EXAM NOTES
Labour Welfare & Social Security — Module IV
Topics: Working Conditions of Labour | ILO Conventions on Social Security
PART 1: WORKING CONDITIONS OF LABOUR
1.1 What Are Working Conditions?
Working conditions means the overall environment in which a worker does their job. It is not just
about wages — it covers everything around the worker that affects their health, comfort, safety
and dignity at the workplace.
Working conditions include:
• Physical conditions — safety, cleanliness, lighting, ventilation, temperature
• Regulation of working hours, rest breaks, overtime and leave
• Social and psychological environment — respect, no harassment, fair treatment
• Welfare facilities — drinking water, toilets, canteens, first aid
Simple Definition: Working conditions = everything that surrounds a worker while they do
their job. If conditions are bad, the worker suffers physically and mentally. If conditions are
good, the worker is healthier, happier and more productive.
1.2 Why Are Good Working Conditions Important?
Good working conditions matter for multiple reasons:
• Protect workers from accidents, diseases, and exploitation
• Increase worker efficiency and productivity
• Improve motivation and job satisfaction — workers feel valued
• Reduce industrial disputes, strikes and absenteeism
• Contribute to national economic growth
Exam Tip: Remember this line — 'Working conditions are not merely employer obligations
but a social necessity.'
1.3 Historical Background in India
Colonial Period
During British rule in India:
• Working conditions were extremely poor — long hours, no safety, child labour
• Employers cared only about profit; labour was treated as cheap and replaceable
• Early laws only tried to stop extreme exploitation (e.g., Factories Act 1881)
• These laws did not cover workers in the unorganised sector
Post-Independence
After 1947, India adopted a welfare state model:
• Labour welfare became a state responsibility
• Comprehensive labour laws were passed (Factories Act 1948, Mines Act 1952, etc.)
• Focus shifted from charity to rights — workers had legal protections
• The First Five-Year Plan (1951-56) emphasized labour welfare strongly
1.4 Legal Regulation of Working Conditions in India
Several important laws regulate working conditions:
• Factories Act, 1948 — governs factories with power (10+ workers) or without power (20+
workers)
• Mines Act, 1952 — regulates health, safety and welfare in mines
• Plantations Labour Act, 1951 — covers tea, coffee, rubber plantations
• Dock Workers (Safety, Health and Welfare) Act, 1986 — governs port/dock workers
These laws make it compulsory for employers to:
• Maintain basic standards of safety, health and welfare
• Provide facilities like drinking water, toilets, first aid
• Follow limits on working hours and overtime
1.5 Physical Facilities Required at the Workplace
Under Indian law, employers must provide:
• Clean and hygienic premises
• Proper lighting and ventilation
• Safe drinking water at convenient points
• Adequate separate toilet and washing facilities for men and women
• First aid boxes and medical assistance
• Canteen and rest rooms (in establishments of a certain size)
Mines Act Example (Section 19-21): Every mine must have cool drinking water, separate
latrines for men and women, and first-aid boxes readily available during working hours.
1.6 Health and Safety Measures
Employers must ensure:
• Protection from dangerous machinery — safety guards and equipment
• Protective equipment for workers handling hazardous materials
• Training in accident prevention
• Emergency exits and fire safety arrangements
• Regular health check-ups, especially where chemicals/toxic substances are used
Plantations Labour Act (Section 18A): Plantation employers must train workers handling
insecticides and chemicals, maintain health records of such workers, provide protective
clothing, and display permissible chemical concentration limits at the workplace.
1.7 Regulation of Working Hours
An important aspect of working conditions is time regulation:
• No worker shall work more than 8 hours a day or 48 hours a week (OSH Code 2020)
• Workers must get rest intervals during the shift
• Overtime work must be paid at TWICE the normal rate
• Workers must get weekly holidays and annual leave
Important Change (OSH Code 2020): Eligibility for paid leave was reduced from 240 days
to 180 days of work in a calendar year. This is more worker-friendly.
1.8 Working Conditions in the Unorganised Sector
India has a huge unorganised sector (about 92% of workers). Their conditions are very difficult:
• No job security — can be fired anytime without notice
• Very long working hours — no legal protection in practice
• Health hazards — exposure to dust, chemicals, unsafe tools
• Low wages and often delayed payments
• Weak bargaining power — no trade unions
• Risk of sexual harassment, especially for women
• No social security benefits — no PF, ESI, gratuity
Key Fact: Most labour laws apply only to the organised sector. The vast majority of Indian
workers in the unorganised sector remain largely unprotected in practice.
1.9 Problems in Implementation of Labour Laws
Even where laws exist, implementation fails because of:
• Weak enforcement machinery — too few labour inspectors
• Lack of awareness among workers about their rights
• Employer resistance to complying with welfare standards
• Growth of contract and casual labour — makes enforcement harder
• Corruption and administrative inefficiency
1.10 Impact of Globalisation on Working Conditions
Globalisation has created new challenges:
• Pressure to reduce labour costs → employers cut corners on welfare
• More outsourcing and contract labour → workers have fewer permanent jobs
• Longer working hours to compete globally
• Weakening of trade unions → workers have less bargaining power
• More insecure employment — short-term contracts, gig work
Exam Tip: Globalisation = new challenges for working conditions. Always connect this with
informality, contract labour, and weakened unions.
1.11 Technology and New Forms of Work
New technology has created new issues:
• Automation displaces workers — jobs are lost to machines
• Rise of gig economy (Zomato, Ola, etc.) — workers have no employment security
• Platform workers lack traditional employer-employee relationships
• Need for new skills creates a digital divide
• Working conditions must be redefined to address these new realities
1.12 Meaning of Labour Welfare
Labour welfare is a broader concept than just working conditions. It means:
• All services, facilities and benefits provided for worker well-being
• Measures beyond mere payment of wages
• Provisions for health, comfort, safety and social security
• Covers the entire life cycle of the worker — from employment to old age
1.13 Elements / Dimensions of Labour Welfare
Physical Welfare
Improving workplace conditions to protect health, safety and well-being — clean premises,
safety guards, proper lighting, etc.
Economic Welfare
• Fair wages in line with industry standards and cost of living
• Bonuses and profit-sharing — motivates workers and improves satisfaction
Educational Welfare
• Skill development and vocational training — improves employability
• Adult literacy programmes — helps workers manage personal and work challenges
Key Line: These three dimensions together determine the 'quality of work life' of labour.
1.14 Modern Concept of Labour Welfare
Today, labour welfare is understood as:
• A statutory obligation of employers — not charity but a legal duty
• An integral part of social security
• Essential for productivity and industrial peace
• A tool for ensuring human dignity
• A mechanism for inclusive economic development
The scope has expanded to include: provident fund and pension, health insurance, maternity
benefits, housing and education, skill development and training.
1.15 New Challenges to Labour Welfare
• Growth of informal and gig economy — benefits do not reach these workers
• Automation and technological displacement
• Weak enforcement of laws
• Economic inequalities — welfare not equally distributed
• Global competitive pressures pushing down labour standards
Conclusion: Labour welfare policies must continuously evolve to address new challenges. The
most serious gap in India remains the absence of social security for unorganised sector workers
who form nearly 92% of the workforce.
PART 2: ILO CONVENTIONS ON SOCIAL SECURITY
2.1 What Is Social Security? (ILO Definition)
The International Labour Organisation (ILO) defines Social Security as:
ILO Definition: "The security that society furnishes through appropriate organisation against
certain risks to which its members are perennially exposed. These risks are contingencies
against which an individual of small means cannot effectively provide by his own ability or
foresight alone or even in private combination with his fellows."
In simple words: Social security means the protection that a society gives its members against
risks like illness, old age, unemployment, accidents, and poverty — risks that an individual alone
cannot handle.
2.2 The Nine Branches (Contingencies) of Social Security
The ILO identifies NINE types of risks/contingencies that social security covers. These are
called branches:
No. Branch / Benefit What It Means (Simple)
1 Medical Care Free or subsidised healthcare when you are sick
2 Sickness Benefit Money paid when you cannot work because of illness
3 Unemployment Benefit Money paid when you lose your job
4 Old-Age Benefit Pension paid after retirement
5 Employment Injury Benefit Money/care if you are injured at work
6 Family Benefit Support for families with children
7 Maternity Benefit Money and medical care for pregnant women
8 Invalidity Benefit Support if you become permanently disabled
9 Survivors' Benefit Money paid to family when the worker dies
Memory Trick: M-S-U-O-E-F-M-I-S = 'My Sister Usually Organises Events For Many
Interested Students' — Medical, Sickness, Unemployment, Old-age, Employment Injury,
Family, Maternity, Invalidity, Survivors.
2.3 Overview of ILO Social Security Standards
ILO social security standards consist of two layers:
Layer 1: Foundation Documents (1944)
• Income Security Recommendation, 1944 (No. 67) — envisions comprehensive income
protection for all
• Medical Care Recommendation, 1944 (No. 69) — envisions comprehensive healthcare for
all
These two recommendations laid the foundation for Convention No. 102.
Layer 2: The Core Convention (1952)
• Social Security (Minimum Standards) Convention, 1952 (No. 102) — the most important
ILO convention on social security
Layer 3: Higher Standard Conventions (post-1952)
Several specific conventions set higher standards for individual branches.
2.4 Convention No. 102 — Social Security (Minimum Standards), 1952
This is the most important and foundational ILO social security convention. Everything else
builds on it.
What it does: Sets minimum standards for all nine branches of social security. A country
ratifying this convention agrees to guarantee at least these minimum levels of protection to
its workers.
Key features:
• Covers all nine branches: medical care, sickness, unemployment, old age, employment
injury, family, maternity, invalidity, survivors
• Flexible ratification: A country need NOT accept all nine branches at once. It can start with
at least THREE branches and add more branches gradually.
• This flexibility allows developing countries to ratify the convention and progressively build
their social security system.
Benefit Rates under C-102: Sickness/Unemployment/Maternity benefits = at least 45% of
reference wage. Old-age/Invalidity/Survivors = at least 40% of reference wage. Employment
Injury = at least 50% (incapacity) and 40% (survivors) of reference wage.
2.5 Higher Standard Conventions After C-102
After Convention No. 102, the ILO adopted specific conventions for each branch with higher
standards. Here is a branch-by-branch comparison:
A. Medical Care & Sickness — Convention No. 130 (1969)
• C-102: Basic medical care (GP, specialist, medicines, prenatal/postnatal care,
hospitalisation)
• C-130: All of C-102 PLUS dental care and medical rehabilitation
• C-102 Sickness Benefit: at least 45% of reference wage
• C-130 Sickness Benefit: at least 60% of reference wage. ALSO provides funeral expenses
on death of beneficiary.
B. Unemployment — Convention No. 168 (1988)
• C-102: Periodical payments of at least 45% of reference wage
• C-168: Periodical payments of at least 50% of reference wage
• C-168 additional: Total benefits must guarantee healthy and reasonable living conditions
as per national standards
C. Old Age, Invalidity & Survivors — Convention No. 128 (1967)
• C-102: Periodical payments of at least 40% of reference wage. Rates must be revised
when earnings/cost of living changes substantially.
• C-128: Periodical payments of at least 45% of reference wage. Same revision conditions
apply.
D. Employment Injury — Convention No. 121 (1964)
• C-102: Medical care + at least 50% of reference wage for incapacity/invalidity. Survivors'
benefit = at least 40% of reference wage.
• C-121: All of C-102 PLUS care at place of work. Incapacity/Invalidity = at least 60% (higher
than C-102). Survivors' benefit = at least 50% (higher than C-102). ALSO: supplementary
benefits for persons needing constant help of a third person. Obligation to prescribe
minimum payment amounts.
E. Maternity — Convention No. 183 (2000)
• C-102: Medical care (prenatal, confinement, postnatal) + cash benefit of at least 45% of
reference wage
• C-183: Medical benefits (prenatal, childbirth, postnatal, hospitalisation) + cash benefits = at
least TWO-THIRDS (66%) of previous earnings (much higher than C-102)
Exam Tip: For each branch, remember: C-102 = minimum standard, the specific convention
= higher standard with higher % of reference wage and more coverage. Maternity went from
45% → 66%.
2.6 Conventions for Migrant Workers' Social Security
Convention No. 118 — Equality of Treatment (Social Security), 1962
• Covers all nine branches of social security
• Requires ratifying states to give equal social security treatment to nationals of other
ratifying states (and their dependants) as to their own nationals
• Also covers refugees and stateless persons
• Purpose: Migrant workers should not lose social security rights when they move to work in
another country
Convention No. 157 — Maintenance of Social Security Rights, 1982
• Provides reinforced protection for migrant workers
• Ensures that social security entitlements earned in one country are maintained when a
worker moves to another country
• Works alongside Convention No. 118
Simple Explanation: These two conventions protect workers who go abroad to work.
Without these conventions, a migrant worker could lose their pension or other rights earned
in their home country.
2.7 Social Protection Floors Recommendation, 2012 (No. 202)
This is a Recommendation, not a Convention (so it cannot be ratified — it only gives guidance).
It provides guidance for:
• Establishing and maintaining social protection floors — a minimum level of social security
for EVERYONE, including informal workers
• Implementing social protection floors as part of broader strategies to extend social security
upward over time
• Based on the idea that everyone deserves at least a basic level of social protection
regardless of employment status
Key Concept: Social protection floor = the basic minimum level of social security that every
country should guarantee to all its residents, including unorganised and informal workers.
2.8 Summary Table — All Key ILO Conventions
Convention Year / No. What It Covers
Income Security 1944 / No. 67 Comprehensive income protection — foundational document
Rec.
Medical Care Rec. 1944 / No. 69 Comprehensive medical care — foundational document
Social Security 1952 / No. 102 ALL nine branches; minimum standards; flexible ratification (3
(Min. Standards) branches minimum)
Employment Injury 1964 / No. 121 Employment injury (higher standard than C-102: 60% wage)
Benefits
Invalidity, Old-Age 1967 / No. 128 Old-age, invalidity, survivors (higher: 45% wage)
& Survivors
Medical Care & 1969 / No. 130 Medical care + sickness (higher: 60% wage + dental +
Sickness rehabilitation)
Equality of 1962 / No. 118 Equal SS rights for migrant workers — India HAS ratified this
Treatment (SS)
Maintenance of SS 1982 / No. 157 Portability of SS rights for migrant workers
Rights
Employment 1988 / No. 168 Unemployment benefit (higher: 50% wage)
Promotion &
Protection
Maternity 2000 / No. 183 Maternity benefit (higher: 66% of previous earnings)
Protection
Social Protection 2012 / No. 202 Guidance for basic minimum social security for all (including
Floors Rec. informal workers)
2.9 India's Ratification Status
Conventions India HAS Ratified
• Convention No. 118 — Equality of Treatment (Social Security), 1962
India has ratified only this one convention on social security. Under this convention, India
provides equal social security rights to nationals of other countries that have also ratified this
convention.
Conventions India Has NOT Ratified
India has NOT ratified the following important conventions:
• C-102 — Social Security (Minimum Standards), 1952
• C-130 — Medical Care and Sickness Benefits, 1969
• C-168 — Employment Promotion and Protection against Unemployment, 1988
• C-128 — Invalidity, Old-Age and Survivors' Benefits, 1967
• C-121 — Employment Injury Benefits, 1964
• C-183 — Maternity Protection Convention, 2000
• C-157 — Maintenance of Social Security Rights, 1982
Critical Exam Point: India has ratified only ONE ILO social security convention (C-118). It has
NOT ratified the core convention C-102, meaning India's social security system does not
formally meet the ILO minimum international standards. However, India does have domestic
laws that provide similar protections in the organised sector.
2.10 Purpose of Social Security Measures
The ILO and Indian law both recognise that the purpose of social security is to:
• Give individuals and families confidence that their standard of living will not fall due to
social or economic adversity
• Provide medical care and income security against defined contingencies
• Help victims with physical and vocational rehabilitation
• Prevent or reduce ill health and workplace accidents
• Protect against unemployment by maintaining and creating jobs
• Provide benefits for the maintenance of children
2.11 Problems of Social Insecurity in India
General Problems
• Economic insecurity from unemployment, illness, disability and poverty
• Large unorganised sector (92%) with virtually no social security coverage
• Many informal workers lack contracts, so labour laws do not apply to them
• Illiteracy and unawareness — workers do not know their rights
• Corruption and bureaucracy prevent benefits from reaching workers
SEWA Example
The Self Employed Women's Association (SEWA) — a trade union of lakhs of women in India's
informal economy — shows the gap well:
• SEWA members have no fixed employer-employee relationship
• They are not covered by protective labour legislation
• High cost of healthcare leads to non-treatment, worsening health, debt
• SEWA works to deliver social security and health services to these women through
awareness and direct service delivery
2.12 Indian Constitution and Social Security
India's constitutional basis for social security comes from the Directive Principles of State Policy
(DPSP):
• Article 38: State must secure a social order for the welfare of the people
• Article 39(a): State must ensure all citizens have an adequate means of livelihood
• Article 41: Right to work, education and public assistance in cases of unemployment, old
age, sickness and disablement
• Article 42: Provision for just and humane conditions of work and maternity relief
• Article 43: State shall try to secure a living wage and conditions ensuring a decent
standard of life
Constitution Basis: Social security in India is part of the Concurrent List (List III, Seventh
Schedule) — Items 23 (social security, employment) and 24 (labour welfare including PF,
compensation, invalidity, old age pension, maternity).
2.13 Key Indian Social Security Laws
• Employees' State Insurance Act, 1948 — sickness, maternity, employment injury benefits
• Employees' Provident Funds & Miscellaneous Provisions Act, 1952 — PF, pension,
insurance
• Employees' Compensation Act, 1923 — compensation for work accidents and
occupational diseases
• Maternity Benefit Act, 1961 — maternity leave and benefits
• Unorganised Workers' Social Security Act, 2008 — welfare schemes for informal workers
• Code on Social Security, 2020 — consolidates 9 laws; includes gig/platform workers for
the first time
2.14 Code on Social Security, 2020 — Key Highlights
This code is a major reform. It merges nine existing social security laws into one:
• For the FIRST TIME, gig workers (Zomato, Ola drivers etc.) and platform workers are
formally recognised and entitled to social security benefits (Sections 113 & 114)
• Gratuity eligibility for fixed-term employees reduced from 5 years to 1 year
• EPF extended to ALL establishments with 20+ employees (regardless of industry type)
• Inspector replaced by 'Inspector-cum-Facilitator' — helps employers comply instead of just
policing
• Criminal penalties replaced with fines for 13 offences — promotes ease of doing business
• Career Centres established to connect job seekers with employers
Gap in India: The most serious lacuna in India's social security network is the near-total
absence of social security measures for the unorganised sector workforce, which constitutes
nearly 92% of total labour.
QUICK REVISION — KEY POINTS TO REMEMBER
Working Conditions — Must-Know Points
• Working conditions = physical, regulatory, social, and psychological environment of work
• Legal basis: Factories Act 1948, Mines Act 1952, Plantations Labour Act 1951, Dock
Workers Act 1986
• OSH Code 2020 = max 8 hours/day, 48 hours/week; overtime = TWICE the wage rate
• Paid leave eligibility reduced from 240 to 180 days (OSH Code 2020)
• 92% of Indian workers are in unorganised sector with poor/no working condition
protections
• Globalisation → more contract labour, weaker unions, longer hours
• Labour welfare = physical + economic + educational welfare together = 'quality of work life'
ILO Conventions — Must-Know Points
• ILO Social Security = protection against 9 branches: Medical, Sickness, Unemployment,
Old Age, Employment Injury, Family, Maternity, Invalidity, Survivors
• C-102 (1952) = core convention, sets MINIMUM standards, needs only 3 branches to start
• C-102 benefit rates: 40-50% of reference wage depending on branch
• Later conventions = higher standards (60-66%) for specific branches
• C-130 (1969) = Medical + Sickness, 60% rate + dental care
• C-128 (1967) = Old Age, Invalidity, Survivors, 45% rate
• C-121 (1964) = Employment Injury, 60% rate + 50% for survivors
• C-183 (2000) = Maternity, TWO-THIRDS (66%) of previous earnings
• C-168 (1988) = Unemployment, 50% rate
• C-118 (1962) = Migrant workers' equal treatment — INDIA RATIFIED THIS
• C-202 (2012) = Social Protection Floors Recommendation (not a convention)
• India has NOT ratified C-102 (the core convention)
All the best for your exams!