of specified contingencies
resulting in loss of wages or earning capacity. The insured women are entitled to maternity
benefit for confinement. Where death of an insured employee occurs due to employment
injury or occupational disease, the dependants are entitled to family pension. Various benefits
that the insured employees and their dependants are entitled to, the duration of benefits and
contributory conditions thereof are as under:
Medical benefits
o From day one of entering insurable employment for self and
dependants such as spouse, parents and children own or adopted.
o For self and spouse on superannuation subject to having completed
five years in insurable employment on superannuation or in case of
having suffered permanent physical disablement during the course
of insurable employment.
Sickness benefits
o Sickness benefit is payable to an insured person in cash, in the
event of sickness resulting in absence from work and duly certified
by an authorised insurable medical officer/ practitioner.
o The benefit becomes admissible only after an insured has paid
contribution for at least 78 days in a contribution period of 6
months.
o Sickness benefit is payable for a maximum of 91 days in two
consecutive contribution period.
Extended sickness benefit
o Extended sickness benefit is payable to insured persons for the
period of certified sickness in case of specified 34 long-term
diseases that need prolonged treatment and absence from work on
medical advice.
o For entitlement to this benefit an insured person should have been
in insurable employment for at least 2 years. He/ she should also
have paid contribution for a minimum of 156 days in the preceding
4 contribution periods or say 2 years.
o ESI is payable for a maximum period of 2 years on the basis of
proper medical certification and authentication by the designated
authority.
o Amount payable in cash as extended sickness benefit is payable within
7 days following the submission of complete claim papers at the local office
concerned.
Enhanced sickness benefit

o This cash benefit is payable to insured persons in the productive
age group for under going sterilization operation, viz., vasectomy/
tubectomy.
o The contribution is the same as for the normal sickness benefit.
o Enhanced sickness benefit is payable for 14 days for tubectomy and
for seven days in case of vasectomy.
Maternity benefit
o Maternity benefit is payable to insured women in case of
confinement or miscarriage or sickness related thereto.
o For claiming this an insured woman should have paid for at least 70
days in 2 consecutive contribution periods i.e. 1 year.
o The benefit is normally payable for 12 weeks, which can be further
extended up to 16 weeks on medical grounds.
o The rate of payment of the benefit is equal to wage or double the
standard sickness benefit rate.
o The benefit is payable within 14 days of duly authenticated claim
papers.
Disablement benefit
o Disablement benefit is payable to insured employees suffering from
physical disablement due to employment injury or occupation disease.
Dependants benefit
o Dependants benefit [family pension] is payable to dependants of a
deceased insured person where death occurs due to employment or
occupational disease.
o A widow can receive this benefit on a monthly basis for life or till
remarriage.
o A son or daughter can receive this benefit till 18 years of age.
o Other dependants like parents including a widowed mother can also
receive the benefit under certain condition.
o The rate of payment is about 70% of the wages shareable among
dependants in a fixed ratio.
o The first installment is payable within a maximum of 3 months
following the death of an insured person and thereafter, on a
regular monthly basis.
Other benefits like funeral expenses, vocational rehabilitation, free supply
of physical aids and appliances, preventive health care and medical bonus.
Obligations Of Employers
1. The employer should get his factory or establishments registered with the
E.S.I. Corporation within 15 days after the Act becomes applicable to it,
and obtain the employers Code Number.
2. The employer should obtain the declaration form from the employees
covered under the Act and submit the same along with the return of
declaration forms, to the E.S.I. office. He should arrange for the allotment
of Insurance Numbers to the employees and their Identity Cards.
3. The employer should deposit the employees and his own contributions to
the E.S.I. Account in the prescribed manner, whether he has sufficient
resources or not, his liability under the Act cannot be disputed. He cannot
justify non-payment of E.S.I. contribution due to non- availability of
finance.
4. The employer should furnish a Return of Contribution along with the

challans of monthly payment, within 30 days of the end of each
contribution period.
5. The employer should not reduce the wages of an employee on account of

the contribution payable by him (employer).
6. The employer should cause to be maintained the prescribed

records/registers namely the register of employees, the inspection book
and the accident book.
7. The employer should report to the E.S.I. authorities of any accident in the
place of employment, within 24 hours or immediately in case of serious or
fatal accidents. He should make arrangements for first aid and
transportation of the employee to the hospital. He should also furnish to
the authorities such further information and particulars of an accident as
may be required.
8. The employer should inform the local office and the nearest E.S.I.
dispensary/hospital, in case of death of any employee, immediately.
9. The employer must not put to work any sick employee and allow him
leave, if he has been issued the prescribed certificate.
10.The employer should not dismiss or discharge any employee during the
period he/she is in receipt of sickness/maternity/temporary
disablement benefit, or is under medical
treatment, or is absent from work as a result of illness duly certified or due to
pregnancy or confinement.
Records To Be Maintained For Inspection By ESI

authorities
1. Attendance Register / Muster Roll

2. Salary / Wage Register / Payroll
3. EC (Employees & Employers Contribution) Statement
4. Employees Register
5. Accident Book
6. Return of Contribution
7. Return of Declaration Forms
8. Receipted Copies of Challans
9. Books of Account viz. Cash/Bank, Expense Register, Sales/Purchase
Register, Petty Cash Book, Ledger, Supporting Bills and Vouchers,
Delivery Challans (if any).
10.Form of annual information on company
Employees Insurance Court
Any dispute arising under the ESI Act will be decided by the Employees Insurance Court and
not by a Civil Court. It is constituted by the State Government for such local areas as may be
specified and consists of such number of judges, as the Government may think fit. It shall
adjudicate on the following disputes and claims.
Disputes as to:
i. Whether an employee is covered by the Act or whether he is liable to pay

the contribution, or
ii. The rate of wages or average daily wages of an employee, or
iii. The rate of contribution payable by the employer in respect of any

employee, or
iv. The person who is or was the principle employer in respect of any employee,
or
v. The right to any benefit and the amount and duration thereof, or
vi. Any direction issued by the Corporation on a review of any payment of

dependents benefit, or
vii. Any other matter in respect of any contribution or benefit or other due
payable or recoverable under the Act.
Claims as to
i. Recovery of contributions from the principal employer,
ii. Recovery of contributions from a contractor,
iii. Recovery for short payment or non-payment of any contribution under

section 68,
iv. Recovery of the value or amount of benefits received improperly under

section 70,
v. Recovery of any benefit admissible under the Act
No dispute shall be admitted unless the employer deposits with the Court 50% of the amount
due from him as claimed by the Corporation.
An appeal will lie to the High Court within 60 days against an order of the Employees
Insurance Court if it involves a substantial question of law.
Important Forms to be submitted under the Act
Form 01 : Employers' Registration Form

Form of Annual Information
Form 01(A) on Factory/Establishment
:
FINDINGS OF THE STUDY
1) It was found that 0% of respondents belongs to less than 20 years ,25 % of respondents
belongs to 21-25 years,41% of respondents belongs to 26-35 years,26% of the respondents
belongs to 36-50 years and 8% of the respondents belongs to above 50 years.
2)67% were Male Labours and 33% were Female Labours.
3) 60% of respondents fall in the category of Degree/Diploma,35% of respondents fall in the

category of Post graduate, 5% of respondents fall in the category of Others.
4) 22% of respondents have 1-5 yrs experience, 39% of respondents have 6-10 yrs experience,
30% of respondents have 11-20 yrs experience, 9% of respondents have above yrs experience.
5) 15.45% of respondents are having income 10000-20000/month, 33.64% of respondents are
having income 20001-30000/month, 38.18% of respondents are having income 30001-
40000/month, 12.73% of respondents are having income 40001-50000/month and 0% of
respondents having income above 50000/month.
6) 72.73% were aware of various welfare measures provided by the company and 27.27% were
not aware of various welfare measures provided by the company.
7) 45.45% of the respondents rated medical facility as the first most benefitted facility, 45.45%
of the respondents rated educational facility as the second most benefitted facility, 36.36% of the
respondents rated housing facility as the third most benefitted facility, 25.45% of the respondents
rated recreation facility as the fourth most benefitted facility and 35.45% of the respondents rated
travelling facility as the fifth most benefitted facility
8) For routine check up 24.55 % of the respondents are highly satisfied, 50.91 % of the
respondents are satisfied, for First aid 11.82 % of the respondents are highly satisfied, for
medicine supplied 16.36 % of the respondents are highly satisfied,For Ambulance service 12.73
% of the respondents are highly satisfie
9)Most of the respondents are satisfied with over all medical facility provided.
10).For the Reimbursement of tuition fee 30 % of the respondents are highly satisfied, 50.91 %
of the respondents are satisfied, 13.64 % of the respondents are neutral, 4.54 % of the
57
respondents are Dissatisfied and 0.90 % of the respondents are highly dissatisfied, for
scholarship 15.45 % of the respondents are highly satisfied, 51.82 % of the respondents are
satisfied, 26.36% of the respondents are neutral, 5.45% of the respondents are Dissatisfied and
0.90 % of the respondents are highly dissatisfied, for educational loan 11.82 % of the
respondents are highly satisfied, 51.82 % of the respondents are satisfied, 25.45% of the
respondents are neutral, 9.09 % of the respondents are Dissatisfied and 1.81% of the respondents
are highly dissatisfied.
11) Most of the respondents are satisfied with over all Educational facility provided.
12) For quality of food 15.45 % of the respondents are highly satisfied, 60% of the respondents
are satisfied, 15.45 % of the respondents are neutral, 4.54 % of the respondents are Dissatisfied
and 4.54 % of the respondents are highly dissatisfied, for quantity of food 12.73 % of the
respondents are highly satisfied, 57.27% of the respondents are satisfied, 24.55% of the
respondents are neutral, 5.45 % of the respondents are Dissatisfied and 0 % of the respondents
are highly dissatisfied, for price of the food 15.45 % of the respondents are highly satisfied,
54.54 % of the respondents are satisfied, 23.64 % of the respondents are neutral, 5.45 % of the
respondents are Dissatisfied and 0.90 % of the respondents are highly dissatisfied.
13) Most of the respondents are satisfied with the overall canteen facility provided
14)56.36% of respondents are satisfied with the housing facility provided and 43.64% of the
respondents are not satisfied with the housing facility provided.
15) 63.64 % of the respondents values Holiday Homes as beneficial,23.64% of the respondents
values clubs as beneficial recreation and 12.73 % of the respondents values sports events as a
beneficial recreation .
16)60% of the respondents rated first for Drinking water ,31.82 % of the respondents rated
second for seating arrangement,11.82 % of the respondents rated third for lighting,18.18% of the
respondents rated fourth for first aid appliances,13.64% of the respondents rated fifth for latrines
& urinals,13.64% of the respondents rated six forcanteen,18.18% of the respondents rated seven
for washing place,7.27% of the respondents rated eight for spittoons,12.73% of the respondents
rated nine for changing rooms and 17.27% of the respondents rated ten for rest rooms.
17) For 52.73 % of respondents welfare creates efficiency towards work,for 40% of the
respondents welfare improves Physical and Mental health, for 24.55% of the respondents
welfare promotes healthy Industrial relationship, for 19.09% of the respondents welfare creates
Loyalty towards the work and for 4% of respondents welfare increases standard of living.
58
18)Most of the Labours opined that welfare measures plays as a motivational factor.
19)67.27% of respondents are occasionally asked for the feedback about the welfare
measures,18.18% of respondents are often asked for the feedback and 14.55 % of the
respondents are never asked for the feedback.
20)18.18% the welfare requirement is determined by observation, 40% the welfare requirement
is determined by suggestion, 8.18% the welfare is determined by interview and 33.64% the
welfare requirement is determined by performance.
21) 65.45% of the respondents are satisfied with overall welfare measures provided and 34.55%
of the respondents are not satisfied with overall welfare measures provided.
59
SUGGESTIONS
1. The Management has to improve the quality and adequate items of the food which is one
of the most important basic amenities and it helps to satisfy the Labours.
2. The Number of spittoons provided at the work place is not sufficient, so the company has
to increase the number of spittoons which keeps the environment clean.
3. Rest room facility has to be sufficiently provided.
4. Housing facility can be improved.
5. Adequate number of first aid appliances has to be provided.
60
3.3 CONCLUSION
Labour welfare measures are advocated to maintain a strengthen manpower both

physically and mentally. The study of various welfare measures brings in to light that the present
measures taken by the company. The improvement in working condition are suggested to
improve effectiveness of the Labour welfares measures like canteen facility, drinking water,
spittoons, rest rooms and housing facilities which in turn would build the morale and increase
the productivity of the Labours .
61
BIBLIOGRAPHY
62
BOOKS REFERENCES:
1. Ganasekaran.P, 1ST Edition, 2008, Labour Laws, Aruma Pathippagam, Page No: 46-59.
2. Kothari C.R, 2ND Edition, 2004, Research Methodology Methods and techniques, New
age international (P) Ltd, Page No: 1-7.
3. Punekar.S.D, 12TH Edition, 1999, Labour Trade Unionism and Industrial Relations,
Himalaya Publishing House, Page No. 51-60.
WEBSITE REFERENCES:
www.google.com
www.wikipiedia.com
www.educationplus.com
www.scribd.com
CORPORATE REFERENCES:
www.icf.gov.in
63
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ABSTRACT

8 LASBOUR ABSENTEEISM, LABOUR

9 CASES IN LABOUR LAW

INTRODUCTION LABOUR WELFARE

The basic features of labor welfare measures are as follows:

Labour welfare measures increase the productivity of organization and promote

To know about the Constitutional provisions in Integral Coach factory .

To find whether Labor welfare helps in providing good industrial relations .

To know about the Labours satisfaction towards welfare measures.

To find out the facilities entitled by Integral Coach Factory

It helps in improving recruitment.

It improves moral & loyalty of workers.

It reduces labor turnover & absenteeism.

It helps in increasing productivity & efficiency by improving physical & mental

It helps in improving industrial relation & industrial peace.

welfare measures in Integral Coach Factory.

evaluated through this study.

availing the welfare measures.

To study the Labours welfare measures in different countries .

To identify the various welfare measures provided to the Labours.

To know their satisfaction towards the welfare measures

To understand how welfare measures improve the motivation of the

into various sections that are as follow:

Historical upbringing of labour welfare which is divided into two phases:

period Studies on labour

labour productivity in relation to labour welfare.

Studies on Cotton Textile Industry.

labour welfare by regulating hazardous working conditions and by advocating an eight

employer to abolish the system of imposing penalties on the defaulting workers. He

LABOUR WELFARE IN INDIA DURING

regulation of employment rather than improving the working conditions of labourers.

recommendations of Factory Commission set up by the Government of India, seasonal

Calcutta, The Postal Union in Bombay resulted in introduction of insurance schemes,

educational stipends and funeral expenses (Sarma, 2011, p.15).

in his book Discovery of India stated that:

Bombay, Ahmedabad, and elsewhere. Some of these dividends flowed to the

an incredibly low level of existence in 'filthy, disease-ridden hovels,' with no

window or chimney, no light or water supply, no sanitary arrangements. (Punekar

et al., 2012, p.156)

in case of any mis-happening during the course of employment.

Labour Investigation Committee (Rege Committee) set up in 1944 investigated the

for strengthening the enforcement machinery for effective implementation of various

conditions of workers, especially the female workers.

LABOUR WELFARE IN INDIA

DURING POST INDEPENDENCE

objectives to improve Employer-Labour Relations and to solve problems that hinder

the interest of labourers.

Schemes were made applicable to more workers. A comprehensive scheme known as

implementation of various statutory welfare provisions. The plan also recommended

employees of shops and commercial establishments in some centres. To protect the

Apprenticeship Training Programme and initiation of Vocational Training in Women s

improvement in working conditions of unorganized labour. During this period, education

promotion of a healthy industrial relations and encouragement of workers' participation in

directed towards skill formation, exchange of information on new job opportunities,

monitoring of working conditions, creation of industrial harmony for healthy industrial

conditions, better industrial relations, proper implementation of labour legislations, and

under employment, the promotion of regular wage employment opportunities and

3. Retrieved from http://planningcommission.nic.in/plans/planrel/fiveyr/default.html

and significantly stepping up growth in employment in manufacturing sector so that under

as industrialists have recognized the importance of labour and labour welfare to

increase productivity and for overall development of the economy.

STUDIES ON LABOUR WELFARE

with welfare measures in auto sector companies located in National Capital

Its Impact on Employee Satisfaction, reviewed the welfare provisions provided to