ABSTRACT
While the first category of fringe benefits viz., ‘social security’ has already been taken care of in Chapter 7, the remaining two categories, viz., ‘labour welfare’, and ‘bonus’ are dealt with in the present chapter, which also contains discussions on internal audit of compensation and benefits towards the end of the chapter. Coming to the second category of fringe benefits, i.e. ‘labour welfare’, first of all, its meaning and definition, objectives, significance, principles, etc., have been discussed. Labour welfare work has been divided into three categories viz., (i) statutory welfare, i.e. which is mandatory to be undertaken by organizations because of various directives and acts passed by the Central and State governments, (ii) mutual labour welfare work which is taken care of by trade unions of workers, and (iii) voluntary labour work which is undertaken by employers at their own without any compulsion by the government etc. A detailed discussion on labour welfare work undertaken by various Indian organizations is found in the chapter. Thereafter, recent trends/developments regarding labour welfare work, with lots of examples, have been discussed. The third category of fringe benefits viz., ‘bonus’ has been dealt with in the context of the Payment of Bonus Act, 1965 has also been discussed. The last part of the chapter discusses the internal audit of compensation and benefits. After explaining the planning and definition of auditing, it has been pointed out as to ‘what is done in internal auditing’ and ‘why internal auditing of compensation and auditing processes’. Compensation and benefits structure and internal audit tasks involved, methods of conducting the audit, risks involved in compensation and benefits internal auditing, etc., have been discussed. The chapter ends with the drafting of management strategy in this regard, followed by the chapter review, discussion questions, individual and group activities and case study.
