Introduction
Statutory welfare provisions refer to those welfare facilities and benefits that are mandated by law to ensure the health, safety, and well-being of employees. These are essential components of labor laws and are applicable across various industries including tourism and hospitality.
List of Statutory Welfare Provisions
- Provision of drinking water
- Facilities for washing and drying clothes
- First aid appliances
- Restrooms and lunchrooms
- Canteens for staff (for organizations with 100+ employees)
- Creche facilities for working mothers
- Sanitary and hygienic working conditions
- Safety equipment and protective gear
- Medical check-ups and health services
- Employee insurance and social security
Employees State Insurance Act, 1948 – Detailed Explanation
The Employees State Insurance (ESI) Act, 1948 was introduced to provide socio-economic protection to workers in India. It is a self-financing health insurance scheme for Indian workers.
Coverage
Applicable to establishments with 10 or more employees and covers workers earning ₹21,000 or less per month.
Contributions
- Employer contributes 3.25% of the wages
- Employee contributes 0.75% of the wages
Benefits Offered
- Medical Benefits: Free medical treatment for insured persons and their families.
- Sickness Benefit: Cash compensation during certified sickness (up to 91 days in a year).
- Maternity Benefit: Paid leave for expecting mothers.
- Disablement Benefit: Monthly payments for temporary or permanent disablement due to employment injury.
- Dependents’ Benefit: Financial support to dependents in case of employee’s death due to work injury.
- Funeral Expenses: A lump sum for the last rites of a deceased insured person.
Administration
The ESI scheme is administered by the Employees’ State Insurance Corporation (ESIC), an autonomous body under the Ministry of Labour and Employment.
Conclusion
Statutory welfare provisions like those under the ESI Act ensure that employees are protected and supported during medical emergencies, sickness, maternity, or workplace injuries. These measures are crucial for the social security and well-being of employees, especially in labor-intensive sectors like hospitality and tourism.