- (1.) Retiral benefits such as provident fund, gratuity and pension schemes have been common in Government establishments. Such schemes were also introduced for the employees by certain enlightened employers. In addition to such benefits, the Industrial Disputes Act also makes statutory provisions of compensation on the termination of the service of an employee by way of retrenchment, on transfer or closure of an undertaking. Such social security measures have introduced an element of stability and protection in the midst of stress and strains of modern industrial life. As observed by the national Commission on Labour-Social Security, the concept of 'social security' is based on human dignity and social justice. The underlying idea being that, social security measures would allow a citizen who has contributed or is likely to contribute to his country's welfare should be given protection against certain hazards.
(2.) The provision of provident fund has been recognised as a term of condition of employment of industrial workmen. Legislative measures have also imposed the requirements of provident fund on the employers and employees statutorily. But in respect of industries to which the statutes do not apply, the provident fund schemes are being worked out by collective bargaining on certain principles.
(3.) Gratuity was treated in the early stages of industrial adjudication as a gift of payment gratuitously made by an employer to his employees at his pleasure and the workman had no right to claim it. But in course of time it came to be treated as a term of employment and the industrial adjudication started treating it as a reward paid to the workman for good, efficient, faithful and meritorious services rendered by them to the employer for a fairly substantial and long period intended to help workmen after retirement on superannuation, death, retirement, physical incapacity, disability or otherwise. Likewise, pension is also a measure of security for old age, inability and death of the bread-winner. The provident fund is not an adequate cover for the contingencies of death and inability.;