Effective from April 1, 2005, the Securities and Exchange Board of India (SEBI) directed Indian stock exchanges to implement a new set of reporting requirements, commonly known as Clause 49, for listed companies. Included in Clause 49 is a non mandatory direction for companies to establish an internal whistleblower policy. Corporate whistleblower policies would establish a mechanism for employees to report to management concerns about unethical behaviour, actual or suspected fraud, or violations of the company’s code of conduct or ethics policy. The whistleblower mechanism also could provide for direct access to the chairperson of the company audit committee in exceptional cases, as well as safeguards for employees who availed themselves of the whistleblower procedures.

The aforementioned Act was notified on September 7, 2005 and the scheme launched on February 2, 2006. The objective of the Act is to enhance the livelihood security of the people in rural areas by generating wage employment through works that develop the infrastructure base of that area. The choice of work suggested addresses the causes of chronic poverty like drought, deforestation, and soil erosion. The objective behind suggesting certain key activities/works is to rejuvenate the natural resources of the area to stimulate the local economy enabling those who work for wage employment in creating an asset to take advantage of it to engage in productive ways of self employment, and augment their income. Section 4 of the Act provides that within six months from the date of commencement of the Act, every state government shall, by notification, make a scheme for providing not less than 100 days of guaranteed employment in a financial year to every household in the rural areas covered under the scheme and whose adult members volunteer to do unskilled manual work subject to the conditions laid down in the Act.

But there is a silver lining as well for the workers in the country which could be seen from the inclusion in the Board of Kanan Devan Hill Plantations Company of Ms. A Chandra, a worker in the largest participatory management tea company in the world. Seventeen years of dedicated service has got her into the Board of the Rs.105 crore company. The lady still earns Rs.82.65 for a day’s work and still lives in the worker’s lane with the rest of the workers.

Employee Stock Option Schemes (ESOPs) are a method of employee compensation. They can be useful if the firm is growing rapidly and seriously wishes to retain a good and efficient work force.