Industrial Relations, Ir - Social Security....
Industrial Relations, Ir - Social Security....
Industrial Relations, Ir - Social Security....
The health & safety of the industrial workers traces a violent & painful
path through the decades with the management taking a carless & indifferent attitude
towards the workers safety. Many managements, following the traditional approach
have actually blamed the workers for the accidents.
However, during the 1960’s, nearly 5,00,000 of the workers either died or were
seriously injured for every year of that decade leading to a loss of nearly 23 million
working days annually on account of industrial injury and disease. This led
investigators to argue for both humanitarian as well as economic reasons, published
by Robins in 1972. Since Robins report, many employers have started taking an
interest in Occupational Health & Safety & the benefits it accords them.
The Occupational health & Safety model provides a new approach to workplace
safety “Shared responsibility Model” wherein the assumption is that the best way to
reduce levels of occupational accidents and disease relies on the cooperation of both
employers and employees.
No industry can live deprived from the society. Industries have & will
always be a part of society as it both receives as well as gives products & services to it.
Therefore, any adverse decisions made by the company with regards to the workers
will have major implications as poor workplace health & safety standards will lead
to,viz;
1. Loss of life or injury on part of worker & loss of mandays to the employer.
2. Heavy labour turnover & absenteeism
3. Loss of brand name among customers, society & competitors
4. Loss in profits
5. Loss of trust in Company by stakeholders.
Such safe workplaces are created by the Occupational health and safety specialists
and technicians, also known as safety and health professionals oroccupational health
and safety inspectors. They help prevent harm to workers, property, the environment,
and the general public. For example, they might design safe work spaces, inspect
machines, or test air quality. In addition to making workplace safer, these specialists
aim to increase worker productivity by reducing absenteeism and equipment
downtime—and to save money by lowering insurance premiums and workers’
compensation payments. Some specialists and technicians even work for governments,
conducting safety inspections and imposing fines. The ultimate goal of these specialists
is to ensure a safe & healthy working environment thereby reducing the risks of
accidents & work related injuries.
Perhaps more than any other HR activity, health and safety are the more important
functions of a HR or IR manager as they have an opportunity to be more proactive
than reactive and as such have to be designed & provided properly.
There are a number of strategies that are being used by organizations today to
ensure a healthy and safe workplace and ensure compliance with legal requirements.
Statistics have shown that managements which have taken a proactive role in such
programs have achieved 26% more profits as well as more productivity & lesser
labour turnover & absenteeism than other competitors in the same field.
SOCIAL SECURITY:
Social security is primarily a social insurance program providing social protection,
or protection against socially recognized conditions, including poverty, old age,
disability, unemployment and others. Social security may refer to:
The Social Security schemes in India cover only a small segment of the organized work
force, which may be defined as workers who are having a direct regular employer-
employee relationship within an organization.
The principal social security laws enacted in India are the following:
· The Employees’ State Insurance Act, 1948
· The Employees’ Provident Funds & Miscellaneous Provisions Act, 1952
(Separate provident fund legislations exist for workers employed in Coal mines and
tea plantations in the state of Assam and for seamen).
· The Workmen’s Compensation Act, 1923
· The Maternity Benefit Act, 1961
· The Payment of Gratuity Act, 1972
3. The Act is applicable only in notified areas, it is not applicable in non –notified
areas. In such cases, the other related acts such as “Maternity benefit acts”….
Are applicable.
4. Contributions : The contribution payable under this Act in respect of an
employee shall comprise contribution payable by the employer and
contribution payable by the employee, paid to the ESI corporation. The
contribution at the rate of 1.75% and 4.75% respectively of the wages of the
employee, culminating to a total of 6.5% of the wages.
5. Benefits: Subject to the provisions of this Act, the insured persons & their
dependants are entitled to receive;
Sickness Benefit
Maternity Benefit
Accident/ Disablement benefit
Dependant benefit
Medical Benefit
Funeral Benefit
1. An Act to provide for the institution of provident funds, pension fund and
deposit-linked insurance fund for employees in factories and other
establishments.
2. The Act aims at providing social security and timely monetary assistance to
industrial employees and their families when they are in distress and/or
unable to meet family and social obligations and to protect them in old age,
disablement, early death of the bread winner and in some other contingencies
3. Applicability : The Act is applicable to factories and other classes of
establishments engaged in specific industries, classes of establishments
employing 20 or more persons. The Act,
however does not apply to cooperative societies employing less than 50 persons and
working without the aid of power .The Act also does not apply to employees of the
Central Government or State Government or local authority.
4. Coverage: extends to the whole of India, excluding the state of Jammu &
Kashmir.
6. Contributions:
If the pay of the employee exceeds Rs.6500/- per month, the contribution
payable by the employer and the Central Contribution will be limited to the amount
payable on his pay
of Rs.6500/-.
• Superannuation pension.
· Early pension
· Permanent total disablement
· Widow or Widower’s pension
· Children pension or Orphan pension
· Nominee pension / dependent parents pension.
10. EMPLOYEES’ DEPOSIT LINKED INSURANCE SCHEME, 1976:
11. Employees’ Deposit linked Insurance Scheme, 1976 is applicable to
all factories/establishments with effect from August 01, 1976.
12. All the members of the Employees’ Provident Fund are required to become
members of this Scheme.
1. The main objective of the Act is to impose an obligation upon the employers to
pay compensation to workers for accidents arising out of and in course of
employment.
2. Applicability :The Act applies to any person who is employed otherwise than
in a clerical capacity, in railways factories, mines, plantations, mechanically
propelled vehicles, loading and unloading work on
a ship, construction, maintenance and repairs of roads and bridges, electricity
generation, cinemas, catching or trading of wild elephants, circus, and other
hazardous occupations and other employment specified in Schedule II to the Act. D
3. Benefits:
iii. The rate of compensation in case of death is an amount equal to 50 per cent of
the monthly wages of the deceased workman multiplied by the relevant factor
or an amount of Rs.80,000 whichever is more.
iv. Where permanent total disablement results from the injury, the compensation
will be an amount equal to 60 per cent of the monthly wages of the injured
workman multiplied by the relevant factor or an amount of Rs. 90,000,
whichever is more.
v. Where the monthly wages of a workman exceed four thousand rupees, his
monthly wages for the above purposes will be deemed to be four thousand
rupees only.
Maternity Benefits Act, 1961:
6. In case of death of the employee, the gratuity payable to him is to be paid to his
nominee, and if no nomination has been made then to his heirs.
7. Amount of Gratuity Payable – Method of Calculation:
In case of non –seasonal establishment:
Gratuity Payable = 15/26 days wages x No of completed years of service X Rate
of wages..
8. The maximum limit is 3.5 lacks.
Thus, these are the various acts which have provisions regarding to the social security
in INDIA.