Employees Welfare Fund, Its Trends and Practices

Category: HR Insider | Date: | Total Views: 4799

Tags: HR Insider


Organized by Real Solutions Pvt Ltd on December 27, 2017, 66th HR Kurakani was held on the premise of Real Solutions, Minbhawan, New Baneshwar. Different participants from various companies participated in HR Kurakani on that day. The topic for the discussion was "Employees Welfare Fund- its Trends and Practices". The participants discussed that there are many policies and acts under Employees Welfare Fund, many of which are still not implemented.  

The employees welfare fund is obligatory, but it has not been implemented as mandatory in many of the organizations in Nepal. Welfare benefit plan is a type employee- sponsored employee welfare benefit plan. Different organizations stated their different ways of implementing the welfare fund. The welfare amount should be clear and transparent to all the employees, which should be managed by certain committee members (also can be company members). If there are good numbers of people, the committee works best.

Some of the organizations have been using the Employees Welfare Fund for the recreational activity in Nepal, while others have used it for the training and education for the employees. Some organizations also use it for emergency funds.

The uses of Employees Welfare Funds are as follows:

Emergency Cash Requirement
The fund provides support to the employees when they are in urgent need of cash for some major causes. In Nepal, some organizations have been practicing this system of welfare in order to support the employees to be safe from such problems.

Recreational Activity
The fund amount is used for the recreational activity which not only freshens every individual of the organization but also helps them to create and maintain strong bonds among colleagues, promotes sensitivity to cultural diversity, create memories and offers a place for social interaction.

Training and Development
With the good amount in the fund, the organization can use the fund in several training for employees. The training could be by the demand of the employees or by Training Need Assessment. Also, it could be in-house and external training.  This system could make the employees more competent and independent.

Serious illness and Disease
In Nepal, some organizations use the fund for the emergency need of health payment. The fund is utilized by employees who have been suffering from serious illness or injuries and need heavy amount of money for the treatment.

Distribution to Every Staff
If the fund is not used for any of the above purposes, then the amount is taken by employees when they want to and when the law allows them to take. This is the most common type of practice that has been used by the organizations in Nepal for Employees Welfare Fund.

For more HR Kurakani blogs, click here.

job_kurakani_detail_page
Search, Apply & Get Job: FREE