The term perquisites is often used colloquially to refer to those benefits of a more discretionary nature. Often perk are given to employees who are doing notable well/or have seniority. Perquisites are strictly restricted to the CEOs and that small group of key officials who comprise the senior management of the organization.
Rent free accommodations Perquisites in respect of motor cars. Gas ,electricity ,water supply. Free education Free transport Leave travel concession(ltc). Employee stock options(ESOP’S).
Any privilege, service, facility or amenity, directly or indirectly provided by employer to employee. Any reimbursement for any purpose. Any free or concessional ticket for private journey of employees and family members. The fringe benefits refer to various extra benefits provided to employees, in addition to compensation paid in form of salaries.
To create and improve sound industrial relation. To boost up employee moral. To motivate employee. To provide qualitative work environment. To provide security to employee against social risk. To promote employees welfare by providing welfare measures like recreation facilities.
EMPLOYEE DEMAND TRADE UNION DEMAND EMPLOYER PREFERANCE AS A SOCIAL SECURITY TO IMPROVE HUMAN RELATION
For employee security. For health protection. For old age and retirement. For personal identification.
Payment for the time not worked. Hazard protection. Employee service. Legal payments.
Payment for time not worked:-benefits under this category includes sick leave with pay, vacation pay ,paid lunch periods. Hazard protection:-organization provide their employee with verity of insurance services to help them and there families maintain a normal standard of living when unexpected health related adversities occurs. Employee service:-
Legal payments:-these are amenities which are necessary to be provided to the employees under different labor legislations. 1.The employee state insurance act 1948. 2. The employee provident fund act 1952. 3.The workman compensation act 1923 4. The maternity benefit act, 1961. 5. The payment of gratuity act 1972.
In addition to fringe benefits ,organization also provide a wealth of services that employee find desirable. These services are usually provided to the employees at no cost to the employee or at a significant reduction from what might have to be paid without organization support.
Service related to type of work performed including subsidies for the purchase or upkeep of work clothing and uniform and of the various types of tools used by worker in the course of his work. Eating facilities which include co. resturant ,canteen etc. Transporting facilities including parking lots and bus services. Child care facilities.
Housing services. Financial and legal services including sponsoring of loan funds etc. Medical services including clinics and hospitals.
Since less time is lost due to tardiness , the ratio of man-hours worked to man hours paid increases. Absenteeism is reduced. The hour actually worked seems to be more productive. The distinction between the management and professional workers is reduced and more authority is delegated by supervisors.
Flextime is complicated to administer and may be impossible to implement where large group of worker must work independently. It requires the use of time clocks or other time records ,which might irritate the worker’s.
When the employer’s federation of India conducted a study of fringe benefits in the country ,it was revealed that in 1960,981 co. which were included in the survey, paid a little over Rs. 2,148.3 million in wages and fringe benefits, and that the latter was about 21.3 percent of their total wage bill in that year. The fringe benefits were high in mining 24.84% of the wage bill, and plantation industries 24.3%and were competitively low in manufacturing sector19.99%of the wage bill.