FRINGE BENEFITS & SERVICES
Employee benefits and services include any benefits that the employee receives in addition to direct remuneration.
A formal definition is '... fringes embrace a broad range benefits and services that employees receive as part of their total compensation package , pay or direct compensation is based on critical job factors and performance.
Benefits and services, however, are indirect compensation because they are usually extended as a condition of employment and are not directly related to performance.''
Employee benefits and services are alternatively known as fringes, service programmes, employee benefits or hidden payroll. The word fringe is not appreciated by management practitioners on the ground that now-a-days benefits and services constitute substantial labour cost for any organisation.
They are no longer mere fringe costs or fringe items. They are important to managements, employees and unions alike