Labor welfare focused on taking care of the well-being of workers by employers, trade unions, governmental and non-governmental institutions, and agencies. Welfare can be best explained as, any efforts that are planned and carried out for the comfort and improvement of employees and provided over and above the wages. Welfare no only benefits the employees as it keeps their morale and motivation levels high, but also helps employers retain loyal and hard work employers for a long duration.

According to experts of coursework writing firm, HRM has a big responsibility in an organization and plays a key role in ensuring the smooth running of operations. It aims to protect the interest of both the employees and the employer. For employees, the HRM works hard to protect their rights, ensuring that employers operate within the scope of employment and labor law. Employee welfare for the workers and their families includes:

  • Monitoring of working conditions
  • Creation of industrial harmony through infrastructure for health, industrial relations
  • Insurance against disease, accident, and unemployment

According to Industrial Labor Organization, labor welfare can be defined as a term, which is understood to include such services, facilities, and amenities as may be established in or in the vicinity of undertakings to enable the persons employed in them to perform their work in healthy, congenial surroundings and to provide them with amenities conducive to good health and high morale.

Oxford dictionary labor welfare as, “efforts to make life worth living for workmen.” The need for providing such services and facilities arises from the social responsibility of industries, a desire for upholding democratic values, and a concern for employees. Here, it is important to understand that welfare measures do not necessarily have to be in monetary terms only, but they can be of any kind.

Significance Of Labor Welfare:

  • It improves the morale and mental conditions of the workers by providing them a chance to enjoy facilities like games, cultural activities, and recreation, etc. that enhance their productivity.
  • Workers who are provided more facilities have more confidence in their employer; they know they are cared for which leads to improving industrial peace.
  • When workers are promoted and rewarded systematically, they realize their duties towards enterprise and feel more responsible, which motivates them to perform better.
  • When workers are rewarded well for their hard work, loyalty, and years of service, they feel happy and passionate about their jobs; they take a better interest in their work which leads to enhanced efficiency
  • Annual medical checkups to maintain the health of workers and protecting them from the harmful effects of industrial waste can go a long way in keeping them motivated for their jobs
  • Noise and vibrations caused by machines, fumes, and dust, heat as well as too much stress are the main factors that affect the overall health and performance of workers

Labor welfare is very important because only a healthy and content worker will be able to work hard and produce better results. Employers must keep in mind the significance of labor welfare and work on offering the best facilities as amenities that are conducive to high morale and performance.

Objectives Of Labor Welfare:

Labor welfare has the following objectives:

  • It aims to provide better life and health to the workers
  • It strives to make the workers happy and satisfied
  • It relieves the workers from industrial fatigue by improving intellectual, cultural, and material conditions, including where they live
  • It includes various facilities, services, and amenities provided to workers for improving their health, efficiency, economic betterment, and social status

It is important to realize that welfare measures are in addition to regular wages and other economic benefits available to workers due to legal provisions and collective bargaining. These labor welfare schemes are flexible and ever-changing depending on the industry as well as the competition in the market. Organizations keep on adding welfare measures to the existing ones from time to time to ensure their workers’ peace of mind and work productivity.

Welfare measures may be introduced by employers, government, employees, or by any social or charitable agency. No matter who has introduced them or how, the main purpose behind labor welfare remains the same; it is all about the development of the whole personality of the workers to prepare a better workforce. The labor welfare schemes can be classified into two categories; statutory and non-statutory. The statutory schemes are compulsory to provide by an organization as compliance with the laws governing employee health and safety. The non-statutory schemes differ from organization to organization and from industry to industry.

Statuary Welfare Benefits:

The statutory welfare benefits schemes include the following provisions:

  • Drinking-Water
  • Facilities for
  • First aid appliances
  • Washrooms and urinals
  • Canteen facilities
  • Spittoons
  • Lighting
  • Washing places
  • Changing rooms
  • Restrooms
  • Maternity & Adoption Leave
  • Medi-claim Insurance Scheme
  • Sexual Harassment Policy

Many non-statutory welfare benefits may include the following schemes:

  • Personal health care, including regular medical check-ups
  • Flexi-time
  • Employee assistance programs
  • Employee referral scheme

Also Read This: Importance of Compensation Management in Human Resource

Labor welfare or employee welfare is a dynamic concept that can help employers reach their targets and goals in a much better way if their employees are happy and content. It can include anything from services, facilities, and benefits that motivate employees and raise productivity levels. It might seem to increase the company’s expenses, but in the long run, it helps employers to save a lot of money and build a team of reliable, professional, and motivated workers who will work for them not just for the monetary benefits but for the commitment and care they received.

It is important to note that an employee who feels appreciated will be more fulfilled, satisfied, and more productive and strive to satisfy the customers, hence increasing profit margins for the company. Good labor welfare enables a company to compete with the competition in the market for the recruitment and retention of quality personnel. By fostering a genuinely caring atmosphere that focuses on employee welfare, organizations can look forward to creating a stronger bond with the existing employees and attracting talented employees to join their company.