LABOUR WELFARESECTION - AAnswer any FIVE questions.Q1 Define labour welfare.A1 Labour welfare is an important facet of industrial relations the extra dimension giving satisfaction in the worker in a way which even a good wage cannot.With the growth of industrialization and mechanization it has acquired added importance.The worker,both in industry and agriculture cannot cope with the pace of modern life with minimum sustenance amenities .He needs and added stimulus to keep body and soul together.Employers have also realized the importance of their role in providing these extra amenities.And yet they are not always able to fulfil workers demands however reasonable they might be.They are primarily concerned with the viability of the enterprise.Labour welfare,though it has been proved to contribute to efficiency in production,is expensive.Each employer depending on his priorities gives varying degrees of importance to labour welfare.It is because the government is not sure that all employers are progressive minded and will provide basic welfare measures that it introduces statutory legislation from time to time to bring about some measure of uniformity in the basic amenities available to industrial workers.The term Labour welfare is very comprehensive and includes various types of activities undertaken for the economic,social, intellectual or moral benefit of the labour community.The activities are so varied that the concept of labour welfare may vary from country to country.The royal commission on labour in india(1931) rightly pointed out:”The term welfare as applied to the industrial workers is one which must necessarily be elastic bearing a somewhat different interpretation in one country from another according to the different social customs,the degree of industrialization and the educational development of the worker.Hence it is difficult to give a precise definition of the welfare work.Mr Arther James Todd rightly points out.A serious of shortly diverse opinion exists on the motives and merits of industrial welfare work.Concept of Labour Welfare:- The term welfare suggests many ideas meanings and connotations,such as the state of well being health happiness prosperity and the development of human resources.It is desirable state of existence involving the physical mental moral and emotional well-being.The social concept of welfare implies the welfare of man his family and his community.There is interconnection among these three aspects in the sense that all the three work together,or individually supplement one another in a three dimensional approach each mutually serving as end and means.Approaches to Labour Welfare:-Let us now consider the evolution of the idea of labour welfare and its place in society.Since in this field old ideas die hard the same problem has been approached from different view points:-

(1) Paternalistic Approach:- The paternalistic approach to labour welfare can be traced back to the beginning of the modern industrial system when there was hardly any difference between management and ownership and the owners could have first hand information of the living and working conditions of workers.Some of them motivated by Philanthropic,Himanitarian and Religious Consideration,did much to improve the lot of working masses.They felt that they were responsible for the moral and material well being of persons employed by

them.However their influence was limited because the attitude of the public and general conditions were unfavourable.

(2) Industrial Efficiency Approach:- It was an outcome of the growth of big companies which brough about a separation of functions of management and ownership and increased the distance between the owners and the workers.Personnal relationship was replaced by impersonal rules with bigness arose the problem of commitment and efficiency and the solution was attempted by formulating welfare schemes.The assumption underlying this approach is that commitment and efficiency of workers is increased by bringing about favourable changes in the environmental conditions and by improving working and living conditions.Thus charity and philanthropy is replaced by enlightened self-interest.It is true that working and living conditions are important factors which influence the commitment and efficiency of workers,but the are not the only factors and it would be rash to establish any direct relationship between labour welfare measures on the one hand and efficiency and commitment on the other.As we have said attitude may be more important and welfare measures introduce with an ulterior motive may not result in the accepted response from workers.The basic defect in this approach is that it is meachanistic in nature and ignores the fact that the problems of care,maintenance and upkeep of machines are different from the problems of labour welfare.This is one of the reasons why trade unions have looked at management sponsored welfare measures with suspicion.But the second reason,which is more important from the point of view of employers,is that welfare measures as a means to increase efficiency may not be successful in the long run.Once such measures are introduced they are taken for granted and thus do not have a continuous incentive effect.Welfare becomes unreasonable when (a) It is done for ulterior motives and used specially as an incentive since it then becomes and example of the greatest reason to do the right thing for the wrong reason(b) When it reaches the stage of managers racking their brains to find new piece of welfare to act as stimulus to work and vie with anything supplied by other companies.

(3) Social Approach:-According to the social approach,labour welfare is a part of general welfare.Here labour welfare is an end in itself and development loyalty towards the employer or increase in efficiency is only incidental.They cannot be ignored but welfare measures are not motivated by them.Good working and living conditions,pleasant surroundings,recreational services and other amenties which promote better living are desirable in themselves.As a matter of fact,welfare is an objective of social and economic policy.When labour welfare is looked at from this point of view the whole perspective changes and the purpose of welfare services becomes to serve man alleviate the burdens of his struggle for existence and to reduce the hardships of life.Since there is no ulterior motive and it is not linked with charity it will not cause any resentment and suspicion among workers.

Definitions of Labour Welfare:-The Oxford Dictionary defines labour welfare as efforts to make life worth living for worker.Labour welfare is also understood to means such services facilities and amenties which may be established in or in the vicinity of undertakings to enable persons employed there in to perform their work in healthy and

congenial surrounding and to provide them with amenities conductive to good health and good morale.A resolution adopted by the international labour conference at its 39th session in june 1956 has enumerated some of these services and amenties.These include

(1) feeding facilities in or near the undertaking(2) rest and recreation facilities and(3) transportation to and from work where ordinary public transport is inadequate or

impracticable.For our part we prefer to include under welfare prefer to include under welfare activities anything done for the intellectual,physical moral and economic betterment of the workers where by employer by government or by other agencies over and above what it laid down by law or what is normally expected as part of contractual benefits for which the workers may have bargained..Thus under this definition we may include housing medical and educational facilities nutrition facilities for rest and recreation,co-operative societies,day nurseries and crèches provision of sanitary accommodation holiday with pay,social insurance measures undertaken voluntarily by employers alone or jointly with workers including sickness and maternity benefit schemes provident funds,gratuties and pensions etc.Objectives of Labour Welfare:-The objectives of welfare activities are partly humanitarian partly economic and partly civic.It is humanitarian,as it aims at providing certain facilities and amenities of life to the workers which they themselves cannot provide.It is economic,because it improves the efficiency of the workers and keeps the workers contented and minimises the chances of the conflict.It is civic because it is a means to promote a sense of responsibility and dignity among the workers and to make them better citizens.Initially,humanitarianism or social awareness motivated labour welfare activities.Driven by the desires for greater efficiency and output from workers and with the view to attracting better workers employers offer extra incentives in the form labour welfare schemes such schemes also make it possible for employers to persuade workers to accept mechanization. Sometimes labour welfare is used by employers to compact the influence of outside agencies on their employees.Labour welfare measures are often undertaken with a view to avoiding payment of tax on surplus and simultaneously building up better relations with employees.The desires to show off and advertise the concern for labour or also factors which play their part in persuading employers to go in for labour welfare schemes.The bigger the organization the greater is the expenditure incurred on such adertisements.Thus the motives that lies behind labour welfare schemes are often complex for human nature varies from person to person certain motivating characteristics however domainate in each successive period of the development of labour welfare movement and this is clearly seen in the broad historical perspective of industrial welfare.If often happens that if an organization gets interested in labour welfare and intiates measures for this purpose other organization spread of labour-welfare movement in and around that particular industrial area.Regarding the beneficial effects of welfare work the labour investigation committee points pout three important benefits:-

(1)Welfare measures such as educational facilities sports entertainment’s etc.Have beneficial effects on the sentimental atmosphere in the factory as well as on the maintenance of industrial peace.When the workers feel that the employer and the state are interested in the day-to-day life and would like to make their lot happier in every possible way that tendency to grouse and grumble will gradually disappear.(2) Better housing co-operative societies canteens,sickness and maternity benefits,provident fund,gratuities and pensions and such other things are bounds to create a feeling among the workers that they have a stake in the industry as much as any one else and the present situation under which labour turn over and absenteesism prevail and the workers are constantly trekking to their village homes in search of social security and recreation will yield to a new situationin which the working class becomes more stabilized and economically efficient .(3) There is the social advantage even apart from the humanitarian value.The provision of canteens where cheep clean and balanced food is available to workers must improve their physique entertainments must reduce the incidence of vices medical and maternity and child welfare must improve the health of workers and their families and bring down the rates of general maternal and infantmortality and educational facilities must increase their mental efficiency and economic productivity.The Indian industrial workers has often been condemned as lazy and inefficient but the Bombay textile labour enquiry committee rightly observes.At is axiomatic that in all pursuits a highstandard of efficiency can be expected only from persons who are physically fit and free from mental worries that is only from persons who are properly trained properly housed properly fed and properly clothed welfare work increases the productive efficiency of the workers and infuses in them a new spirit a self-realisation and consciousness.Theories of Labour Welfare:- Seven theories constituting the conceptual framework of labour welfare have so far been outlined.These are:-

(1) The policy Theory:- This is based on the contention that a minimum standard of welfare is necessary for labourers.Here the assumption is that without compulsion periodical supervision and fear of punishment employers will not provide even the minimum welfare facilities for workers.Apparently this theory assumes that man is selfish and self centered and always tries to achieve his own ends even at the cost of welfare of others.If wealth or authority or both help him to be in an advantageous position he uses it for his own advantage,exploiting those who are under him.According to this theory owners and managers of industrial undertakings get many opportunities for this kind of exploitation.The welfare state has therefore to step into prevent this kind of exploitation and coerce industrialists to offer a minimum standard of welfare to their workers.Such interference is in the interest of the progress and welfare of the state as well.Laws are enacted to compel management’s to provide minimum wages,cogenial working conditions reasonable hours of work and social security.The policy theory therefore lead to

(1) The passing of laws relating to the provisions of minimum welfare for workers

(2) Periodical supervision to ascertain that these welfare measures are provided and implemented and

(3) Punishment of employers who evade or disobey these laws

(2) The Religious Theory:- This is based on the concept that man is essentially a religious animal Even today many acts of man are related to religious sentiments and beliefs.These religious feelings sometimes prompt and employer to take up welfare activities in the expectation of future benefit either in this life or in somefuture life.Thus according to this theory and good work is considered an investment both the benefactor and beneficiary are rewarded.We come across many trusts and charitable institutions in india which function on the basis of this belief. Another aspect of the religious theory is the atonement aspect.Some people take up welfare work in a spirit of atonement for their sins.Thus,the benevolent acts of welfare are treated either as an investment or an atonement.

(3) The Philanthropic Theory:- This theory is based on man’s love for mankind in Greed Philos means loving and authropes means man.So philanthropic means loving mankind.Man is believed to have an instinctive urge by which he strives to remove the suffering of other and promote their well-being.This drive may be a rather powerful one and may impel him to perform noble sacrifices.When some employers have compassion for their follow men they may undertake labour welfare movement began in the early years of the industrial revolution with the support of such philanthropists as Robert owen.In india,mahatma Gandhi was one of the eminent philanthropists who strove for the welfare of labour.

(4) The Trusteeship Theory:- This is also called the paternalistic theory of labour welfare according to which the industrialist or employer holds the total industrial estate properties and profits accruing from them in trust In other words he uses it for himself for the benefit of his workers and also for society workers are like minors who are ignorant because of lack of education and are not able to look after their own interest .Employers therefore have the moral responsibility to look after the interests of their wards who are workers.There is naturally no legal binding but since it is a moral obligation it is supposed to be no less affective.The main emphasis here is on the idea that employers should provide out of the funds under their control for the well-being of their workers,Mahatama Gandhi very strongly advocated this trusteeship theory.

(5) The Placating Theory:- This theory is based on the fact that labour groups are becoming demanding and militant and are more conscious of their rights and privileges than ever before.Their demand for higher wages and better standards cannot be ignored.According to this theory timely and periodical acts of labour welfare can appease the workers.They are some kind of pacifiers by way of friendly gesture.Sincerity may lack in these programmes though discontent be bought off in this

manner.Psychologically this theory is unsound though it ha often been acted upon to secure the worker’s co-operation.

(6) The Public Relations Theory:- This theory provides the basis for an atmosphere of goodwill between labour and management and also between management and the public.Labour welfare programme,under this theory work a a sort of an advertisement and help an industrialist to build up good and healthy public relations.This theory is based on the assumption that te labour welfare movement may be utilized to improve relations between management and labour.An advertisement or exhibitin and labour welfare programme may help an industrialist to project to the ublic a good image of his company.His sales as well as industrial relation may improve as a result a two-fold benefit to the company.

(7) The functional theory:- This is also called the efficiency theory.Here welfare work is used a means to secure preserve and develop the efficiency and productivity of labour.It is obvious that if an employer takes good care of his workers,they will tend to become more efficient and will thereby step up production.But all this will depend on a healthy collaboration between union and management and heir mutual concern for the growth and development of industry.Higher production is of benefit for both management ad their mutual concern for the growth and development of industry.Higher production is of benefit for both management and labour.The latter will get better wages and perhaps a share in the profits.This is the functional aspect of welfare having efficiency as its object,which increases productivity.This theory is a reflection of contemporary support for labour welfare.It can work well if both the parties have an identical in mind that is higher production through better welfare.This will encourage labour’s participantion in welfare programes.

Principles and Problems of Labour Welfare:- Labour welfare is dependent on certain basic principles,which must be kept in mind and properly followed to achieve a successful implementation of welfare programmes.(1) Principle of Adequacy of Wages:- Labour welfare measures cannot be a substitute for wages.Workers have a right to adequate wages.But high wage rates alone cannot create a healthy atmosphere nor bring about a sense of commitment on the part of workers.A combination of social welfare emotional welfare and economic welfare together would achieve good results.(2) Principle of Social Rsponsibility of Industry:- Industry according to this principle has an obligation or duty towards its employees to lok after their welfare.The constitution of India in its directive principles of state policy also emphasises the aspect of labour welfare.(3) Principle of Re-personalisation:- The development of the human personality is given here as the goal of industrial welfare which according to this principle should counteract baneful effects of the industrialsystem.Therefore it is necessary to implement labour welfare services both inside and outside the factory that is provide intramural and extramural labour welfare services.

(4) Principle of Totality of Welfare:- This emphasises that the concept of labour welfare must spread throughout the hierarchy of an organisation.Emloyees at all levels must accept this total concept of labour welfare because without this acceptance labour welfare programmes will never really get off the ground.(5) Principle of Coordination or Integration:- This plays an important role in the success of welfare services.Here again welfare is a total concept.From this angle a co-ordinated approach will promote a healthy development of the worker in his work home and community.This is essential for the sake of harmony and continuity in labour welfare services.(6) Principles of Association or Democratic Values:- The co-operation of the worker is the basis of this principle consultation with and the agreement of workers in the formulation and implementation of labour services are very necessary for their success.Moreover workers who have a part in planning these programmes get keenly interested in their proper implementation.This principle is based on the assumption that the worker is a mature and rational individual.Industrial democracy is the driving force here.Workers also develop a sense of pride when they are made to feelthat labour welfare programmes are created by them and for them.(7) Principle of Responsibility:- This recognizes the fact that both employers and workers are responsible for labour welfare.Trade Unions too,are involved in these programmes in a healthy manner for basically labour welfare should belong to the domain of the trade unions.Further whe responsibility in shared by different group labour welfare work becomes simpler and easier.In brief we can say that the following are some of the principles to be kept in mind for successful implementation of any labour welfare programme in an organisation:- (1) The labour welfare activities should provide the entire hierarchy of an organisation.Management should be welfare oriented at every level.(2) The employer hold not bargain labour welfare as a substitute for wages or monetary incentives.In other words the workers have a right the adequate wages in addition to welfare measure.(3) There schedule be proper co-ordination harmony and integration of all labour welfare services in an undertaking.(4) The labour welfare work of an organisation must be administrative viable and essentially development oriented.(5) The management should ensure co-operation and active participation of unions and workers in formulating and implementing labour welfare programmes.(6) There should be periodical assessment or evaluation of welfare measures and necessary timely improvements on the basis of feedback..Financing:- (1) The capacity of the economy puts the ultimate limit to the extent of welfare measures to be provided to the workers or any other section of society.(2) It is difficult to specify who bears the costs of welfare services.Even where employers finance the welfare activities either voluntarily or under the requirements of law no body can say who meets the ultimate costs the employers,the consumers or the workers.The employers do strive to pass on the burden to te consumers by raising prices or to the workers by delaying wage ncreases.(3) It is really difficult to make the employers pay for the welfare amenities out of their profit.It is the community which pays for the welfare services and the employer is merely

an agency for collecting the cost from the community and spending it o thewelfare of workers.Need of Labour Welfare:- Labour welfare has become a necessity because of the very nature of the industrial system.The approach to this problem or movement differed from country to country according to the degree of development in aparticular country.However, the need for labour welfare in some way or the other is realized all over the world because of the socio-economic conditions and problems which the industrial society was thrown up.Labour welfare measures are required in India because the country is passing through a transitional phase when a rural an agriculture based society is changing into an urban and industry based society.

Q2 Why is labour welfare important for any organisation?A2 IMPORTANCE OF LABOUR WELFARE IN INDIA

Compared to other countries, India has much greater need and importance of labor welfare work. Such a condition is caused by certain deficiencies in Indian labor force that are not found in its counterpart in other countries. It is these defects of deficiencies that increase the importance of labor welfare activity in the country. Briefly, the following are the reasons why labor welfare work in India assumes greater importance than in other countries.

1. LACK OF STRONG LABOUR UNION MOVEMENT:

In India, even today the workers are no united into a class. Keeping in view the numbers, labor Union movement is still in its infancy. Even in the labor union that does exist, there is a lack of enlightened leadership, and there is no unity between these unions themselves. In absence of properly organized labor Union the workers can neither, place their demands effectively before the employer, nor can they think clearly and systematically of their own interests. As this is force lacking in India, it is essential that the welfare of laborers in the country be efficiently looked after by the employers and the Government.

1. ILLITERACY:

As compared with other countries, the percentage of educated workers is very low, most of them being illiterate. Consequently, they are not in a position to receive advanced industrial training, understand the problems in industries their own interests and those of nation as a whole. This can prove a source of harm not only to the workers but also to the country. Hence efficient, and become responsible citizens of the country.

1. PROBLEM OF ABSENTEEISM AND MIGRATION:

Compared to the workers of other countries the Indian laborer is more restless and does tendentious towards frequent migration because life in the town does not provide for his needs, and the atmosphere in general does not suit him. Also due to inadequate level of wages the laborer cannot comfortably settle down in one place. This may in turn also give rise to Absenteeism. This workers migratory tendency can be curbed by providing him with adequate facilities and conditions, and this also shows a positive effect over the absenteeism in the factory.

1. LOW LEVEL OF HEALTH AND NUTRITION:

The Indian worker as compared with his counterpart in most European countries is unhealthy

and ill fed. This shows a definite affect over the production potential. Hence, he is very great need of inexpensive nutritive food and good facility in case of hospitalization.

1. EXTREME POVERTY:

The percentage of people under the poverty line in our country is comparatively high than other countries. So the standard of living is very low. An Indian workers is unable to provide a healthy living for his family and in the case off female workers she is not provide with assistance in case of need. Hence, the labor welfare has much to do in the country. It must assist them by providing them maternity benefits, in old age i.e., provident fund, pensions and gratuity etc.

1. LACK OF TRAINING:

As the percentage of trained workers in India is very low, it is necessary to have training facilities for such a vast labor force.

1. LACK OF HEALTHY RECREATION:

Healthy recreation is also at a premium in the country, the efficiency of labor force is diminished by energy being employed in all kinds of undesirable channels. Hence, it is essential that recreation and enjoyment of a healthy kind be provided.

1. INDUSTRIAL BACKWARDNESS OF INDIA:

In India, industrial progress is being aimed through the medium of the five year plans, but industrial progress is dependent on the efficiency of the labor force. The welfare work motivates the workers and maintains efficiency and productivity. So, we can say that the importance of these activities is great for India in comparison to western countries.

"During the pre-independence period, industrial relations policy of the British Government was one of laissez faire and also of selective intervention. There were hardly any labour welfare schemes. After independence, labour legislations have formed the basis for industrial relations and social security. These legislations have also provided machinery for bipartite and tripartite consultations for settlement of disputes.Soon after independence, the government at a tripartite conference in December 1947 adopted the industrial truce resolution. Several legislations, including the following, were enacted to maintain industrial peace and harmony: Factories Act, 1948, Employees State Insurance Act, 1948 and Minimum Wages Act, 1948. The payment of bonus act was passed in 1965.In the early 1990s, the process of economic reforms was set in motion when the government introduced a series of measures to reduce control on industries, particularly large industries. The workers have opposed economic liberalisation policy for fear of unemployment while entrepreneurs have welcomed it in the hope of new opportunities to improve Indian industries. The new economic policy has directly affected industrial relations in the country, because the government has to play a dual role, one of protecting the interest of the workers, and second to allow a free interplay of the market forces. Economic reforms, by removing barriers to entry, have created competitive markets. Fiscal stabilisation has resulted in drastic reduction in budgetary support to the public sector commercial enterprises while exposing these enterprises to increased competition from private sector.Labour and Labour Welfare sub-sector consists of six main programmes viz. Labour Administration, Rehabilitation of bonded labour, Assistance to Labour Cooperatives, Craftsmen training programme, Apprenticeship training programme, Employment Services and Sanjay Gandhi Swavalamban Yojana.Manpower, employment policy and labour welfare in India: post-independence developments:Many researches has been done in the following themes, such as

1. Manpower: trends and magnitude.2. Employment policies and programmes.3. Labour welfare: legal framework and initiatives.4. Women workers: legislations and empowerment.5. Industrial relations and labour laws.6. Restructuring of labour laws: the great debate.7. Labour laws and welfare: India and ILO.8. Labour reforms: India and WTO. II. India's Five Year Plans at a glance. III. Edited extracts from India's Five Year Plans on employment and labour related matters (I plan to X plan including mid-term appraisal of the X Plan).Strengthening of Medical wing of the Directorate of Industrial Safety and HealthThere are different types of industries in Maharashtra like heavy and light engineering, heavy and light chemical industries, petrochemicals, pesticides, fertilizers, textile and Electronic Industries. All these pose their own potential hazards, which may cause acute and chronic side effects on the health of the workers. In Maharashtra, the chemical factories which include heavy chemical complexes or small chemical factories which may produce acute effects on the health of the workers to such an extent that it may result in death. Pesticides spilled on the body of the workers are equally dangerous.Improvement of communications, mobility of Factory InspectorsFor the quick transmission of messages relating to factory accidents, gas leaks, fires and disasters in the area a broad network of office/ residential telephones is an essential-requisite for the Factory Inspector, the concerned Dy.Chief Inspector of Factories, the Chief Inspector and from C.I.F.to higher authorities. Quick transmission of such messages to the area Factory Inspector and others not only facilitates a prompt inquiry into the mishap and its causes but also enables the concerned authorities to bring into action the various control measures in the case of disaster. An outlay for Tenth Five Year Plan 2002-2007 is Rs.150.00 lakh. Out of that an outlay Rs.5.00 lakh is provided for Annual Plan 2002-2003.Tribal sub-plan areaLabour and labour welfareLabour sector addresses multi-dimensional socio-economic aspects affecting labour welfare, productivity, living standards of labour force and social security. To raise living standards of the work force and achieve higher productivity, skill up gradation through suitable training is of utmost importance. Manpower development to provide adequate labour force of appropriate skills and quality to different sectors is essential for rapid socioeconomic development. Employment generation in all the productive sectors is one of the basic objectives. In this context, efforts are being made for providing the environment for self-employment both in urban and rural areas. During the Ninth Plan period, elimination of undesirable practices such as child labour, bonded labour, and aspects such as ensuring workers' safety and social security, looking after labour welfare and providing of the necessary support measures for sorting out problems relating to employment of both men and women workers in different sectors has received priority attention.The Central Board of Workers Education through its regional offices is striving to educate the workers to help to avoid wasteful expenditure, adopting cost effectiveness and by enhancing productivity of qualitative nature. They have been conducting the following programmes:

←← Rural Awareness Programme. ← Functional Adult Literacy Classes. ← Short-term programmes for the unorganised sector to educate them on their rights,

ethics and hygiene. ← Participative Management. ← Orientation Courses for Rural Educators. ← Leadership Development Programme for Rural Workers.

Q3 List out the ( labour welfare facilities) and various facilities provided by the government.A3 Following labour welfare facilities are provided :-(1) Health Provisions in factory act:-Cleanlines:- Section 11 lays down that every factory shall be kept clean and free from effuvia arising from any drain privy or other nuisance.The following precautions shall be taken in particular:-

a) accumulation of dirt and refuse shall be removed daily by sweeping or by any other effective method from the floors and benches of work rooms and from staircases and passages and disposed of in a suitable manner.(b) the floor of every work room shall be cleaned at least once in every week by washing using disinfectant where necessary or by some other effective method.(c) where a floor is liable to become wet in the course of any manufacturing process to such extent as incapable of being drained effective means of drainages shall be provided and maintained.(d) all inside walls and partitions all ceilings or tops of rooms and all walls sides and tops of passages and staircases shall:-(1) where they are painted otherwise than with washable waterpaint or varnished be repainted or revarnished at least once in every period of five years.(2) where they are painted with washable waterpaint be repainted with at least one coal of such paint at least once in every period of three years and washed at least once in every period of six months.(3) where they are painted or varnished or where they have smooth impervious surfaces,be cleaned at least once in every period of fourteen months by such method as may be prescribed. (4) in any other case,be kept white washed or colour washed and the white washing or colour washing shall be carried out at least once in every period of fourteen months.(dd) all doors and windows frames and other wooden or metallic frame work and shutters shall be kept painted or varnished and the painting or varnishing shall be carried out at least once in every period of five years.(e) the date on which the processes required by clause(d) are carried out shall be entered in the prescribed register.

Disposal of waste and effluents:- Section 12(1) lays down that effective arrangements shall be made in every factory for the treatment of wastes and effluents due to the manufacturing process carried out therein so as to render them innocuous and for their disposal.Section 12(2) provides that the state government may make rules prescribing the arrangements to be made under sub-section(1) or requiring that the arrangements made in accordance with sub-section(1) shall be approved by such authority as may be prescribed.

Ventilation and Temperature:- According to section 13(1) effective and suitable provision shall be made in ecery factory for securing and maintaining in every work room.(a) adequate ventilation by the circualation of fresh air and (b) such a temperature as will secure to workers therein reasonable conditions of comfort and prevent injury to health. It further provided that walls and roofs shall be of such material and so designed that such temperature shall not be exceeded but kept as low as practicable.Where the nature of the work carried on in factory involves or is likely to involve,the production of excessively high temperatures such adequate measures as are practicable shall be taken to protect the workers therefrom by separating the process which produces such temperatures from the work room by insulating the hot posts or by other effective means.Section 13(2) empowers the state government to prescribe a standard of adequate ventilation and reasonable temperature for any factory or class or description of factories or party thereof.The state government may also direct that proper measuring instruments at such places and in such position as may be specified,shall be provided and such records as may be prescribed shall be maintained.According to section 13(3) if it appears to the chief inspector that excessively high temperatures in any factory can be reduced by the adoption of suitable measures he may without prejudice to the rules made under sub-section(2) serve on the occupier and order in writing specifying the measures which in his opinion should be adopted and requiring them to be carried out before a specified date.

Dust and Fume:- Section 14(1) deals with effective measures which should be adopted to keep the work-rooms free from dust and fume.Every factory in which b reason of the manufacturing process carried on there is given off any dust or fume or other impurity of such a nature and to such an extent as is likely to be injurious or offensive to the workers employed therein or any dust in substantial quantities effective measures shall be taken to prevent its inhalation and accumulation in any work room.If any exhaust appliance is necessary for the above purposes ,it shall be applied as near as possible to the point of origin of the dust,fume or other impurity and such point shall be enclosed as far as possible.According to section

14(2) in any factory no stationery internal combustion engine shall be operated unless the exhaust is conducted into the open air and no other internal combustion engine shall be operated in any room unless effective measures have been taken to prevent such accumulation of fumes there from as are likely to be injurious to workers employed in the room.

Artifical Humidification:- Section 15(1) lays down that in respect of all factories in which the humidity of the air is artificially increased the state government may make rules-(a) prescribing standards of humidification.(b) regulating the methods used for artificially increasing the humidity of the air.(c) directing prescribed tests for determining the humidity of the air to be correctly carried out and recorded.(d) prescribing methods to be adopted for securing adequate ventilation and cooling of the air in the work room Section 15(2) lays down that in any factory in which the humidity of the air is artificially increased the water used for the purpose shall be taken from a public supply or oher source of drinking water,or shall be effectively purified before it is so used.According to section 15(3),if it appears to an inspector that the water ued in a factory for increasing humidity which is required to be effectively purified,under sub-section (2) is not effectively purified he may serve on the manager of the factory and order in writing specifying the measure which in his opinion should be adopted and requiring them to be carried out before a specified date

Over Crowding:- Section 16 deals with the general provision relating to over crowding.According to sub-section(1) no room in any factory shall be over crowded to an extent injurious to the health of the workers employed therein.Sub section (2) lays down that there shall be in every work room of a factory in existence on the date of commencement of this act at least 9.9 cubic meters and of the factory built after the commencement of this act at least 14.2 cubic meters of space for every worker employed therein.No account shall be taken of any speace which is more than 4.2 meters above the level of the floor of the room for the purpose of this sub-section.Section 16(3) lays down that if the chief inspector by order in writing so requires there shall be posted on each work room of a factory a notice specifying the maximum number of workers who may in compliance with the provisions of the section,be employed in the room.According to section 16(4) the chief inspector may be order in writing exempt subject to such conditions as he may think fit it impose any work room from the provisions of this if he is satisfied that compliance therewith in respect of the room is uneccessary in the interest of the health of the workers employed therein.

Lighting:-Section 17(1) provides that in every part of the factory where workers are working or passing there shall be provided and maintained sufficient and suitable lighting,natural artifical or both.Section 17(2) lays down that in every factory all glazed windows and sky-lights used for the lighting of the work room shall be kept clean on both the inner and outed surfaces and so far as compliance with the provisions of any rules made under sub-section(3) of section 13 will allow,free from obstruction. Section 17(3) requires that in every factory effective provisions shall so far as practicable,be made for the prevention of:- (a) glare either directly from a source of light or by reflection from a smooth or polished surface.(b) the formation of shadows to such an extent as to cause eye-strain or the risk of accident to any worker.Section 17(4) lays down that the state government may prescribe standards of sufficient and suitable lighting for factories or for any class or description of factories or for any manufacturing process.

Drinking Water:-Section 18 deals with provisions relating to arrangements for drinking water in factories sub-section(1) provides that in every factory effective arrangements shall be made to provide and maintain at suitable points conveniently situated for all workers employed therein a sufficient supply of wholesome drinking water.Sub-section(2) provides that all such points shall be legibly marked drinking water in a language understood by a majority of the workers employed in the factory and no such point shall be situated within six meters of any washing place,urinal latring spittoon open drain carrying sullage or effluent or any other source of contamination unless a shorter distance is approved in writing by the chief inspector.Sub-section(3) lays down that in every factory wherein more than two hundred and fifty workers are ordinarily employed,provisions shall be made for cooling drinking water during hot weather by effective means and for distribution thereof .Sub-section(4) authorizes the state government to make rules in respect of all factories or any class or description of factories for securing compliance with the

provisions of sub section(1),(2) and (3).The state government may also make rules for the examination by the prescribed authorities of the supply and distribution of drinking water in factories.

Laterines and Urinals:-Section 19(1) provides that in every factory:- (a) sufficient latrine and urinal accommodation of prescribed type shall be provided conveniently situated and accessible workers at all times while they are at the factory.(b) separate enclosed accommodation shall be provided for male and female workers.(c) such accommodation shall be adequately lighted and ventilated and no latrine or urinal shall unless specially exempted in writing by the chief inspector communicate with any workroom except through and interviewing open space or ventilated passage.(d) all such accommodation shall be maintained in a clean and sanitary condition at all times.(e) sweepers shall be employed whose primary duty would be to keep clean latrines urinals and work-places. Sub-section(2) of section 19 lays down that in every factory wherein more than two-hundred and fifty workers are ordinarily employed.(a) all latrine and urinal accommodation shall be of prescribed sanitary types.(b) the floor and internal walls upto a height of ninety centimeters of the latrines and urinals and the sanitary block shall be laid in glazed tiles or otherwise finished to provide a smooth polished impervious surface.(c) without prejudice to the provisions of clauses(d) and (e) of sub-section(1) the floors, partitions of the walls and blocks so laid or finished and the sanitary pans of latrine and urinals shall be thoroughly washedand cleaned at least once in every seven days with suitable detergents or disinfectants or with both.Sub-section(3) of section19 provides that the state government may prescribe the number of latrines and urinals to be provided in any factory in proportion to the number of make and female workers ordinarily employed therein and provide for such further matters in respect of sanitation in factories including the obligation of workers in this regard,as it considers necessary in the interests of the workers employed therein.

Spittoons:- Section 20(1) lys down that in every factory there shall be provided a sufficient number of spittoons in convenient places.They shall be maintained in a clean and hygienic condition.Section 20(2) authorizes the state government to make rules prescribing the type and the number of spittoons to be provided and their location in any factory and to provide for such further matter relating to their maintenance in a clean and hygienic condition.Section 20(3) lays down that a person shall not spit within the premises of a factory except in the spittoons provided for the purpose and a notice containing this provision and the penalty for its violation shall be prominently displayed at suitable places in the premises.It is further provided by section 20(4) that whoever spits in contravention of sub section(3) shall be punishable with fine not exceeding five rupees.

Washing facilities:- The importance of washing facilities was emphasised by the royal commission in the following words:- The provision of suitable washing facilities for all employees is desirable and here may factories are deficient.The workers who live in crowded areas have inadequate facilities for washing at their homes and bathing facilities would add to their comfort,health and efficiency.We recommended that for workers engaged in dirty process the provision for washing place and water should be made obligatory.Section 42(1) provides that in every factory:- (a) adequate and suitable facilities for washing shall be provided and maintained for the user of workers.(b) separate and adequately screened facilities shall be provided for the use of male and female workers.(c) such facilities shall be conveniently accessible and shall be kept clean. Section 42(2) authorizes the state government to prescribe,in respect of any factor or class or description of factories or any manufacturing process standards of adequate and suitable facilities for washing.

Facilities for storing and drying clothing:-Section 43 empowers the state government to make rules in respect of any factory or class or description of factories requiring the provision therein of suitable places for keeping clothing not worn during working hours and for the drying or were clothing.Facilities for sitting:- According to section 44(4) in every factory suitable arrangements for sitting shall be provided and maintained for all workers obliged to work in a standing position in order that they may take advantage of any opportunities for rest which may occur in the course of their work.According to section 44(2) if in the opinion of the chief inspector,the workers of any factory engaged in a particular manufacturing process or working in a particular room are able to do their work efficiently in a sitting position he may by order in writing require the occupier of the factory to provide before a specified date such seating arrangements as may be practicable for all workers so engaged or working.Section 44(3)

empowers the state government to declare by notification in the official gazette that the provisions of sub-section(1) shall not apply to any specified factory or class or description of factories or to any specified manufacturing process.

First Aid Appliances:- According to section 45(1) in every factory shall be provided and maintained so as to be readily accessible during all working hours first aid boxes or cupboards equipped with the prescribed contents and the number of sch boxes or cupboards to be provided and maintained shall not be less than one for every one hundred and fifty workers ordinarily employed at any one time in the factory.Section 45(2) provides that nothing except the prescribed content shall be kept in a first-aid box or cupboard.According to section 45(3) each first-aid box or cupboard shall be kept in the charge of a separate responsible person who hold a certificate in first aid treatment recognised by the state government and who shall always be readily available during the working hours of the factory.Section 45(4) says that in every factory wherein more than five hundred workers are ordinarily employed thre shall be provided and maintained an ambulance room of the prescribed size containing the prescribed equipment and in the chage of such medical and nursing staff as may be prescribed and those facilities shall always be made readily available during the working hours of the factory.

Canteens:-The state government may according to section 46(1) make rules requiring that in any specified factory wherein more than two hundred and fifty workers are ordinarilyemployed a canteens shall be provided and maintained by the occupier for the use of the workers.Thus sub-section confers general rule-making power upon the state government and sub-section(2) of section 46 authorised the state government to make rules providing for:- (a) the date by which canteen shall be provided.(b) the standards in respect of construction accommodation,furniture and other equipment of the canteen .(c) the foodstuffs to be served therein and the charges which may be made thereof.(d) the constitution of a managing committee for the canteen and representation of the workers the management of the canteen.(dd) the items of expenditure in the running of the canteen which are not to be taken into account in fixing the cost of foodstuffs and which shall be borne by the employer.(e) delegation to the chief inspector,subject to such conditions as may be prescribed of the powers to make rules under clause(c). It is true that so far as the employer is concerned where the staff canteen has to be provided in pursuance of this section it must be run on a no profit basis as prescribed by sub-rule(2) of rule 85. But a contractor who conducts the canteen not out of any philanthropic considerations but for profit carries on a trade of keeping a catering establishment,for which he must obtain a licence if provided under the relevant status.

Shelters,Rest Rooms and Lunch Rooms:- Section 47(1) lays down that in every factory wherein more than one hundred and fifty workers are ordinarily employed adequate and suitable shelters or rest rooms and a suitable lunch room with provision for drinking water where workers an eat meals brought by them shall be provided and maintained for the use of the workers.But any canteen maintained in accordance with the provisions of the section 46 shall be regarded as part of the requirements of this sub-section and where a lunch room exists no worker shall eat any food in the work-room.Section 47(2) requires that the shelters or rest rooms to be provided under sub-section,(1) shall be sufficiently lighted and ventilated and shall be maintained in a cool and clean condition.Section 47(3) provides that the state government may:- (a)prescribe the standards in respect of construction accommodation,furniture and other equipment of shelters,rest rooms and lunch room to be provided under this section.(b) by notification in the official gazette,exempt any factory or class or decription of factories from the requirements of this section.

Creches:- The royal commission stressed upon the desirability of amenit of crèches as follows:-Creches are not uncommon in factories employing women.In many of the factories employing women in substantial number no crèches have een provided.As a result of their absence,infants are taken into the mills and found lying on sacking in bobbin boxes and other unsuitableplaces exposed to the noise and danger of moving machinery and a dust laden atmosphere.Section 48(1)lays down that in every factor wherein more than thirty women workers are ordinarily employed there shall be provided and maintained a suitable room or rooms for the use of children under the age of six years of such women.According to sectin 48(2) such room shall provide adequate accommodation shall be adequately lighted and ventilated shall be maintained in a clean and sanitary condition shall be under the charge of women trained in the cre of children and infair.Section 48(3) empowers the state government to make rules:- (a) prescribing the location and the

standards in respect of construction accommodation furniture and other equipment of room to be provided,under this section.(b) requiring the provision in factories to which this secion applies of additional facilities for the care of children belonging to women workers including suitable provision of facilities for washing and changing their clouning.(c) requiring the provision in any factory of free milk or refreshment or both for such children.(d) requiring that facilities shall be given in any factory for the mother of such children to feed them at the necessary intervals.

Workers Education scheme in India:- One of the important objectives of worker’s education in most developing countries is the development of human resources.The workers education programme is of recent origin.The government of India in co-operation with ford foundation appointed an international committee of expert for advisce on the scheme.The committee submitted its report in March 1957.On the basis of the committees recommendations a semi-autonomous agency the central board of workers education(CBWE) was set up in 1958 to administer and implement the scheme.The CBWE was constituted by having representatives from the central organizations of both workers and employers,central and state governments and educational institutions.The functions of the central board office are administrative training and induction of new officers and the reparation of literature etc,to be used to educate workers.Regional and sub-regional centres were opened to conduct educational activities in important industrial centres.Thus the function of educational activity was decentralized.

The scheme:- The programme of the workers education consists of three stages.In the first stage the education offiers in the service of the central board of workers education are trained and later posted to regional cenres.At the second stage workers(selected numbers) are trained at the regional and sub-regional centres by the education officers as worker teachers.The third stage starts when the worker teachers complete their training and go back to their factories or places of work to train the rank and file of workers.Objectives of the scheme:- The workers education scheme aims at achieving the following four objectives.(1) to develop stronger and more effective trade unions through better trained officials and more enlightened members for the strengthening of bonds of loyalty to the unions.(2) to develop leadership from the rank and file and to promote the growth of democratic process and trade union organization and administration.(3) to equip organized labour to take its place in democratic society and to fulfil its social and economic responsibilities and (4) to promote among workers a great understanding of the problem of their economic environment and their privileges and obligations as union members and officials and citizens.

Employee Health and Safety:- The personnel point of view suggests that the health and safety of employees should be major concerns of management.Health and safety are closely connected.The accident record is a significant index of individual health,both physical and mental as well as of the quality of supervision and the level of teamwork.Moreover accidents involving injury are connected with morale,both as cause and effect.Thus aside from the purely practical consideration that accidents and ill-health reduce productive efficiency and occasion irregularity of attendance,management is concerned with keeping the accident rate at the lowest possible figure and health at the highest possible level.To operate adequate programs for health and safety is one of managements most effective means of demonstrating its continuing interest in the welfare of every employee,regardless of his organizational status.Features of a company health program:- After reviewing the characteristics advantages and risk of alternative plans for a company health program,many employers have decided that providing limited medical services to help employees maintain good health is a wise investment in the organizational health which depends on the attitudes and activities of all regular members.In planning a program which will meet organizational responsibilities but not be unduly expensive,the following working principles selected from those advocated by the american college of surgeons make a good starting point.(1) An organized plan:- In addition to a company doctor(or to the part-time services of alocal doctor) an adequate staff usually includes a registered nurse and clerical serice(ranging from part-time work by one clerk to full time work for several persons,according to the size of the organization and the scope to the program).Many concerns which do not retain a company doctor find it a good investment to employ a company nurse.In addition to administering first aid and dispensing advice and medicine to alleviate minor ailments a nurse can subject to approval by the chief executive-greatly aid supervisors and serve as an unofficial member of the personnel department.For this purpose she needs ability to use her opportunities wisely for interviewing- for example, when employees seek her advice or,if it seems desirable when she

makes occasional home visits to see and advise an employee who is ill.Most of the specific information she obtains in such interviews should be kept confidential.No homevisit should be made except with full agreement from the patient or at the request of his family.A serious risk to guard against is even the suspicion that such visiting is camouflaged police work or espionage.(2) Adequate facilities:-(According to the size of the company these facilities may include first aid and an emergency dispensary.Whatever facilities there are should of course be fully manned during all working hours.).(a) A pre-employment medical examination.(b) efficient care of individual injuries and assistance with occupational diseases.(c) First aid and advice onmedical problems.(d) Elimination and control of health hazards.(e) Adequate and accessible medical records.(f) Adequate supervision for sanitation and health.(g) Ethical and co-operative relations with family physicians.(h) Use(or recommendation) of approved hospitals.(3) Usefulprocedures:- For efficient operation of such services te following procedures are needed:- (a) Methods designed to uncover causes and to promote prevention of ill health.(b) Specific Assignments of responsibility for making decisions and-if part of the plan-for providing care,doing research carrying out follow-up tests and interviews.(c) Arrangements whereby responsible officials keep up with current advances in knowledge gained by specialist in the field(for example by reading and by attending conferences).(d)Preparation use and improvement of suitable forms(especially if any research is part of the program).(e) arrangements for frequent and regular communication,both formal and informal,between agents and beneficiaries in the program so that complaints-if-any and suggestions for improvement will be received by responsible officals.(f) Some system for regular reporting up theline to top management(so that the program may be periodically reviewed at the level where organizational policies and general plans ae formulated-and revised when and as necessary).(4) Additional services:- In many firms some or all of the following services are also provided as part of the organizational investment in employee and community health.(a) An informational program designed to encourage sensible living habits and to provide information about local services for health.Supervisors,company doctors,nurses and personnel counsellors can also offer such information in connection with their regular work.This may usefully and appropriately be done when an employee seeks medical advice when an accident or evident fatigue indicates need for more rest,or when an application for work(to earn double pay) during a paid vacation offers an opportunity to explain the company vacation policy as managements contribution toward the kind of respite from work which everyone needs.(b) As a formal program,this may include co-operating with local agencies presenting films or offering lectures on a available facilities such as chest X-rays,recreational services provided by the local YMCA and YWCA and medical services some of which are probably free as offered by local hospitals,clinics,medical schools and social service agencies.Some companies also offer courses in nutrition,first aid and child care.

Q4 List the roles and responsibilities of welfare officers.A4 The Position of Labour Welfare Officer owes its origin to a recommendation made by the royal commission o labour and later retired by the labour investigation committee.The factories plantation labour and mines act provide welfare officers as a statuary obligation for employing 500 or more workers.The state is empowered to prescribe duties qualifications and conditions of service.Model rules have been framed by the central model rules 1057 laid down certain duties for labour welfare officers.Since then a few have been deleted relating to his wage and employment duties and responsibilities of acting as a negotiator in disputes.At present the labour welfare officer’s duties are confined to welfare work.As requested by CLW the shri ram centre of industrial relations made the following recommendations with regard to the role of the welfare officer.(1) That the post should continue asa statutory regulation.(2) That the minimumof 500 should continue but could be brought down to 250 in industries which are machine intensive.(3) That the mines act should be amended to extend coverage of this facility to all mines employing 250 or more workers.The Plantation Labour Act should be amended so that

every plantation under the act has to designate one of the managerial personnel as the welfare officer.(4) That the central pool of labour officers should be disbanded and the employing ministries/departments recruit welfare officer as required.(5) That a labour welfare officer employed in factories or mines should be a post graduate from a recognized school of social work/labour institute and have a working knowledge of the language of the area.(6) That a schedule of recognized institutes should be prepared by the ministry of education.The recognized institutes should adhere to minimum standards of training prescribed by the relevant ministries.(7) That the discretionary power vested in the appropriate government to grant exemptions in regards to employment qualifications of labour welfare officers should be withdrawn..(8) The labour welfare officers training courses and the qualifying examinations should be withdrawn.(9) That the neutral role currently assigned should be modified.He should be entitled to such protection etc.As any other member of the management.(10) That sections of the act should be amended so that the labour welfare officer can discharge all duties assigned to him by the management except(1) appear in law courts on behalf of the management(2) take disciplinary action against workers and(11) Statutory provisions for group welfare officers for small units in one area in factories mines and plantations.Principles of Labour Welfare Programmes:- Following are given as the principles to be followed in setting up a labour welfare programme:- (1) The programme should satisfy real needs of the workers.This means that the manager must first determine what the employees real needs are extreme care and serious research should go into decision of whether or not to offer a particular employee service.More evidence is required than a mere unfounded bias of the manager.In one case a company manager who felt that his employees needed a sports programme,purchased facilities and hired a company athletic director.But when whistle was blown to play ball,nobody wanted to play.(2) The programme should be such as can be handled best by a group approach.For example life insurance purchased as a group can be obtained at a significantly lower price than the same insurance purchase by the individual.But it is argued that depending upon the differences in sex,age,marital status number of children type of job and the income level of employees there are large differences in their choice of a particular benefit.As a result it is suggested that a package total value of benefit should be determined and theselection of the mix of benefits should be left to the choice of each individual employee.This is known as the cafeteria approach such an approach individualises the benefit system though it may be difficult to operate and administer.(3) The employer should not assume a benevolent posture.We have seen in the section on leadership how modern organization based on classical principles faster dependency in employees which is incongruent with the needs of a mature personality.The paternalistic and benevolent approach has fallen in disrepute as a result of the employees desire to gain maturity and adulthood.(4) The cost of the programming should be calculated and its financing established on a sound basis.There are several employee services such as pension provident

fund,insurance etc which are not cheap to administer.The cost of such benefits can hardly be termed a fringe.It is therefore essential that before conceding any such service over the collective bargaining table sound actual estimates of its cost are made and adequate provisions for financing it are established.(5) The management should ensure cooperation and active participation of union and workers in formulating and implementing the programme.(6) There should be periodical assessment or evaluation of the programme and necessary timely improvement on the basis off feedback.Statutory welfare benefits:- These benefits are generally security and include gratuity and pension payments the employer’s contribution to the employees provident fund account and health insurance scheme.The employer’s contribution to statutory provident fund constitutes by far the largest item of expenditure accounting for 4.23 percent of the total wage bill in the plantation mining and manufacturing industries put together.The expenditure on the employees state insurance contributions by the manufacturing industries was 0.36 per cent while that on graduity account was 0.59 percent.Voluntary Welfare Measures:- Retirement benefits,medical care,compensation for injuries and disablement,subsidized food and housing,educational and cultural facilities payment on life insurance premium the maintenance of canteens cafeterias assistance to cooperative societies-these are some of the benefits voluntarily offered by employers.The expenditure on these benefits accounted for 9.40 per cent of the total wage bill in plantations industry again 3.74 per cent and 4.12 per cent in the mining and mainufacturing industries.The latter’s expenditure on canteen however was about 0.70 per cent of its total wage bill against that of 0.07 percent by the mining industries.Benefit Programmes for Management:- Special considerations and policies apply to the benefit programmes for the management for which a different benefit structure is provided because of the fact that many legal consideration do not operate in their case.For example management personnel do not receive overtime allowance or payment nor are they governed by trade union considerations or agreements.Managers generally are not entitled to nor do they expect,many of the benefits and services to which employees in general are entitled.However management personnel are generally required to contribute in part to their insurance gratuity pension and provident fund.Tax exemptions become more important and meaningful for them as they advance in the management hierarchy.

Q5 List the features of ESI Act.1. A5 provides for health care and cash benefits in cases of sickness,

maternity and employment injury 2. health and medical care facilities are provided to the workers

through a network of 140 hospitals, 43 annexes and 1443 dispensaries located throughout the country

3. Jointly administered by the Central Government and the State Governments

4. while the Central Govt formulates the Scheme, recovers the contribution from employers of covered establishments with the help of its Recovery Officers, builds the infrastructure (hospitals, dispensaries etc.), provides 7/8th of the total expenses, the

State Government contributes 1/8th, posts Medical Officers, specialists and paramedical staff, procures and instals equipments, dispenses medicines and has the overall responsibility for the management of the hospitals/dispensaries

5. Director General (DG), ESIC is the Chief Executive Officer of the Corporation and functions under the overall Supervision and control of the Board and Committees/Councils formed the reunder

SECTION - CAnswer any ONE question.Q1 If you were a welfare officer in an industrial establishment, how will you avoid accidents therein ?

A1 Danger zone warnings. A lot of industrial accidents result from neglecting to inform or warn people of danger zones. In industrial settings, there are places that have industrial hazards that can lead to different kinds of accidents. For this, it is imperative that the people working on the site are warned. Safety engineers are the ones who will be responsible for this.

Quality assurance of equipment. Another cause of industrial accidents is due to equipment that is not checked for quality. This can cost the lives of the employees. Every so often, equipment must be checked for quality. It must pass the established standards in order for it to be used. Employee training. Employee incompetence is another thing that causes injury

accidents. In order for employees to work in dangerous settings, they must be trained how to handle certain equipment and dangerous substances. This will ensure that they know how to handle and operate heavy and dangerous equipment.

Emergency briefing of employees. Employees must be briefed on emergency procedures when industrial accidents happen. If employees aren’t briefed, there is a bigger chance that more people can be harmed when accidents occur. Panicking or not knowing what to do when faced with a difficult situation may cause this.

Proper handling of hazardous waste materials. Some industrial accidents occur because of proper disposal of hazardous waste materials and chemicals. This may cause fires and explosions. Employees should be briefed on the proper handling and disposal of these materials to avoid untoward incidents.

Health and safety inspection checks. There are some non-profit organizations that conduct health and safety inspection checks in different industrial settings. These organizations not only inspect the workplace, but they also provide training to employees, consulting for improvement and dissemination of important information on industrial health and safety.

These are some of the preventive measures done in order to avoid industrial accidents. Although these measures may be implemented, there may still be accidents that cannot be avoided. Some of these can be caused by natural disasters that can strike at any given moment.

It is important that all these safety measures are implemented in order to have a secure work environment where negligence and incompetence cannot be blamed for accidents that occur. With these prevention methods, industrial accident rates will surely decrease.

1 Create a spreadsheet. You are going to need a way to record possible health and safety hazards in your business. Once recorded, you can figure out a plan to deal with them. After you have created your spreadsheet or record keeping template,inspect your business room by room, looking safety hazards.

2Check for slipping and tripping hazards. This may seem silly, but tripping is one of the main causes of injury in the workplace. Look for cords stretched across floors, rugs that are loose or have corners that stick up, or low steps that are not marked. Make sure hallways and other narrow areas are cleared of any debris or objects that block clear passage. In addition, make sure slick floors have a surface that will provide traction laid down on them. 3Check the air. Sometimes, heating ducts are neglected by cleaning crews. You want to make sure that your employees are not breathing contaminated air. Along those lines, protect your employees by implementing rules that limit smoking in the workplace. 4Check access to restrooms. Keeping things sanitary in the workplace is one way to cut down on illnesses. Make sure restrooms are always clean and stocked with supplies. Implement hand-washing rules as well. 5Check to make sure your employees are following general safety tips, such as lifting heavy items correctly, handling dangerous items carefully and using safety equipment properly, such as goggles. 6Limit access to harmful chemicals or tools. If your business deals with hazardous chemicals or equipment, make sure they are properly locked up when not in use. Accidental exposure to chemicals is another leading cause of injury in the workplace. This includes potentially harmful cleaning supplies.

Q2 What is the eligibility criteria for maternity benefit ? In foreign countries, men also get this (maternity) benefit. Why we are not implement in India ?- Should India follow this ? - Discuss.

A2 To safeguard working women and their rights to remain self-reliant and economically

independent, the Government of India has laid down certain laws to protect them. An example of

this is the Equal Remuneration Act, 1976, that aims at ensuring that women are fairly

compensated as compared to their male counterparts. Another act, which is our main focus of

discussion, is the Maternity Benefit Act, 1961, that protects the rights of working women who are

pregnant.

Maternity Benefits under The Act, 1961

Pregnant working women have been given special provisions under the Maternity Benefit Act,

1961. The Act extends to the whole of India. The Act is applicable to every mine, factory or

plantation irrespective of number of workers and to every shop or enterprise wherein 10 or more

persons are employed or were working on any day of the preceding 12 months.

The Act was enacted by the Central Industrial Relations Machinery. Some important provisions of

the Act are:

The Act prohibits an employer from employing a woman in any establishment for following six weeks after the child birth or miscarriage. It also forbids a woman from working for six weeks after delivery or miscarriage.

The employer is considered responsible for the payment of maternity benefit as per the rate of the average daily wages, for the time she is actually absent.

A woman is entitled to maternity benefit only after she had worked in an establishment for a period of at least 160 days spanning twelve months, previous to the expected delivery date.

A woman is entitled for maternity benefit for a period of maximum twelve weeks. This includes six weeks before and after the delivery including the day of the delivery.

An employer who disobeys the provisions under the Act can be punished with imprisonment or fine.

Maternity Benefits: Eligibility

All pregnant women working in any establishment are eligible for maternity benefit, provided they

have served in the establishment for at least 160 days in twelve months before the expected date

of delivery. However, if a woman is earning less than Rs.10, 000 she may be offered ESI scheme

by her employer, but will be not eligible for the maternity benefit.

Maternity Benefits: Submission of Written Notice

A written notice must be submitted by a woman to avail the maternity benefits. The start date of

the notice should be the date of going on leave. The notice should state:

That the payment of compensation should be made to her or to her nominee.

That she will not engage herself any kind of work in any other establishment while on leave.

The specified date from which she will be absent which shall not be before six weeks of her expected delivery date.

The notice shall be submitted before or after delivery.

Maternity Benefits: Dismissal on Account of Pregnancy

Maternity benefits cannot be denied to working women, provided they fulfill the eligibility criteria

as per the Act. An employer cannot terminate or change the terms of services of employment

during the period of maternity leave. However, the employer has a right to dismiss a woman if she

is found guilty of gross misconduct. 

before the date of her expected delivery, she may ask the employer to give her light work for amonth. At that time she should produce a certificate that she is pregnant

She should give written notice to the employer about seven weeks before the date of her delivery that she will be absent for six weeks before and after her delivery. She should also provide thename of person to whom payment will be made in case she cannot take it herself.

She should take the payment for the first six weeks before she goes on leave. She will get payment for the six weeks after child-birth within 48 hours of giving proof of

birth. She will be entitled to two nursing breaks of fifteen minutes each in the course of her

daily work till her child is fifteen months old. Her employer cannot discharge her or change her conditions of service while she is on

maternity leave {Section 5}

Q3 Discuss the aims and objectives of workers education. In BHEL ( HRDC) ‘Human Resource Development Centre’. How is it correlated with workers education ?A3 "Education", says Aristotle,” is the creation of a sound mind in a sound body". It encompasses in itself the all round development of an individual. The success of spreading education to the widest possible area lies in the way it is imparted. With the ever changing technology scenario, the methods of imparting education too have been undergoing changes. But education itself is an age old process, rather as old as the human race itself. It was man's education through Nature, our greatest teacher, that he learned how to make fire by rubbing stones or invented the wheal to make tasks easier. Education in real earnest helps us in restraining the objectionable predisposition in ourselves. The aims of education have been categorized variously by different scholars. While Herbert Spencer believed in the 'complete-living aim', Herbart advocated the moral aim. The complete living aim signifies that education should prepare us for life. This view had also been supported by Rousseau and Mahatma Gandhi. They believed in the complete development or perfection of nature.            All round development has been considered as the first and foremost aim of education. At the same time education ensures that there is a progressive development of innate abilities. Pestalozzi is of the view “Education is natural, harmonious and progressive development of man’s innate powers.” Education enables us to control, give the right direction and the final sublimation of instincts. It creates good citizens. It helps to prepare the kids for their future life. Education inculcates certain values and principles and also prepares a human being for social life. It civilizes the man.            The moral aim of Herbart states that education should ingrain moral values in children. He is of the view that education should assist us in curbing our inferior whims and supplant them with superior ideas. This moral aim has also been stressed upon by Gandhiji in the sense of formation of character. The preachers of this aim do not undermine the significance of knowledge, vocational training or muscular strength. But simultaneously they have also laid stress on their view that the undisclosed aim of education is to assist development of moral habits.             Then there is the social aim which means that education should produce effective individuals in the sense that they realize their responsibilities towards the society. And we all know that man is a social being. The interactive ability is a must as it is through interaction that we come to know of our responsibilities. Edmund Burke asks and he himself answers: "What is education? A parcel of books? Not at all, but an intercourse with the world, with men and with affairs."            Only bookish knowledge takes a child nowhere. It should be further perfected by practical usage with experience. "Reading maketh a full man; conference a ready man; and writing an exact man" is a pithy and precise statement in which the essayist Francis Bacon sums up the advantages of studies. Even Wordsworth in  his poem ‘The Tables Turned’ advocated against  bookish knowledge. 

Books! 'tis a dull and endless strife:Come, hear the woodland linnet,How sweet his music! on my life,

There's more of wisdom in it. 

Wordsworth was a die-hard naturalist. He wanted man to consider Nature his teacher. Naturalists believe that instincts of the child should be taken as the basis of education. The child should have freedom. Rabindra Nath Tagore was of the opinion that child should be left free in order to gather experience and to understand his own mistakes and shortcomings.

The twentieth century saw the emergence of the concept of Pragmatism. Charles Pierce was the first man to introduce the concept of pragmatism in his philosophy. Later on it was popularized by John Dewey, William James, Kilpatrick and Schiller. They believed that the external world is real and the reality is being constantly created and is always changing. Knowledge and truth is one and the same thing according to them.

Whatever the approach towards education, one thing we all agree: Education is for the betterment of the individual and in the long run for the society. Education helps us prepare ourselves for the life ahead. Darwin gave the theory of the ‘survival of the fittest’; we can say in a way that education prepares the individual for the struggle of life for his own survival.            Knowledge combined with proper guidance can spell success. A dose of proper guidance should be commenced right from the base itself, that is, in school days. Here comes the role of the teacher in

moulding a child's mind. Educating a child, especially in the beginning years of schooling, is a very tricky job. That is probably because the child’s mind is like the unmoulded clay at that time. Therefore to get the best results and prepare well-informed and erudite adults, proper guidance is a must. For a proper system of education the teacher should encourage a student both in terms of mental encouragement and in lending a helping hand as and when needed. A student needs help for training his mind in such a way that it develops a tendency to gather knowledge from all possible sources. While on the other hand too much help if lent to him will make him dependant and used to spoon feeding. Self-study is the most sought after quality in a student. It helps them at the later stages. But because the ‘child is the father of man’ (Wordsworth) all the qualities have to be inculcated right in childhood. And teacher along with parents plays a very significant role. The aims of education should be kept in mind, although a thorough study of these aims may not be imperative. A teacher should make a child ready to face the society, inculcate moral habits in him and thus, assist him in his all round development.            Education should not be considered synonymous with all that we learn. It does not signify the things we mug up before appearing for an examination. Education is what remains behind, when we fail to remember the mugged up portion. After we have left school, we realize that although we have forgotten quite a few things we learnt but still retain a very large part of it. The latter part is education. Education formally begins in school but actually it begins the day we are born and the process goes on for the whole of our life. This is where the aims of education come in. Education is not only the formal part we gain in schools, colleges or universities. It also includes the lessons life teaches us in various forms. For instance, when a child gets his finger pricked by a needle accidentally he learns that a needle is sharp and can hurt a person, so he will learn to avoid hurting himself in the future. This is only one example from thousands of other instances. We can even learn a lesson of a lifetime from a beggar. The birds inspire us to rise high. An ant motivates us for hard work. We learn some things just by doing them on our own, they are never taught in a school. A child’s first teacher is his mother, then his home and then come the formal agencies of education. Nature too is a great teacher. English poetry too gives us quite a few guidelines for leading a better life. It was not for nothing that Wordsworth went on to remark:

 "One impulse from the vernal wood

May teach you more of a manOf moral evil and of goodThan all the sages can."

 As long as there is life, we require education; we need ways to modify our views about life, to face it, to live it in a better way. And education teaches us all this. Even when you read a comic strip, it educates you in some way. They improve our language and make us realize that life isn’t so bad after all that it can’t get worse, as states Bill Watterson in ‘Calvin and Hobbes’. The witty humour of ‘Dennis the Menace’ enriches us no end. “The aim of education,” says Walter Grophices, "is not the specialist but the man of vision who can humanize our life by integrating emotional demands with our new knowledge."           

 In another way too, the insects and animals also teach you a lot. The easiest example is that of an ant. It inspires you to work hard. Therefore we can say there are innumerable modes of education, all that one needs is to have a discerning eye.            Education enriches a person in terms of accepting a defeat. A student should first of all be taught so that he is encouraged to study. Side by side he should be readied to face a failure. As Charles F. Kettering rightly says,” The chief job of the education is to teach people how to fail intelligently." This will help the child coping with the other adversities of life. Education, thus, makes a person an improved version of himself and the world a much better place to live in.

The importance of aims and objectives of education is recognised by all the educational, professional, political, nonpolitical and religious associations, organisations and groups at various levels in their memoranda, letters and brouchures. It is said that education without clear cut aims is like a rudderless ship. The following comparisons emphasise this point fully well.

Every pilot has a route-chart and set timing of landing at predetermined destination. There is constitution or set of Principles and traditions through which a country is governed Similarly, there should be properly defined and declared principles, aims and objectives of education or the basis of which policies and programmes of education nave to be formulated to achieve the set goals wit out wasting scarce energies and resources in chasing the wild goose.

It is generally felt that our educational system has not followed the desired aims as a result that it does not produce ideal citizens in the country. It has followed, rather a narrow aim of preparing individuals for livelihood, as mentioned in one of the documents received from an organisation.

The main reason of failure of educational system is that it basically stands or, pre-independence system. The main Objective of its products was how to take degree and to earn money and to be careerist without consideration of ethical values and national spirit.

On the other hand, it has also been pointed out that it is unressonable to criticise educational system alone because it is based on the other subsystems accepted by us.

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On the one hand we are developing and cultivating the British given economy, judicial system and system of administration and parliament, and on the other we are decrying and Criticising the education system which merely fulfils the needs of the British systems that we are propagating.

As pointed out in a memorandum of an association, "the main defect of the old. education policy.is that it had completely ignored the Indian culture and the interest of the masses of India and have left them economically too backward and socially too fragmented to articulate their miseries...."

The aims and objectives of education, suggested in the documents, include individual as well as social aimds, with emphasis of social transformation aiming at reconstructing society to make it modernised, productive, partidipative, and value oriented nation committed to its constitutional obligations.

 2. Individual Development

Development of an individual - physically, mentally and spritually is well known aim of education. Objectives related to this aim of individual development have been expressed in various ways in the memoranda:

- Developing physical and mental faculties

- Acquiring the capacities of understanding, appreciation and expression through word and act, are the fundamental aims of education

- Aim of education should be to make children self- confident and self dependent, and to make them strong physically and mentally

- Education is meant to develop every child's character, personality and culture and as much knowledge as the child can assimilate not merely memorize.

The best expression of complete development of an individual and the harmonious development of personality, however, is found in the following paragraph.

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The policy should be directed to the aim of enlightenment of head and heart; illumination of consciousness for allround development of individual personality. Education should enable a human being to attain the greatest possible harmony, internal and external, spiritual and material, for the fullest possible development of human potentialities and capacities.

 3. Social and National Development

Social, aim of education in equally important because an individual lives in society and has his obligations towards his nation. There is a realisation that, "The present education system does riot yield required results mainly because it is divorced from the real social content and social goals".

It has, therefore, been suggested that education should be able, to discharge its natural functions and must correspond to its structure, goals and content in the interest of national development and social progress. It has also been suggested in this connection that students from young age should be made aware of the social responsibility cast on them.

At the same time, there are certain constitutional commitments, which are intimately related to this aim.. We as the citizens of the republic, are constitutionally Committed to democracy, social justice, equality of opportunity, secularisum and above all to a welfare state. It has, therefore, been suggested that, "Educational policy and educational programme should clearly reflect these commitments".

The objectives of developing a sense of national identity, unity and patriotism are advocated by many associations. It is pointed out that the national objectives of planning and programmes and development with special emphasis on popular participation and the national problems that we face in different fields should. be taught at relevant stages.

Individual and social aims of education area not contrary to one another. In fact they are complementary to one another. The following view strikes a balance between individual and social aims of education.

The purpose of education should be the development of the fullest possible capacities and potentialities physical and spiritual of a `total man'. It should make a man capable of earning his

5

livelihood reasonably well to enjoy a happy and secure life while making effective contributions to the society and national effort of making India strong# advanced and prosperous.

 4. Social Transformation

Education should not merely equip an individual to adjust with society to its customs and conventions, but it should enable him to bring desirable changes in the society. It has been, therefore, suggested that, "Every educational institution from secondary school to university college should be developed to become an agency of change...."

However, it is essential that we should be quite clear about the purpose of change. It is, therefore, natural to ask the, question, "Reform and change to achieve what"? What type of society we aim at and what type of citizens we wish to produce? The following ideas give an indication of the kind of changes education is expected to bring about.

 4.1 Modernisation

Modernisation of society in terms of scientific and technological advancement is a view which seems to be quite popular. It is though that education should enable us to move with times and attain excellence in, science and technology. To quote an expression of this kind.

Scientific and technological advances are, gaining momentum and conscious efforts are made to incorporate them into the development sectors. This calls for modernisation of education in order to make. it in conformity with the modern times and to keep pace, with the advances in the world.

Modernisation, however, is not interpreted and equated with westernisation. In fact, lot of emphasis is given to `Indianness' while talking about modernisation. One of the suggestions explicitly points out that, hour education should integrate and unite the people of India, modernise society while preserving what is authentically Indian in our cultural and spiritual heritage".

The following suggestion beautifully reconciles the twin objectives of modern technical sophistication and the ancient spirituality.

6

"New education policy of India should be built on the foundation of ancient spirituality and modern culture and technical sophistication. It should develop scientific temper and spirit of enquiry in the students".

 4.2 Productivity

Some documents have insisted on linking education with productivity and thus making individuals as productivie citizens to build a productive society. One of the suggestions, in a memorandum, for example, says. "It should bring about a social transformation, and enhance greater efficiency and productivity in all sectors : agri- cultural, industrial and service". It is in this context that Mahatma Gandhi's system of basic education is still considered as a basically sound system and a suggestion has been made that with necessary modification elements of basic education may form part of education not only at the primary stage but at all stages in our national system of education. These elements are:

1. Productive activity in education.

2. Correlation of the curriculum with productive activity and physical and social environment.

3. Intimate contact between the school and the local community.

 4.3 Community Participation

In a democracy education without community participation is barren. This aim of education is, therefore voiced by a number of groups and organisations. The change that is envisaged on this front is that of Integrating education with community in all respects. To quote a suggestion in this regard:

The education system in all its branches and sectors should get itself involved in activities related to problems of local Community life and shall thus endeavour through the desirable community participation community involvement in the educational field to bring all education of its rightful place in community life.

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 5. Acquisition of Values

moral, cultural and spiritual values in education have been given immense importance in the Memoranda documents. One of the expressions emphatically point out that, "certain basic values as respect for others, responsibility, solidarity, creativity and integrity must be fostered in our children".

It is interesting that a number of specific values have been suggested in the documents. The values which are considered important are mentioned below:

Emphasis should be given in cultivating good qualities like cooperation, good will, forgiveness, tolerance, honesty, patience etc. in order to encourage universal brother-hood and to prepare students worthy citizens of the country.

Values of optimism and secularism, and service to the poor should be stressed on the young minds.

 6. Summing up

It is worth reproducing what a document mentions about the aims of education:

The aim of education is two-fold (i) Development of the individual in society and (ii) Consequent development of the society. The aim of education in relation to individual may be spelt out as follows:

i) to produce full human personality with courage, conviction, vitality, sensitivity and intelligence so that men and women may life in harmony with the universe;

ii) to bring out the fullest potential of child and prepare him. for life and its varied situations so that he becomes a cultured and responsible citizen dedicated in the service of community.

In relation to the society, the aim of education is to create:

i) a sane and learning society where made of material production will be such that no section of the society remains unemployed. In the Indian context such a made of

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production will be necessarily based on a decentralised economy utilising all available manpower;

ii) a society. where the conditions of work and general environment will offer psychic satisfactions and effective motivations to its members.

iii) a society reconciling technological and scientific advancement with general well-being and securit of its members, enhancing joy of life and eliminating all forms of exploitation.

The broad objective of education should, therefore, be to look beyond the existing society and to develop men and. women amenable to the advent of a sane and healthier society of tomorrow.

While summing up, it may be pointed out that various dimensions individual and social development, social transformation, value- acquisition etc. have been well identified in the memoranda documents. The following words briefly summarise the various dimensions which are considered important indeed for marching into the 21st century:

We are of the opinion that Indian education should aim at producing men and women of knowledge, character and cultural values and trained skills to

achieve excellence in their career and life. Let us make it clear that we wish to prepare youth to march into the 21st century on the ideals of truth and non-voilence as shown to us by our great leaders.

SECTION - DQ1 Describe the ‘Workmen’s Compensation Act’ and ‘Provident Fund.’ Explain their significance.A1 Workers' compensation (colloquially known as workers' comp in North America and compo in Australia) is a form of insurance that provides wage replacement and medical benefits for employees who are injured in the course of employment, in exchange for mandatory relinquishment of the employee's right to sue his or her employer for the tort of negligence. The tradeoff between assured, limited coverage and lack of recourse outside the worker compensation system is known as "the compensation bargain." While plans differ between jurisdictions,provision can be made for weekly payments in place of wages (functioning in this case as a form of disability insurance), compensation for economic loss (past and future), reimbursement or payment of medical and like expenses (functioning in this case as a form ofhealth insurance), and benefits payable to the dependents of workers killed during employment (functioning in this case as a form of life insurance). General damages for pain and suffering, andpunitive damages for employernegligence, are generally not available in workers' compensation plans, and negligence is generally not an issue in the case. These laws were first enacted in Europe and Oceania, with the United States following shortly thereafter.

Compensation before statutory law

Before the statutory establishment of workers' compensation, employees who were injured on the

job were only able to pursue their employer through civil or tort law.[1] In the United Kingdom, the

legal view of employment as a master-servant relationship required employees to prove employer

malice or negligence, a high burden for employees to meet. Although employers' liability was

unlimited, courts usually ruled in favor of employers, paying little attention to the full losses

experienced by workers, including medical costs, lost wages, and loss of future earning capacity.

[edit]Statutory compensation law

Statutory compensation law provides advantages to employees and employers. A schedule is

drawn out to state the amount and forms of compensation to which an employee is entitled, if

he/she has sustained the stipulated kinds of injuries. Employers can buy insurance against such

occurrences. However, the specific form of the statutory compensation scheme may provide

detriments. Statutes often award a set amount based on the types of injury. These payments are

based on the ability of the worker to find employment in a partial capacity: a worker who has lost

an arm can still find work as a proportion of a fully-able person. This does not account for the

difficulty in finding work suiting disability. When employers are required to put injured staff on

"light-duties" the employer may simply state that no light duty work exists, and sack the worker as

unable to fulfill specified duties. When new forms of workplace injury are discovered, for instance:

stress,repetitive strain injury, silicosis; the law often lags behind actual injury and offers no

suitable compensation, forcing the employer and employee back to the courts (although in

common-law jurisdictions these are usually one-off instances). Finally, caps on the value of

disabilities may not reflect the total cost of providing for a disabled worker. The government may

legislate the value of total spinal incapacity at far below the amount required to keep a worker in

reasonable living conditions for the remainder of his life.

A related issue is that the same physical loss can have a markedly different impact on the earning

capacity of individuals in different professions. For instance, the loss of a finger could have a

moderate impact on a banker's ability to do his or her job, but the same injury would totally ruin a

pianist.

[edit]Workers' Compensation law in the United States

At the turn of the 19th century workers’ compensation laws were voluntary for a couple of

reasons. Specifically, an elective law made passage easier and many felt that compulsory

workers’ compensation laws would violate the 14th amendment due process clause of the U.S.

Constitution. Since workers’ compensation mandated benefits without regard to fault or

negligence, many felt that compulsory participation would deprive the employer of property

without due process. The issue of due process was resolved by the United States Supreme Court

in 1917 when in New York Central Railway Co. v. White it was held that an employer’s

constitutional rights weren't affected. After the ruling most states enacted new compulsory

workers’ compensation laws.

In 1855, Georgia and Alabama passed Employer Liability Acts; 26 other states passed similar

acts between 1855-1907. These acts simply permitted injured employees to sue the employer

and then prove a negligent act or omission.[2] [3]  (A similar scheme was set forth in Britain's

1880 Act.[4])

After Germany's 1884 Act, workers' compensation laws began to be reformed to reduce the need

for litigation, and to mitigate the requirement that injured workers prove their injuries were their

employer's "fault". For example, The 1897 British Act replaced the 1880 Act.

In the United States, the first state such worker's compensation law was passed in Maryland in

1902, and the first law covering federal employees was passed in 1906.[5] (See: FELA,

1908; FECA, 1916; Kern, 1918.) By 1949, all states had enacted some kind of workers'

compensation regime.[6] Such schemes were originally known as "workman's compensation," but

today, most jurisdictions have adopted the term "workers' compensation" as a gender-neutral

alternative.

In the United States, most employees who are injured on the job have an absolute right to

medical care for any injury, and in many cases, monetary payments to compensate for resulting

temporary or permanent disabilities. Most employers are required to subscribe to insurance for

workers' compensation, and an employer who does not may have financial penalties imposed.

Texas employers have the unique ability to opt out of the Workers' Compensation system under

the original state law written in 1913. However, those employers, known as nonsubscribers, still

need insurance coverage in the event of workplace injury. This then is how

the nonsubscription industry in Texas began.

In 1995, 44% of Texas employers were nonsubscribers, while in 2001 the percentage was

estimated to be 35%.[7] The industry advocacy group Texas Association of Business

Nonsubscription claims that nonsubscribing employers have had greater satisfaction ratings and

reduced expenses when compared to employers enrolled in the workers’ compensation system.

[8] A research survey by Texas's Research and Oversight Council on Workers’ Compensation

found that 68% on non-subscribing employers and 60% of subscribing employers - a majority in

both cases - were satisfied with their experiences in the system, and that satisfaction with

nonsubscription increased with the size of the firm; but it stated that further research was needed

to gauge satisfaction among employees and to determine the adequacy of compensation under

nonsubscription compared to subscription.[7]

In many states, there are public uninsured employer funds to pay benefits to workers employed

by companies who illegally fail to purchase insurance. Insurance policies are available to

employers through commercial insurance companies: if the employer is deemed an excessive

risk to insure at market rates, it can obtain coverage through an assigned-risk program.

Workers' compensation is administered on a state-by-state basis, with a state governing board

overseeing varying public/private combinations of workers compensation systems.[9] The federal

government has its own workers' compensation program, subject to its own requirements and

statutory parameters for federal employees. In the vast majority of states, workers' compensation

is solely provided by private insurance companies. 12 states operate a state fund (which serves

as a model to private insurers and insures state employees), and a handful have state-owned

monopolies. To keep the state funds from crowding out private insurers, they are generally

required to act as assigned-risk programs or insurers of last resort, and they can only write

workers' compensation policies. In contrast, private insurers can turn away the worst risks and

can write comprehensive insurance packages covering general liability, natural disasters, and so

on. Of the 12 state funds, the largest is California's State Compensation Insurance Fund. The

federal government pays its workers' compensation obligations for its own employees through

regular appropriations.

The California Constitution, Article XIV section 4, sets forth the intent of the people to establish a

system of workers' compensation. This section provides the Legislature with the power to create

and enforce a complete system of workers' compensation and, in that behalf, create and enforce

a liability on the part of any or all employers to compensate any or all of their employees for injury

or disability, and their dependents, for death incurred or sustained by said employees in the

course of their employment, irrespective of the fault of any employee. Further, the Constitution

provides that the system must accomplish substantial justice in all cases expeditiously,

inexpensively, and without incumbrance of any character. It was the intent of the people of

California when they voted to amend the state constitution in 1918, to require the Legislature to

establish a simple system that guaranteed full provision for adequate insurance coverage against

liability to pay or furnish compensation. Providing a full provision for regulating such insurance

coverage in all its aspects, including the establishment and management of a State compensation

insurance fund; full provision for otherwise securing the payment of compensation; and full

provision for vesting power, authority and jurisdiction in an administrative body with all the

requisite governmental functions to determine any dispute or matter arising under such

legislation, in that the administration of such legislation accomplish substantial justice in all cases

expeditiously, inexpensively, and without encumbrance of any character. All of which matters is

the people expressly declared to be the social public policy of this State, binding upon all

departments of the State government.[10]

It is illegal in most states for an employer to terminate or refuse to hire an employee for having

reported a workplace injury or filed a workers' compensation claim. However, it is often not easy

to prove discrimination on the basis of the employee's claims history. To abate discrimination of

this type, some states have created a "subsequent injury trust fund" which will reimburse insurers

for benefits paid to workers who suffer aggravation or recurrence of a compensable injury. It is

also suggested that laws should be made to prohibit inclusion of claims history in databases or to

make it anonymous. (See privacy laws.)

Some employers vigorously contest employee claims for workers' compensation payments. In

any contested case, or in any case involving serious injury, a lawyer with specific experience in

handling workers' compensation claims on behalf of injured workers should be consulted. Laws in

many states limit a claimant's legal expenses to a certain fraction of an award; such "contingency

fees" are payable only if the recovery is successful. In some states this fee can be as high as

40% or as little as 11% of the monetary award recovered, if any.[11]

In the vast majority of states, original jurisdiction over workers' compensation disputes has been

transferred by statute from the trial courts to special administrative agencies.[12] Within such

agencies, disputes are usually handled informally by administrative law judges. Appeals may be

taken to an appeals board and from there into the state court system. However, such appeals are

difficult and are regarded skeptically by most state appellate courts, because the point of workers'

compensation was to reduce litigation. A few states still allow the employee to initiate a lawsuit in

a trial court against the employer. Ohio allows appeals to go before a jury.[13]

Various organizations focus resources on providing education and guidance to workers'

compensation administrators and adjudicators in various state and national workers'

compensation systems. These include the American Bar Association (ABA), the International

Association of Industrial Boards and Commissions (IAIBC), and the National Association of

Workers' Compensation Judiciary (NAWCJ).

[edit]Workers' Compensation in Specific States

[edit]Florida

Florida workers’ compensation (WC) is a statutory program defined primarily by Chapter 440

Florida Statutes. Florida WC provides two primary benefits to workers with work-related injuries or

illnesses. Medical care is defined by F.S. 440.13. Medical benefits may be delivered through a

“managed care” plan, at the option of the employer. Indemnity, or “income replacement,” benefits

are defined by F.S. 440.15. Indemnity is divided into “temporary” and “permanent.”indemnity is

therefore potentially available for “temporary total,” “temporary partial,” “permanent partial,” and

“permanent total.” Governmental oversight responsibility for the system is divided between the

Division of Workers’ Compensation (DWC) and the Office of the Judges of Compensation Claims

(OJCC). The DWC is part of the Department of Financial Services (DFS) and regulates the

reporting of workplace injuries and illnesses. Insurance companies and self-insured employers

are obligated to report claim information to the DWC thereafter. Examples of required data

submissions include payment of medical bills, inception and cessation of indemnity benefits, and

closure of the claim. The DWC also provides advice and assistance to injured workers through

the Ombudsman or “Employee Assistance Office,” commonly called the “EAO".

The OJCC is an independent agency within the Division of Administrative Hearings (DOAH). An

injured worker seeking benefits that are not administratively provided by the employer or its

insurance carrier may seek an order from the OJCC compelling provision of that benefit(s). The

request is made in the form of a “petition for benefits” or “PFB,” which is defined in F.S. 440.192.

Each PFB is assigned to a Judge of Compensation Claims (JCC) in the geographic region in

which the accident or illness occurred. Florida is divided into 17 such regions, called “Districts.”

Each District is staffed by one to five JCCs. There are 33 JCCs in Florida. The filing of a PFB

automatically triggers the court to order a mediation conference, which must be held within 130

days after the filing of the petition. Many claims for benefits are resolved between the parties

before the mediation conference. Those issues that are not resolved before or during mediation

will be scheduled for trial, or final merit hearing, before the assigned JCC. The final hearing must

be held and concluded within 90 days after the mediation conference is held, allowing the parties

sufficient time to complete discovery. The decisions of each JCC are reviewable by the First

District Court of Appeal in Tallahassee, FL.

[edit]Illinois

[edit]New York

The neutrality of this section is disputed. Please see the discussion on the talk page. Please do not remove this message until the dispute is resolved. (March 2009)

Workers' compensation is required by law for business owners to have in place for their

employees. In March 2007, the state of New York adopted major reforms to its Workers'

Compensation law. These reforms included an increase in available temporary disability

payments for injured workers with the trade-off being that lifetime permanent partial disability

benefits are no longer available for injuries after July 1, 2008. As with many systemic changes to

broad legal schemes, the reforms have spawned significant litigation to clarify the meaning of

many of the changed statutory sections. The Workers' Compensation Board has also attempted

to resolve many more cases administratively, meaning that no hearing may be held to resolve a

particular dispute, but this change has had unintended consequences. For example, injured

workers may not sufficiently understand their rights, since an administrative decision may easily

be confused with a proper legal determination (which it may not be). Injured workers are advised

to consult an experienced Workers' Compensation attorney since consultation is free (a lawyer in

New York cannot charge a fee regarding a Workers' Compensation claim without getting the fee

approved by a Workers' Compensation Law Judge). In cities like Rochester, the Workers'

Compensation Board has become a central location around which many of the experienced

lawyers on both sides have located their offices. Owners of for-profit corporations are exempt

from workers compensation insurance however non-profit companies do not get the exclusion.

[edit]Privatization

In recent years, workers compensation programs in West Virginia and Nevada were

successfully privatized, through mutualization, in part to resolve situations in which the programs

in those states had significantly underfunded their liabilities. Only four states rely on entirely state-

run programs for workers compensation: North Dakota, Ohio, Washington, and Wyoming. Many

other states maintain state-run funds but also allow private insurance companies to insure

employers and their employees, as well.

[edit]Alternate forms of statutory compensation in the United States

Employees of common carriers by rail have a statutory remedy under the Federal Employers'

Liability Act, 45 U.S.C. sec. 51, which provides that a carrier "shall be liable" to an employee who

is injured by the negligence of the employer. To enforce his compensation rights, the employee

may file suit in United States district court or in a state court. The FELA remedy is based on tort

principles of ordinary negligence and differs significantly from most state workers' compensation

benefit schedules.

Seafarers employed on United States vessels who are injured because of the owner's or the

operator's negligence can sue their employers under the Jones Act, 46 U.S.C. App. 688.,

essentially a remedy very similar to the FELA one.

[edit]Workers' Compensation outside the United States

The laws outside the United States are as varied as they are within the U.S.

[edit]Statutory compensation in Australia

As Australia experienced a relatively influential labour movement in the late 19th and early 20th

century, statutory compensation was implemented very early in Australia.

[edit]South Australia

In South Australia legislation was enacted in 1986 called the Workers Rehabilitation and

Compensation Act. The WorkCover Corporation of South Australia WorkCoverSA has the

responsibility for administering the Act.

[edit]New South Wales

In NSW, workers compensation is governed by the Worker's Compensation Act 1987. WorkCover

NSW is a statutory authority within the portfolio of the Minister for Finance. Its primary objective is

to work in partnership with the NSW community to achieve safe workplaces, effective return to

work and security for injured workers.[14]

[edit]Queensland

In QLD, workers compensation is governed by the Worker's Compensation and Rehabilitation Act

2003. WorkCover Queensland is the main provider of workers’ compensation insurance to

Queensland employers since its formation in 1997. WorkCover Queensland Laws

[edit]Victoria

Workers Compensation is managed in Victoria by WorkSafe Victoria which has the role of

managing Victoria's workplace safety system. The responsibilities broadly are help employees

avoid workplace injuries occurring, enforcement of Victoria's occupational health and safety laws,

provision of reasonably priced workplace injury insurance for employers, assisting injured workers

back into the workforce and managing the workers' compensation scheme by ensuring the

prompt delivery of appropriate services and adopting prudent financial practices.[15]

[edit]Australian Capital Territory

In ACT, workers compensation is governed by the Workers Compensation Regulation 2002 made

under the Workers Compensation Act 1951. WorkSafe ACT was created on 3 May 2010 to

replace ACT Workcover. WorkSafe ACT’s enforces ACT's health and safety and workers’

compensation laws. ACT's Workers Compensation Regulation

[edit]Western Australia

In WA, workers compensation is governed by the Workers' Compensation and Injury

Management Act 1981. WorkCover WA is the government agency responsible for overseeing the

workers' compensation and injury management system in Western Australia. Workers'

Compensation Laws in Western Australia

[edit]Northern Territory

In NT, workers compensation is governed by the Workplace Health and Safety Act 2011.

Worksafe is the administrative and regulatory arm of Northern Territory’s Work Health

Authority. Northern Territory Worksafe - Workplace Health and Safety Act

[edit]Tasmania

Tasmania's Workers Compensation system is managed by WorkCover Tasmania which takes its

role seriously in Workers Compensation. It monitors and ensures safety and prevention including

producing publications, education seminars, assists businesses with an advisory service,

oversees the accreditation of medical practitioners, ensures that employees are insured and

licensed and also promotes special events.

[edit]Workers' compensation in Brazil

Welfare (called Instituto Nacional do Seguro Social - INSS) is the social insurance for those who

contribute. It is a public institution that aims to recognize and grant rights to its policyholders. The

amount transferred by Welfare is used to replace the income of the worker taxpayer, when he

loses the ability to work, by sickness, disability, age, death, involuntary unemployment, or even

maternity and imprisonment. During the first 15 days worker’s salary is paid by his employers and

after that by Welfare, while inability to work lasts. It is up to 75% of the workers’ wages.The

Brazilian Welfare went through several conceptual and structural changes, involving the degree

of coverage, the list of benefits and how the system is financed. If one cannot work, his employer

pays for the first 15 days and the Welfare pays from the 16th day on, while he is unable to work.

On the other hand, if workers intend to receive compensation from their former employer, there is

a time limit for filling a claim (2 years), which must be legally supported. Workers’ compensation

laws are the same in the whole country and tend to be protective.

[edit]Statutory workers' compensation in Canada

Workers' compensation was Canada's first social program to be introduced as it was favoured by

both workers' groups and employers hoping to avoid lawsuits. The system arose after an inquiry

by Ontario Chief Justice William Meredith who outlined a system that workers should be

compensated for workplace injuries, but that they must give up their right to sue their employers.

It was introduced in the various provinces at different dates. Ontario was first in 1915, Manitoba in

1916, British Columbia in 1917. It remains a provincial responsibility and thus the exact rules vary

from province to province. In some provinces, such as Ontario's Workplace Safety and Insurance

Board, the programme also had a preventative role ensuring workplace safety. In British

Columbia, the occupational health and safety mandate (including the powers to make regulation,

inspect and assess administrative penalties)is legislatively assigned to the Workers'

Compensation Board of British ColumbiaWorkSafeBC. In most provinces the workers'

compensation board or commission remains solely concerned with insurance. The workers'

compensation insurance system in every province is funded by employers based on their payroll,

industry sector and history of injuries (or lack thereof) in their workplace (usually referred to as

"experience rating").

[edit]Worker's compensation in Germany

Main article: Worker's compensation Germany

The German worker's compensation law of 6 July 1884[16] — initiated by Prince Otto von

Bismarck,[17] [18]  passed only after three attempts — was the first of its kind in the world.

[19] Similar laws passed in Austria in 1887, Norway in 1894, and Finland in 1895.The Sickness

Insurance law paid indemnity to all private wage earners and apprentices, including those who

work in the agricultural and horticultural sectors and marine industries, family helpers and

students with work-related injuries, for up to 13 weeks. Workers who are totally disabled get

continued benefits at 67% after this 13-week period - paid by the accident funds, financed entirely

by employers.The German compensation system has been taken as a model for many nations.

[edit]Workers' compensation in the United Kingdom

There is no comparable workers compensation scheme in the UK. An employee can pay for

permanent health insurance or private medical plans but the UK government does not recognise

the need for a rigid insurance scheme of the sort prevalent across the USA and a number of other

countries. Work related safety issues in the UK are controlled by the Health & Safety Executive

(HSE) who provide the framework by which employers and employees are able to comply with

statutory rules and regulations.[21]

With the exception of the following all employers are obliged to purchase compulsory Employers

Liability Insurance in accordance with the Employers Liability (Compulsory Insurance) Act of

1969. The current minimum Limit of Indemnity required is £5,000,000 per occurrence. Market

practice is to usually provide a minimum £10,000,000 with inner limits to £5,000,000 for certain

risks e.g. workers on oil rigs and acts of terrorism.

Employers who do not require Employers Liability Compulsory Insurance are:

local authorities (other than Parish Councils)

joint boards or committees whose members include members of local authorities

police authorities

nationalised industries or their subsidiaries

certain bodies which are financed out of public funds

employers of crews on offshore installations, ships or hovercraft, if they are covered

instead with a mutual insurance association of ship owners or ship owners and others

a health service body or NHS Trust

"Employees" are defined as anyone who has entered into or works under a contract of service or

apprenticeship with an employer. The contract may be for manual labour, clerical work or

otherwise, it may be written or verbal and it may be for full time or part time work.Persons who

are not classed as employees and, therefore, are exempt are:-

persons who are not employees (for example independent contractors who are not the

employees of the person engaging them)

people employed in any activity which is not a business (e.g. domestic servants)

people who are related to the employer - husband, wife, father, mother, grandfather,

grandmother, stepfather, stepmother, son, daughter, grandson, granddaughter, stepson,

stepdaughter, brother sister, half-brother or half-sister

people who are not normally resident in the United Kingdom and who are working here

for fewer than 14 consecutive days.

Employees need to establish that their employer has a legal liability to pay compensation. This

will principally be a breach of a statutory duty or under the tort of negligence. In the event that the

employer is insolvent or no longer in existence Compensation can be sought directly from the

insurer under the terms of the Third Party Rights Against Insurers Act of 1930.

History: see: Workmen's Compensation Act 1897 & following

local authorities (other than Parish Councils)

joint boards or committees whose members include members of local authorities

police authorities

nationalised industries or their subsidiaries

certain bodies which are financed out of public funds

employers of crews on offshore installations, ships or hovercraft, if they are covered

instead with a mutual insurance association of ship owners or ship owners and others

a health service body or NHS Trust.

Employees' Provident Fund Organisation of India

The Employees' Provident Fund Organisation (EPFO) (Hindi: कर्म�चा�री� भविष्य वि धि� सं�गठ ), is a

statutory body of the Government of India under the Ministry of Labour and Employment. It

administers a compulsory contributory Provident Fund Scheme, Pension Scheme and an

Insurance Scheme. It is one of the largest social security organisations in the world in terms of

the number of covered beneficiaries and the volume of financial transactions undertaken.[citation

needed].

Mission

"To extend the reach and the quality of publicly managed old-age income security programs

through consistent and ever-improving standards of compliance and benefit delivery in a manner

that wins the approval and confidence of Indians in our methods, fairness, honesty and integrity,

thereby contributing to the economic and social well-being of Indians."

[edit]Legal basis

The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 came into effect on 4

March 1952. The Organisation is administered by a Central Board of Trustees, composed of

representatives of the Government of India, provincial governments, employers and employees.

The Board is chaired by the Union Labour Minister of India. The Chief Executive of the EPFO, the

Central Provident Fund Commissioner, reports to the Union Labour Minister through the

Permanent Secretary in the ministry. The headquarters of the Organisation is in New Delhi. [1].

The Constitution of India under "Directive Principles of State Policy" provides that the State shall

within the limits of its economic capacity make effective provision for securing the right to work, to

education and to public assistance in cases of unemployment, old-age, sickness & disablement

and undeserved want. The EPF & MP Act, 1952 was enacted by Parliament and came into force

with effect from 1 March 1952 as part of a series of legislative interventions made in this direction.

Presently, the following three schemes are in operation under the Act:

1. Employees' Provident Fund Scheme, 1952

2. Employees' Deposit Linked Insurance Scheme, 1976

3. Employees' Pension Scheme, 1995 (replacing the Employees' Family Pension Scheme,

1971)

[edit]Size and contributions

The total financial corpus managed by the EPFO is in excess of Rs. 2000 billion ($50 billion) and

there are a total of about 40 million contributing and non contributing members in about 450,000

covered establishments.

Membership is compulsory for employees in establishments coming under the purview of the

statute. As per provisions in force almost any establishment in India is required to have a

registration with the basic criterion being employment of 20 or more persons. Contribution is at

present 12% of basic monthly salary as employees' share and a matching contribution by the

employer. Among the many benefits offered in addition to the compulsory Provident Fund (where

the present rate of interest is 9.5%) are pension on retirement, death or disablement and a

lumpsum insurance payout in case of death of the member, to his nominee/family.

[edit]Structure

The EPFO has the dual role of being the enforcement agency to oversee the implementation of

the EPF& MP Act and as a service provider for the covered beneficiaries throughout the country.

To this end, the Commissioners of the Organisation are vested with vast powers under the statute

conferring quasi- judicial authority for search and seizure of records, assessment of financial

liability on the employer, levy of damages, attachment and auction of a defaulter's property,

prosecution and arrest and detention in civil prison.

Administratively, the Organisation is Organised into Zones which are headed by an Additional

Central Provident Fund Commissioner for each of the political states in the country. The states

have either one or more than one Regional Offices (R.O.) headed by Regional P.F.

Commissioners (Grade I) which are further sub- divided into Sub- Regions (S.R.O.) headed by

Regional P.F. Commissioners (Grade II). To assist them are Assistant P.F. Commissioners. Most

of the districts in the country have small district offices where an Enforcement Officer is stationed

to inspect the local establishments and attend to grievances.

The total manpower of the EPFO is at present about 20000 including all levels. The

Commissioner cadre numbering 815 are recruited directly, competitively, through the Union

Public Service Commission of India as well as through promotion from lower ranks. Subordinate

Officers (Enforcement Officers/ Accounts Officers) are also recruited directly in addition to

promotion from the staff cadre of social security assistants.

Mandatory Provident FundFrom Wikipedia, the free encyclopedia

The Mandatory Provident Fund (Chinese: 強制性公積金), often abbreviated as MPF (強積金), is a

compulsory saving scheme (pension fund) for the retirement of residents in Hong Kong. Most

of employees and their employers are required to contribute monthly to Mandatory Provident Fund

Schemes provided by approved private organisations, according to their salaries and the period

of employment.

[edit]History

In traditional Chinese society, a retired person was supposed to be supported by his family and his

savings, thus an extended family formed a safety net. Life expectancy was comparatively low

compared to today.

As Hong Kong become a developed entity, life expectancy in the territory improved greatly and the

birth rate dropped significantly. Extended family was broken into nuclear family. Hong Kong's social

security system will be unable to cope with the large number of elderly people in the future. There

were some calls to establish a central provident fund and heated debates among government,

politicians and trade unions ensued in the early 1990s.

In 1994, the World Bank published the report "Averting the Old-Age Crisis: Policies to Protect the Old

and Promote Growth", in which a three-pillar approach to protection for the aged was put forward.

The three pillars were:

a publicly managed, tax-financed social safety net;

a mandatory, privately managed fully funded contribution scheme;

voluntary personal savings and insurance.

Central Provident Fund

The Central Provident Fund (Abbreviation: CPF; Chinese: 公积金, Pinyin: Gōngjījīn) is a

compulsory comprehensive savings plan for working Singaporeans and permanent

residentsprimarily to fund their retirement, healthcare and housing needs. It is administered by

the Central Provident Fund Board, a statutory board under the Ministry of Manpower. The CPF

was started on 1 July 1955.

History of CPF:-

CPF Building, headquarters of the CPF Board, is located on Robinson Road.

Singapore introduced the CPF in 1955 as a compulsory savings scheme so as to allow workers

to save for their retirement, 10 years after the end of the Japanese Occupation when people were

struggling to make ends meet.

With Singapore's entrance into developed status, life expectancy rose with the rising living

standards. Singaporeans were required from 1987 to set aside a portion of their income to their

CPF until the age of 55 to provide them with a basic monthly income when they retire.

[edit]About the CPF Logo

The circle emphasises the completeness of the CPF system as a national social security savings

scheme.The shield represents security and protection for the members in their retirement.

The three keys represent the unity of the tripartite relationship between Employees, Employers

and the Government.Lastly, the use of the colour green in the logo highlights the need for CPF’s

constant growth and dynamism.

[edit]Accounts

Working Singaporeans and their employers make monthly contributions to the CPF and these

contributions go into three accounts:

Ordinary Account - for housing, pay for insurance, investment and education.

Special Account - for investment in retirement-related financial products.

Medisave Account - for hospitalisation and approved medical insurance.

Schooling children will have their outstanding funds in their Edusave account deposited into their

CPF account when they enter the workforce.

[edit]Employer and Employee CPF Contribution Rates

In September 2010, the employer's contribution to the CPF, a national pension fund, will go up by

0.5% and added into the Medisave Account and in March 2011, the employer's contribution would

go up another 0.5% and this would be added into the Special Account, bringing the total employer

CPF contribution to 15.5%. This will set the overall contribution employer and employee CPF

contribution rate to 35.5%.

[edit]Scope and benefits

The overall scope and benefits of the CPF encompass the following:

[edit]Retirement

At age 55, the CPF savings may be withdrawn after setting aside the CPF Minimum Sum.

However, the CPF savings may also be withdrawn if one should leave Singapore and West

Malaysia permanently or become permanently incapacitated. The CPF Minimum Sum may be

used to purchase life annuity from a participating insurance company, placed with a participating

bank or left in the Retirement Account with the CPF Board. From 62 (current draw-down age),

monthly payments shall be given from the CPF Minimum Sum to help meet basic needs in

retirement. If life annuity had been purchased, a monthly income for life shall be given. If the CPF

Minimum Sum is left with a participating bank or with CPF Board, monthly income shall be given

till the CPF Minimum Sum is exhausted. Monthly payouts may be started later; it is beneficial in

that way since payouts will last longer. For example, if the payouts were started at age 63 instead

of 62, they can last till age 84 instead of 82.From 1 July 2009, the CPF Minimum Sum was

increased from $106,000 to $117,000. The Minimum Sum will be raised gradually until it reaches

$120,000 (in 2003 dollars) in 2013, and will be adjusted yearly for inflation.From 1 July 2011, the

prevailing MS will be revised to $131,000, up from $123,000. Members who can set aside the MS

fully in cash can apply to commence their monthly payouts of $1,170 when they reach their draw

down age. The new MS will apply to CPF members who turn 55 from 1 July 2011 to 30 June

2012.Should the CPF Minimum Sum be met, a Medisave Required Amount is needed to be set

aside when withdrawing CPF savings. However, should the Medisave Required Amount not be

met, the Special and/or Ordinary Accounts may be used in excess of the CPF Minimum Sum to

set aside the Medisave Required Amount. This includes the first withdrawal upon reaching 55 and

all subsequent withdrawals.

[edit]Healthcare

Monthly contributions to the Medisave Account help build up savings for healthcare needs.

Medisave may be used to cover for self or dependents hospitalisation expenses. It may also be

used for certain outpatient treatments like chemotherapy and radiotherapy treatments.Medisave

savings may be used to cover the premiums for MediShield. These are catastrophic medical

insurance schemes for one and one's dependents. They help to meet the high medical costs of

prolonged or serious illnesses. For older CPF members, there is ElderShield, an affordable

severe disability insurance scheme that provides insurance coverage to those who require long-

term care.To ensure that all Singaporeans have access to medical care, Medifund helps the poor

and needy to cover their medical bills.The Medisave Required Amount is set at $18,000 from 1

January 2009 and will rise by approximately $2,500 (to be adjusted for inflation) each year until it

reaches $25,000 (in 2003 dollars) on 1 January 2013.From 1 July 2011, a. The Medisave

Minimum Sum (MMS) will be raised to $36,000 from $34,500. Members will be able to withdraw

their Medisave savings in excess of the MMS at or after age 55. b. The maximum balance a

member may have in his Medisave Account, known as the Medisave Contribution Ceiling (MCC),

is fixed at $5,000 above MMS and this would be increased correspondingly to $41,000, from

$39,500. As announced previously, any Medisave contribution in excess of the prevailing MCC

will be transferred to the member’s Special Account if he is below age 55 or to his Retirement

Account if he is above age 55 and has a MS shortfall. The revisions to MMS and MCC are to

ensure that Singaporeans have sufficient savings to meet their healthcare expenses, and have

been adjusted for inflation.

[edit]Home ownership

The Ordinary Account savings can be used to purchase a home under the CPF housing

schemes. A HDB flat may be purchased under the Public Housing Scheme, or a private property

under the Residential Properties Scheme. CPF savings may be used for full or partial payment of

the property, and to service the monthly housing payments. Home buyers who are taking a bank

loan to finance their property purchase have to pay the first 5% of the downpayment in cash. If a

flat is purchased under the Public Housing Scheme, insurance under the Home Protection

Scheme will be needed.

How much CPF can be used?

a) A new HDB flat bought directly from HDB (financed by HDB concessionary loan)

One can use the full CPF Ordinary Account savings and future CPF contributions in the Ordinary

Account for the downpayment as well as the balance of the purchase price and/or pay off the

HDB loan.

b) A resale HDB flat bought in the open market (financed by concessionary loan)

One can use the full CPF Ordinary Account savings and future CPF contributions in the Ordinary

Account for the downpayment as well as the balance of the purchase price and/or pay off the

HDB loan.When the total amount of CPF used for the particular property has reached 100% of

the Valuation Limit (VL), one has to have Ordinary and Special Account savings of at least 50%

of the prevailing CPF Minimum Sum when using further Ordinary Account savings for the

property. The VL is the lower of the purchase price or the value of the property at the time of

purchase.

c) HDB flat or private property financed by bank loan

The same as (b) above except that when the total amount of CPF used has reached the CPF

Withdrawal Limit, further use of CPF is not allowed for the property.Click here for more

information on Public Housing Scheme and click here for more information on residential

properties.

[edit]Family Protection

The Dependents' Protection Scheme helps families to tide over the first few years in the event of

an insured member's permanent incapacity or death.The Home Protection Scheme prevents

homes from being lost. This scheme is applicable to all CPF members who use their CPF savings

to buy an HDB flat. Should the insured member become permanently incapacitated or die, the

CPF Board will pay the outstanding housing loan based on the amount insured.MediShield is a

catastrophic medical insurance scheme to help one and their dependents to meet the high

medical costs of prolonged or serious illnesses. For older CPF members, there is ElderShield, an

affordable severe disability insurance scheme that provides insurance coverage to those who

require long-term care.

[edit]Asset enhancement

CPF members may invest their Ordinary Account balance under the CPF Investment Scheme -

Ordinary Account (CPFIS-OA) and their Special Account balance under the CPF Investment

Scheme - Special Account (CPFIS-SA), subject to caps. Assets that may be invested

includes Insurance, Unit Trusts, Exchange Traded Funds (ETFs), Fixed

Deposits, Bonds and Treasury Bills, Shares, Property Fund andGold. From 1 July 2010, only

monies in excess of $20,000 in the Ordinary Account and $40,000 in the Special Account can be

invested.

[edit]Criticisms

While the CPF does indeed contribute to Singapore having one of the highest savings

rates in the world, even in Asia (where savings rates tend to be higher than that of the

Western world), the compulsory nature of CPF and the inability for the individual to opt

out does produce some problems for society. One would be the locking up of funds for

the high-income, which do not require the services of such a fund anyway, having access

to possibly greater yield funds. This leads to an opportunity cost in terms of the potential

income that could be generated by investing the money in CPF in a higher-yield

vehicle.Another problem for people on lower incomes would be that the CPF takes up a

sizeable chunk of their income, and forces them to consume less in the short term. This

could lead to an inability to afford personal health insurance or accident insurance, for

which the Medisave component of CPF may be inadequate in coverage.The most severe

problem of force saving is that people has no way to prevent government from stealth

confiscation of wealth. If a person buy S$100 worth of gold in 1970, that amount of gold

would be around S$1900 in 2011. In comparison, the same amount of money would be

S$740 today if assume that CPF pays 5% interest every year. Hence, it is no coincidence

that majority of Singapore are unable to retire even if they have saved a third of their

income.Despite these criticisms, no action has been taken to allow greater flexibility with

the CPF program.

Employees Provident FundThe Employees Provident Fund (Abbreviation: EPF) also known Malay as Kumpulan Wang

Simpanan Pekerja(Abbreviation: KWSP) is a Malaysian government agency under the Ministry

of Finance. It manages the compulsory savings plan and retirement planning for legally employed

workers in Malaysia. Membership of the EPF is mandatory for working Malaysian citizens, or non-

Malaysian citizens who are either permanent residents or have been EPF members before 1

August 1998.[1]

Overview

The Malaysian EPF was formally founded after the enactment of the Employees Provident Fund

Act 1991 (Act 452), which grants employees retirement benefits via a body that is intended to

manage their savings.[2] As of 31 December 2006, a total of 11.4 million members have registered

to the EPF, of which 5.4 million are active and contributing members, and 416,000 are active

employers.[2]

The EPF is intended to help employees from both private and non-pensionable public sectors

save a fraction of their salary in a lifetime banking scheme, to be used in an event that the

employee is temporarily or no longer fit to work. The EPF primarily applies to retirement, but

sickness, disabilities or unemployment are also covered. The EPF also provides a framework for

employers to meet legal and moral obligations to their employees.[2]

As of June 2010, the size of the EPF stood at RM407 billion.[3]

[edit]Savings and investments

As of 2007, the EPF functions by procuring at least 11% of each member's monthly salary and

storing it in a savings account, while the member's employer is obligated to additionally fund at

least 12% of employee's salary to the savings at the same time.[2]

While in savings, a member's EPF savings may be used as investments for companies deemed

profitable and permissible by the organisation, from which dividends are banked to respective

members' accounts. Alternately, members may use their EPF savings in their own investments,

although such activities are not covered by the EPF and the members are to bear any losses

made.[2]

Compared to those declared by several other agenda, the EPF declares an annual dividend on

funds collected which has been progressively declining since 1987:[citation needed]

1983 to 1987

1988 to 1994

1995

1996

1997 to 1998

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

8.5%

8.0%

7.5%

7.7%

6.7%

6.84%

6.00%

5.00%

4.25%

4.50%

4.75%

5.00%

5.15%

5.80%

4.50%

5.65%

5.80%

Legally, the EPF is only obligated to provide 2.5% dividends (as per Section 27 of the Employees

Provident Fund Act 1991).[4]

The EPF claims that the lowered dividend is the result of its decision to invest in low-risk fixed

revenue instruments, which produce lower returns but maintains the principal value of its

members' contributions. This is due to the EPF primarily aimed at providing a stable financial

security of its members.[5]

In addition, the EPF further elaborates dividend rates and their performances are calculated and

influenced based on the full distribution of net EPF revenue, depending on the return on

investments that in turn is based on asset allocation.[6]

The EPF also attributes the declining interest market rate since 1996 to the interest market rate.

Because 75% of investment funds are concentrated towards bodies closely linked to trends in the

interest market rate, including Malaysian Government Securities, loans or bonds, and money

market instruments, low interest rates for the past few years had an adverse effect on returns for

EPF investments.[6]

In April 2007, criticism was raised at a proposed amendment of EPF guidelines (the EPF Bill

(Amendment) 2007) that cuts monthly contributions of members above 55 years by 50% (6.2%

from 11% for employees, and 5.7% from 12% for employers).[7] The change was described as a

disadvantage to tens and thousands of members compared to those under the pension scheme

as the former is not given free medical treatment after retirement, and was described as a form of

discrimination towards senior members.[7] Under the proposal, an employer of foreign workers

may also optionally contribute RM5 monthly per head, raising concerns of employers' preferences

towards foreign employees.[7] The government responded by claiming that the proposal may be

studied,[8] and later states that members can contribute at any amount above the slashed

contributed amount.[9] The EPF guideline for employers of foreign workers remains unchanged,

citing that the policy has been implemented before in 1998.[9]

[edit]Withdrawal

As a retirement plan, money accumulated in an EPF savings can only be withdrawn when

members reach 50 years old, during which they may withdraw only 30% of their EPF; members

who are 55 years old or older may withdraw all of their EPF.[1] When a member dies beforehand,

the EPF fund is withdrawn in favour of a nominated individual.[10] Withdrawals are also possible

when a member will emigrate,[11]becomes disabled,[12] or requires essential medical treatment.

[13] Members above 55 years old can choose not to withdraw EPF savings immediately and

withdraw only later, and, under existing guidelines, employers may continue to contribute 12% of

the members' salaries at their own discretion.[9]

[edit]Accounts

Effective 1 January 2007, a member's EPF savings consists of two accounts that vary by their

share of savings and withdrawal flexibilities. The first account, dubbed "Account I", stores 70% of

the members' monthly contribution, while the second account, dubbed "Account II", stores 30%.

Account I restricts withdrawals to the moment the member reaches an age of 55 years old, is

incapacitated, leaves the country or passes away. Withdrawal of savings from Account II

however, is permitted for down payments or loan settlements for a member's first house, finances

for education and medical expenses, investments, and the time when the member reaches 50

years of age.[14]