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    Industrial Relations

    Industrial relations

    Multidisciplinary field that studies the employment

    relationship - include the relationships and interactions

    between employers and employees Also called employment relations because of the importance

    of non-industrial employment relationships.

    Studies and examine various employment situations - Covers

    all aspects of the employment relationship, including human

    resource management, employee relations, and union-

    management (or labour) relations

    Industrial relations

    Industrial progress is impossible without cooperation of

    labours and harmonious relationships. Therefore, it is

    necessary to create and maintain good relations between

    employees (labour) and employers (management).

    Industry - any productive activity in which an individual (or

    a group of individuals) is engaged.

    relations - the relationships that exist within the industry

    between the employer and his workmen.

    Industrial relations & human relations

    Industrial relations deals with the study and practice of

    collective bargaining, trade unionism, and labour-

    management relations

    Human resource management is a separate, largely distinct

    field that deals with nonunion employment relationships and

    the personnel practices and policies of employers.

    Terms in industrial relations

    Industry

    Any systematic activity carried on by co-operation between an

    employer and his workmen for the production, supply or

    distribution of goods or services with a view to satisfy human

    wants or wishes by investing a capital with a motive to make

    any gain or profit.

    An industry is a whole range of activities that are carried on

    by an employer with the help of his employees and labours

    for production and distribution of goods to earn profits

    Terms in industrial relations

    Employer

    An employer can be defined as:-

    a person or business that pays a wage or fixed payment to other

    person(s) in exchange for the services of such persons .

    a person who directly engages a worker/employee in

    employment.

    any person who employs, whether directly or through

    another person or agency, one or more employees in any

    scheduled employment in respect of which minimum rates of

    wages have been fixed.

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    Terms in industrial relations

    Employee

    Employee is a person who is hired by another person or business

    for a wage or fixed payment in exchange for personal services

    and who does not provide the services as part of an independent

    business.

    An employee is any individual employed by an employer.

    A person who works for a public or private employer and

    receives remuneration in wages or salary by his employer

    while working on a commission basis, piece-rates or time rate.

    Terms in industrial relations

    Employment

    The state of being employed or having a job.

    Labourmarket

    The market in which workers compete for jobs and employers

    compete for workers. It acts as the external source from

    which organizations attract employees. These markets occur

    because different conditions characterize different

    geographical areas, industries, occupations, and professions

    at any given time.

    Scope of industrial relations

    The scope or industrial relations include the following:

    Collective bargaining

    Machinery for settlement of industrial disputes

    Standing orders

    Workers participation in management

    Unfair labour practices

    Collective bargaining

    Process of negotiations between employers

    and a group of employees aimed at reaching

    agreements that regulate working conditions.

    Interests of the employees are commonly

    presented by representatives of a trade union

    to which the employees belong.

    Collective agreements reached by these

    negotiations usually set out wage scales,

    working hours, training, health and safety,

    overtime, grievance mechanisms and rights to

    participate in workplace or company affairs

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    Industrial disputes

    Defined as a conflict or difference of opinion between management and

    workers on the terms of employment

    Disagreement between an employer and employees' representative;usually a trade union, over pay and other working conditions and can

    result in industrial actions

    When an industrial dispute occurs, both the parties, that is the

    management and the workmen, try to pressurize each other.

    The management may resort to lockouts while the workers may resort to

    strikes, picketing or gheraos.

    Objectives of industrial relations

    The main of industrial relations system are:-

    To bring better understanding and cooperation between employers and

    workers.

    To establish a proper channel of communication between workers and

    management.

    To ensure constructive contribution of trade unions.

    To avoid industrial conflicts and to maintain harmonious relations.

    To safeguard the interest of workers and the management.

    To work in the direction of establishing and maintaining industrial

    democracy.

    Objectives of industrial relations

    To establish and promote the growth of an industrial democracy based on

    labour partnership in the sharing of profits and of managerial decisions,

    To eliminate or minimize the number of strikes, lockouts and gheraos by

    providing reasonable wages, improved living and working conditions

    To improve the economic conditions of workers in the existing state of

    industrial managements and political government.

    Socialization of industries by making the state itself a major employer

    Objectives of industrial relations

    Vesting of a proprietary interest of the workers in the industries in which they

    are employed

    To ensure workers participation in decision-making.

    To increase the morale and discipline of workers.

    To ensure better working conditions, living conditions and reasonable wages.

    To develop employees to adapt themselves for technological, social and

    economic changes.

    To make positive contributions for the economic development of the country.

    Main aspect of Industrial Relations

    labour Relations, i.e. relations between union and management.

    Employer-employees relations, i.e. relations between management and

    employees.

    Group relations, i.e. relations between various groups of workmen.

    Community or Public relations, i.e. relations between industry and society.

    Promotions and development of healthy labour-managements relations.

    Maintenance of industrial peace and avoidance of industrial strife

    Development of true industrial Democracy.

    Significance of industrial relation

    The healthy industrial relations are key to the progress and success.

    Uninterrupted production The most important benefit of industrialrelations is that this ensures continuity of production. This means,

    continuous employment for all from manager to workers.

    Reduction in Industrial Disputes Good industrial relations reduce the

    industrial disputes. Disputes are reflections of the failure of basic human

    urges or motivations to secure adequate satisfaction or expression which

    are fully cured by good industrial relations.

    High morale Good industrial relations improve the morale of the

    employees. Employees work with great zeal with the feeling in mind that

    the interest of employer and employees is one and the same, i.e. to

    increase production.

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    Significance of industrial relation

    Mental Revolution The main object of industrial relation is a

    complete mental revolution of workers and employees. The

    industrial peace lies ultimately in a transformed outlook on

    the part of both.

    Reduced Wastage Good industrial relations are maintained

    on the basis of cooperation and recognition of each other. It

    will help increase production.

    Causes of Poor Industrial Relations

    Mental inertia on the part of management and labour;

    An intolerant attitude of contempt of contempt towards the workers on the

    part of management.

    Inadequate fixation of wage or wage structure;

    Unhealthy working conditions;

    Indiscipline;

    Lack of human relations skill on the part of supervisors and other managers;

    Desire on the part of the workers for higher bonus or DA and the

    corresponding desire of the employers to give as little as possible;

    Principle of Good Industrial Relations

    The willingness and ability of management and trade unions to deal with the

    problems freely, independently and with responsibility.

    Recognition of collective bargaining.

    Desirability of associations of workers and managements with the Government

    while formulating and implementing policies relating to general economic and

    social measures affecting industrial relations.

    Fair redressal of employee grievances by the management

    Providing satisfactory working conditions and payment of fair wage.

    Introducing a suitable system of employees education and training.

    Developing proper communication system between management and employees.

    To ensure better working conditions, living conditions and reasonable wages.

    To develop employees to adapt themselves for technological, social and economic

    changes.

    To make positive contributions for the economic development of the country.

    Factors of industrial relations

    Industrial Relation encompasses all such factors that influence behavior of people at

    work.

    1. Institution: It includes government, employers, trade unions, unions federations or

    associations, government bodies, labour courts, tribunals and other organizations

    which have direct or indirect impact on the industrial relations systems.

    2. Characters : It aims to study the role of workers unions and employers federations

    officials, shop stewards, industrial relations officers/ manager, mediator/conciliators /

    arbitrator, judges of labour court, tribunal etc.

    Factors of industrial relations

    3. Methods : Focus on collective bargaining, workers participation in the

    Industrial Relation schemes, discipline procedure, grievance re-dressalmachinery, dispute settlements machinery working of closed shops, union

    reorganization, organizations of protests through methods like revisions of

    existing rules, regulations, policies, procedures, hearing of labour courts,

    tribunals etc.

    4. Contents : Includes matter pertaining to employment conditions like pay,

    hours of works, leave with wages, health, and safety disciplinary actions, lay-

    off, dismissals retirements etc., laws relating to such activities, regulations

    governing labour welfare, social security, industrial relations, issues

    concerning with workers participation in management, collective bargaining,

    etc.

    Industrial Relations Machinery

    Comprises of

    Conciliation

    Arbitration

    Adjudication

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    Conciliation

    Alternative dispute resolution (ADR) process whereby the parties to a

    dispute (including future interest disputes) agree to utilize the services of

    a conciliator (mediator), who then meets with the parties separately in an

    attempt to resolve their differences.

    They do this by lowering tensions, improving communications,

    interpreting issues, providing technical assistance, exploring potential

    solutions and bringing about a negotiated settlement.

    has no legal standing, and the conciliator usually has no authority to seek

    evidence or call witnesses, usually writes no decision, and makes no

    award.

    Arbitration

    A form of alternative dispute resolution (ADR), is a legal technique for the

    resolution of disputes outside the courts, where the parties to a dispute

    refer it to one or more persons (the "arbitrators", "arbiters" or "arbitral

    tribunal"), by whose decision (the "award") they agree to be bound.

    It is a settlement technique in which a third party reviews the case and

    imposes a decision that is legally binding for both sides

    Arbitration is often used for the resolution of commercial disputes,

    particularly in the context of international commercial transactions

    The use of arbitration is also frequently employed in consumer and

    employment matters, where arbitration may be mandated by the terms of

    employment or commercial contracts.

    Adjudication

    legal process by which an arbiter or judge reviews evidence and

    argumentation including legal reasoning set forth by opposing parties or

    litigants to come to a decision which determines rights and obligations

    between the parties involved. Three types of disputes are resolved

    through adjudication:

    Disputes between private parties, such as individuals or corporations

    Disputes between private parties and public officials

    Disputes between public officials or public bodies

    What's the difference?

    The difference between arbitration and mediation

    In mediation a neutral facilitator works with all parties to assist them to

    reach a solution. Arbitration is a formal process in which an independent

    third party hears from all parties and makes a decision about how to

    resolve the dispute.

    The difference between arbitration and adjudication

    The aim of adjudication is to resolve disputed issues in order to enable

    work to continue (either indefinitely or while awaiting the decision of a

    judge or arbitrator). Arbitration is a more formal process, and the

    arbitrator's decision is legally binding.

    Worker Participation And Employee

    Involvement

    The word participation means sharing the decision-making

    power with the lower ranks of the organization in an appropriate

    manner.

    Has a unique motivational power and a great psychological value

    promotes harmony and peace between workers and

    management.

    When workers participate in organizational decisions, they are

    able to see the big picture clearly, i.e., how their actions would

    contribute to overall growth of the company.

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    Worker Participation And Employee

    Involvement

    Workers participation in management encompasses the following:

    Provides scope for employees in the decision making of the organisation.

    participation may be at the shop level, departmental level or at the top

    level.

    participation includes the willingness to share the responsibility by works

    as they have a commitment to execute their decisions.

    participation is conducted through the mechanism of forums which

    provide for association of workers representatives.

    The basic idea is to develop self control and self discipline among works,

    so that the management become AutoManagement.

    Need for workers participation

    Reduced industrial unrest

    Reduced misunderstanding

    Increased organization balance

    Higher productivity

    Increased Commitment

    Industrial democracy

    Less resistance to change

    The scheme has economic, psychological, ethical and political objectives.

    Psychological objective - to secure full recognition of the workers -

    Association of worker with management provides him with a sense of

    importance, involvement and a feeling of belongingness.

    Socially, the need for participation arises because modern industry is a

    social institution with the interest of employer, the share-holders, the

    community and the workers equally invested in it.

    Ethical objective of participation is to develop workers free personality

    and to recognize human dignity.

    Political objective of participation is to develop workers conscious of their

    democratic rights on their work place and thus bring about industrialdemocracy.

    Objectives of Workers Participation inManagement

    Objectives of Workers Participation in

    ManagementThe main objectives ofworkers participation in management include:

    i. To promote increased productivity for the advantage of the organization,

    workers and society at large;

    ii. To provide a better understanding to employees about their role and place

    in the process of attainment of organizational goals;

    iii. To satisfy the workers social and esteem needs; and

    iv. To strengthen labour management co-operation and thus maintaining

    industrial peace and harmony.

    v. To develop social education for effective solidarity among the workingcommunity and for tapping latent human resources.

    Objectives of Workers Participation in

    Management

    vi. An ideological point of view to develop self-management in industry.

    vii. An instrument for improving efficiency of the company and establishingharmonious industrial relations.

    viii. To build the most dynamic human resource.

    ix. To build the nation through entrepreneurship and economic development.

    x. To improve the quality of working life by allowing the workers greater influenceand involvement in work and the satisfaction obtained from work.

    xi. Development of human personality

    xii. Development of leader from within the industry.

    xiii. Development of working class.

    xiv. Creation of a just egalitarian (equal) society.

    xv. Facilitate self-development of worker.

    Formal & informal participation

    The participation of workers may be formal or informal.

    Formal participation - it takes the forms of formal structures such as

    Works Committee, Shop Councils, Production Committee, Safety

    Committee, Joint Management Councils, Canteen Committee etc.

    Informal participation- may be such as the supervisor consulting the

    workers for granting leave, overtime, and allotment of worked or transfer

    of workers from one department to another.

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    Workers participation in management

    in India

    Entered the Indian scene in the year, 1920, whenMahatma Gandhi had suggested that workers

    should participate and contribute to the

    organization and also share its prosperity.

    Workers participation in management

    in India

    The various forms of workers participation in management

    currently prevalent in the country are:

    1) Works Committee2) Joint Management Councils (JMCs 1958)

    3) Joint Councils

    4) Unit councils

    5) Plant Council

    (6) Shop Councils

    (7) Workers Representation on Board of Management

    (8) Workers Participation in Share Capital

    Workers Participation in Management

    in India

    Even after taking all these initiatives, WPM in India was a failure.

    The factors responsible for the failure are:

    Attitude of the management towards the scheme is not

    encouraging. The preventatives of workers are not given due

    recognition by the management.

    The attitude of trade unions towards the schemes is negative as

    they consider these schemes are reducing the power of Trade

    Unions. Some Trade Unions boycott Joint Management Council

    meetings.

    Suggestion to make WPM Schemes

    Successful in India

    The success of any scheme of participative

    management is dependent on some of the basic points

    regarding work environment ,which are as under:

    There should be a strong, demographic and

    representative unionnism,without any political forces

    and multiplicity in unions.

    Suggestion to make WPM Schemes

    Successful in India

    Formation of mutually agreed and clearly spelt objectives

    for participation, with emphasis on autonomy and

    satisfaction of higher needs of the workers.

    Creation of working environment conducive to participation

    ,without much rigid hierarchical structure and close

    supervision.

    Ensure complete sharing of information which shall ensure

    effective consultations and formation of policies.

    Suggestion to make WPM Schemes

    Successful in India

    Both parties should develop their attitude and

    outlook, and must have full faith in the soundness

    of this concept.

    Rights of each other are recognized and protected

    by the presence of legal framework, thought is not

    used often.

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    Labour welfare Involves all those activities of employer

    which are directed towards providing theemployees with certain facilities andservices in addition to wages or salaries.

    Labour welfare has the following objectives:

    To provide better life and healthto the workers

    To make the workers happy andsatisfied

    To relieve workers from industrialfatigue and to improveintellectual, cultural and materialconditions of living of theworkers.

    Labour welfare

    labour welfare includes various facilities, services and amenities provided to

    workers for improving their health, efficiency, economic betterment and

    social status.

    Welfare measures are in addition to regular wages and other economic

    benefits available to workers due to legal provisions and collective

    bargaining

    Labour welfare schemes are flexible and ever-changing. New welfare

    measures are added to the existing ones from time to time.

    Welfare measures may be introduced by the employers, government,

    employees or by any social or charitable agency.

    The purpose of labour welfare is to bring about the development of the

    whole personality of the workers to make a better workforce.

    Labour welfare

    The important benefits of welfare measures can be summarized as follows:

    They provide better physical and mental health to workers and thuspromote a healthy work environment

    Facilities like housing schemes, medical benefits, and education andrecreation facilities for workers families help in raising their standards ofliving. This makes workers to pay more attention towards work and thusincreases their productivity.

    Employers get stable labour force by providing welfare facilities. Workerstake active interest in their jobs and work with a feeling of involvementand participation.

    Employee welfare measures increase the productivity of organization andpromote healthy industrial relations thereby maintaining industrial peace.

    The social evils prevalent among the labours such as substance abuse, etcare reduced to a greater extent by the welfare policies.

    Social security

    System of protection or support provided by the society or government to

    workers and their families in time of sudden calamity, sickness,unemployment, injuries, industrial accidents, disablement, old age or othercontingencies.

    Social security programmes include

    Medicare and insurance benefits

    Medical help at the time of injury and accident and provision financialcompensation and relief.

    Pension in case of disablement

    Unemployment insurance or allowance

    Maternity benefits

    Death payments and family pension

    Retirement benefits or old age relief etc.

    Social Security Programmes in India

    In pre-independence period, a beginning was made in social

    security with the passing of the Workmens CompensationAct, 1923.

    After independence, enacted a number of laws and has

    introduced and implemented many schemes to provide social

    security to industrial workers..

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    Social securitySocial security is guaranteed in our Constitution under Acts. 39, 41 and 43.

    The Employees State Insurance Act, 1948 provided sickness benefit and extended

    sickness benefit; maternity benefit; disablement benefit; dependants benefit; (5)

    funeral benefit; and medical benefit.

    The Employees Provident Funds and Miscellaneous Provisions Act, 1952 and the

    Maternity Benefit Act, 1961, are also social security measures

    Workmens compensation act, 1923- became effective from July 1, 1924 -provided for

    payment of compensation to workmen and their dependents in case of injury, accident

    and some occupational diseases arising our of and in the course of employment and

    resulting in disablement and death.

    Payment of Gratuity Act, 1972 - provide a scheme for the payment of gratuity to

    employees employed in factories, mines, oil fields, plantations, ports, railways, shops

    and establishments

    Social security

    The Factories Act., 1948, provides for health, safety, welfare, employment of

    young persons and women, hours of work for adults and children, holidays, leave

    with wages etc.

    The Contract Labour (Regulation and Abolition) Act of 1970, a piece of social

    legislation, provides for the abolition of contract labour wherever possible and to

    regulate the conditions of contract labour in establishments or employments

    The Minimum Wages Act, 1948, provides for the fixation of minimum rates of

    wages by the Central or State governments within a specified period for workers

    employed in certain scheduled employments

    INDUSTRIAL SAFETY & WELFARE PROVISION

    Industrial safety Factories act 1948 caters for the industrial safety of the

    worker

    The Act has been enacted primarily with the object of

    protecting workers employed in factories against industrial

    and occupational hazards.

    Industrial safety

    Main features of act are:

    Before starting any industry,written permission of thegovernment is required alongwith relevant particulars of theindustry.(at least 15 daysnotice is required)

    Complete securityarrangements shall be made.Children shall not beemployed in big or dangerousmachines

    Employee Health and Safety For smooth functioning of an

    organization, the employer has toensure safety and security of his

    employees.

    Health and safety form an integral

    part of work environment- should

    enhance the well being of employees

    and thus should be accident free

    A construction worker hanging in the rope

    without any protection at a construction site in

    Chennai.

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    Employee Health and Safety

    Industrial safety and health may comprise measures for :

    (i) Protecting the workers/employees against any health hazardsarising our of their work or the condition under which it iscarried on;

    (ii) Fostering the adaptation of workers to the jobs and workenvironment and thus contributing towards the employeesphysical as well as mental adjustments; and

    (iii) Promoting the establishment and maintenance of thehighest possible degree of physical mental and social well-being of the workers.

    Employee Health and Safety

    Normal health hazards may be caused by-

    Chemical substancesat the work place such as carbon monoxide, carbon

    dioxide, sulphur dioxide, sulphuric acid, acetic acid etc. - Inhaling causes

    respiratory or heart diseases, cancer and neurological disorders they mayshorten life expectancy;

    Biological factors including sickness caused by bacteria, fungi, viruses,

    dietary deficiencies, allergies, emotional strains due to fear, anxiety etc.

    and

    Environmental factors including illness due to radiation, noise, vibrations

    and shocks or atmospheric conditions such as inadequate ventilation,

    lighting arrangement or very high or low temperature at the work place.

    Employee Welfare Schemes The statutory welfare schemes include the following provisions:

    Drinking Water: At all the working places safe hygienic drinking water should be

    provided.

    Facilities for sitting: In every organization, especially factories, suitable seating

    arrangements are to be provided.

    First aid appliances: First aid appliances are to be provided and should be readily

    assessable so that in case of any minor accident initial medication can be provided

    to the needed employee.

    Latrines and Urinals: A sufficient number of latrines and urinals are to be provided

    in the office and factory premises and are also to be maintained in a neat and

    clean condition.

    Canteen facilities: Cafeteria or canteens are to be provided by the employer so as

    to provide hygienic and nutritious food to the employees.

    welfare provisions

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    Employee Welfare Schemes

    Spittoons: In every work place, such as ware houses, store places, in the dock area

    and office premises spittoons are to be provided in convenient places and same

    are to be maintained in a hygienic condition.

    Lighting: Proper and sufficient lights are to be provided for employees so that theycan work safely during the night shifts.

    Washing places: Adequate washing places such as bathrooms, wash basins with

    tap and tap on the stand pipe are provided in the port area in the vicinity of the

    work places.

    Changing rooms: Adequate changing rooms are to be provided for workers to

    change their cloth in the factory area and office premises. Adequate lockers are

    also provided to the workers to keep their clothes and belongings.

    Rest rooms: Adequate numbers of restrooms are provided to the workers with

    provisions of water supply, wash basins, toilets, bathrooms, etc.

    A spittoon (or spittoon) is a container made for spitting into, especially by users of chewing and

    dipping tobaccowelfare provisions

    Employee Welfare Schemes

    Many non statutory welfare schemes may include the following schemes:

    Personal Health Care (Regular medical check-ups): Some of the

    companies provide the facility for extensive health check-up Flexi-time: The main objective of the flextime policy is to provide

    opportunity to employees to work with flexible working schedules.

    Flexible work schedules are initiated by employees and approved by

    management to meet business commitments while supporting employee

    personal life needs

    Employee Assistance Programs: Various assistant programs are arranged

    like external counseling service so that employees or members of their

    immediate family can get counseling on various matters.

    welfare provisions

    Employee Welfare Schemes

    Harassment Policy: To protect an employee from harassments of any kind,

    guidelines are provided for proper action and also for protecting the

    aggrieved employee.

    Maternity & Adoption Leave Employees can avail maternity or adoption

    leaves. Paternity leave policies have also been introduced by various

    companies.

    Medi-claim Insurance Scheme: This insurance scheme provides adequate

    insurance coverage of employees for expenses related to hospitalization

    due to illness, disease or injury or pregnancy.

    Employee Referral Scheme: In several companies employee referral

    scheme is implemented to encourage employees to refer friends and

    relatives for employment in the organization.

    welfare provisions

    Labour Legislation in India

    Labour Legislation refers to all laws of the

    Government which have been enacted to

    provide social and economic security to the

    labour or workers.

    The evils of industrialization have led to the

    labour legislation. Now the state has a

    direct interest in the industrial peace and

    prosperity

    These acts are aimed at reduction of

    production losses due to industrial disputes

    and to ensure timely payment of wagesand other minimum amenities of the

    workers

    Need of labour Legislation

    The basic principle of industrial

    legislation is to ensure social justice tothe workers .

    The object of legislation is :

    the equitable distribution of

    profits and benefits adding from

    industry between industrialists

    and workers

    affording protection to the

    workers against harmful affects to

    their health safety and morality

    Principles of Labour Legislation :

    There are four principles on which the labour legislation is based

    viz,

    Social Justice

    Economic Justice

    National economy

    International conventions

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    Labour laws

    Varied body of law applied to such matters as

    employment, remuneration, conditions of work,

    trade unions, and industrial relations.

    Includes social security and disability insurance as

    well

    Elements of labour law

    The basic subject matter of labour law can beconsidered under nine broad heads: Employment; Individual employment relationships

    Wages and remuneration;

    Conditions of work, health, safety, and welfare;

    Social security

    Trade unions and industrial relations;

    The administration of labour law;

    Special provisions for particular occupational or other groups

    1) Employees State Insurance (ESI) Act,

    1948

    Provides for certain benefits to employees in case of sickness,

    maternity and employment injury.

    It applies to all factories employing ten or more persons and

    carrying on a manufacturing process with the aid of power or

    employing 20 or more persons and carrying on a

    manufacturing process without the aid of power

    Employees State Insurance (ESI) Act, 1948

    The benefits provided to the employees under the scheme are:

    (1) sickness benefit and extended sickness benefit;

    (2) maternity benefit;

    (3) disablement benefit;

    (4) dependents' benefit;

    (5) funeral benefit; and

    (6) medical benefit. All the benefits are provided in cash

    2) Workmens compensation Act,

    1923

    The Workmens Compensation Act, aims to provide workmenand/or their dependents some relief in case of accidentsarising out of and in the course of employment and causingeither death or disablement of workmen.

    It provides for payment by certain classes of employers totheir workmen compensation for injury by accident.

    3) Payment of Wages Act, 1936

    To ensure regular and prompt payment of wages and to

    prevent the exploitation of a wage earner by prohibitingarbitrary fines and deductions from his wages.

    Applicable for payment of wages to persons employed in any

    factory.

    Wages include all remuneration, bonus, or sums payable for

    termination of service, but do not include house rent

    reimbursement, light vehicle charges, medical expenses, TA,

    etc.

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    4) Minimum wages Act, 1948

    The Minimum wages Act of 1948 was passed for the

    welfare of labour and provided for fixing the

    minimum rate of wages of labour.

    Aims at making provisions for the statutory fixation

    for the minimum rate of wages in number of

    industries where there are extensive chances for the

    exploitation of labour

    Role of state in labour welfare

    The improvement of labour welfare and increasing productivity

    with reasonable level of social security is one of the prime

    objectives concerning social and economic policy of the

    Government.

    The resources have been directed through the Plan programmes

    towards skill formation and development, monitoring of working

    conditions, creation of industrial harmony through infrastructure

    for health, industrial relations and insurance against disease,

    accident and unemployment for the workers and then families.

    Role of state in labour welfare

    Various welfare measures adopted by the

    state are:

    Factories act 1948

    Trade union act

    Payment of wages act

    Minimum wages act

    Workmen compensation act

    Contract labour act

    Role of labour welfare officer

    Labour welfare officer is appointed as per the requirement of section 49 ofthe Factories Act

    1) To act as a negotiating officer2) To shape and formulate labour policies3) To establish contact4) To deal with wages and employment5) To prevent from anti social activities6) To bring about peaceful settlement7) To comply with provision of factory to promote relation between thefactory and workers9) To encourage formation of committees10) To secure provision of amenities

    11) To help factory management in regulation of Leave12) To secure welfare provisions13) To advice factory management