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Chapter 20

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HUMAN RESOURCE MANAGEMENT …

HUMAN RESOURCE MANAGEMENT
V S P RAO
EXCEL BOOKS

Published in: Business, Economy & Finance

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  • 1. SOCIAL SECURITY Chapter EXCEL BOOKS 20-1 20
  • 2. ANNOTATED OUTLINE 20-2 INTRODUCTION The basic purpose of social security is to protect people of small means from risks (such as accidents, illness, invalidity, disease, old age etc) which impair a person’s ability to support himself and his family. Social Security
  • 3. 20-3 Objectives of social security
    • Social security measures aim at three things
    • Compensation: Offer financial help when the worker is in a state of physical distress due to accidents, sickness, invalidity, disease, and old age.
    • Restoration: Enable the worker to recover from the shocks injected by the inhuman industrial work, rehabilitate himself and get on with his work in a usual manner.
    • Prevention: Extend monetary assistance to workers so that they can get rid of sickness, idleness, disease etc.
    Social Security
    • Social security benefits are provided in two major ways in India:
    • Social insurance: In this scheme, a common fund is established with periodical contributions from workers out of which all benefits in cash or kind are paid
    • Social assistance: In this case, benefits are offered to persons of small means by the government out of its general revenues.
  • 4. 20-4 Social security benefits extended to workers in India may be put under the following heads Social Security Social Security in India Social security benefits in India
    • Medial care
    • Sickness benefit in cash
    • Old age pension or retirement benefits
    • Invalidity pension
    • Maternity benefit
    • Accident benefit
    • Survivor’s benefit
  • 5. 20-5 The Workmen’s Compensation Act, 1923 Welfare facilities could be classified into two categories; Intramural (provided within the establishment) and Extramural (undertaken outside the establishment ). Intramural and Extramural welfare measures: ILO Social Security
    • The Act aims at compensating the worker adequately in case of injuries or accidents suffered by him during and in course of employment.
    • Coverage: all workers employed in factories, mines, plantation, transportation, construction works, railways, ships etc; does not apply to casual workers
    • Administration: the commissions appointed by respective governments
    • Benefits: three conditions must be met:
    • There must be an injury
    • It should be caused in an accident
    • It must be caused during the course of employment
    • Assessment: entire liability for compensation is placed on the employer; so many employers in small industry find it difficult to pay the compensation.
  • 6. 20-6
    • The ESI Act offers medical help and unemployment insurance to industrial workers during their illness.
    • Coverage: all factories run with power, employing 20 or more persons drawing less than Rs. 3000 per month
    • Administration: ESI Corporation, an autonomous body set by the central government.
    • Funds: employer contributes 4% of the wage bill and employee contributes 1.5% of his own wages towards the ESI Fund
    • Benefits: the scheme provides for 5 types of benefits to injured persons through an extensive network of more than 500 centres all over India:
    Social Security The Employee’s State Insurance Act, 1948
  • 7. 20-7 Social Security
      • Sickness benefits
      • Maternity benefits
      • Disablement benefits
      • Dependents' benefits
      • Funeral benefits
      • Assessment: Not popular with unions and employees, as many complain
      • About inadequacy of facilities and benefits. There is considerable delay
      • In making payments to workers. Employers often get away without
      • Making any payments to injured persons
    The Employee’s State Insurance Act, 1948
  • 8. 20-8
    • It provides for payment of maternity benefits to women workers on certain conditions;
    • Benefits: maternity leave upto 12 weeks; with full wages; additional sum of Rs.25 paid if employer offers no medical care; the women employee, however, must have worked for at least 100 days in 12 preceding months
    • Assessment: employers discharge women employees on first signs of pregnancy and thereby escape liability; most women employees are ignorant about the provisions of the act, and do not claim benefits.
    The Maternity Benefits Act, 1961 Social Security
  • 9. 20-9 Social Security The Employees’ Provident Funds And Miscellaneous Provisions Act, 1952 The EPF and Miscellaneous Provisions Act offers retirement benefits to workers in the form of provident fund, pension and deposit linked insurance. Group Insurance Group life insurance scheme provides insurance cover to several employees working under one employer, as long as they remain in service of that employer.
  • 10. 20-10 Social Security An Overview of Social Security Measures In India Social security measures have not been able to live up to the expectations of workers in India on account of several reasons. why social security measures have failed to live up to the promise?
    • Cover only workers in organised sector.
    • Does not offer unemployment insurance
    • Several schemes hare in-built weakness; as a result, the beneficiaries are put to lot of trouble and inconvenience.
    • Lack of funds, facilities, trained staff to implement the schemes.
    • There is considerable overlapping of schemes
    • Most measures are in the nature of social assistance and not social insurance.
    • Mostly employers have to make contributions.