Featherbedding

Meaning & Definition

Featherbedding is hiring extra employees beyond what is needed, or requiring employees to do work that is not required, with the purpose of creating or keeping jobs. Generally, featherbedding will produce inefficient working conditions. Featherbedding may be caused, in part, by union contracts, outdated processes, or some organizational rules.

Importance of Featherbedding 

• Emphasises inefficiencies in how the workforce is being used.
• Impacts the level of employee production and costs associated with the operation.
• Affects the performance and competitiveness of the organization overall.
• Raises issues regarding workforce planning and optimisation.
• Promotes reviewing jobs, processes, and staffing levels.
• Identifies opportunities for restructuring through HR.

Legal Compliance & Requirements

Featherbedding could have implications within the frameworks of labour and industrial relations, including:

• India does not have a legal statutory prohibition for featherbedding as such.
• Featherbedding can be impacted through collective bargaining agreements and union practices.
• It may fall within the definition of an industrial dispute if related to a restructuring of the workforce.

Employers must follow the Industrial Disputes Act, 1947, when making changes to employee roles or laying off employees.