Hi Dswati,
Mr. A Jadhav and Mr. BS Kalsi have given a very descriptive details, but I have gone confused. As far as my knowledge goes,
A Welfare Officer is a statutory personnel appointed by the employer to take care of implementation of labour/industrial laws within the administrative control of employer/head of the unit, look after the welfare of working class, act as a bridge between the employer, employees and their representing trade unions, ensure timely payment of salary wages and comply with statutory payments and deductions(i.e. salary wage administration). If there are several units physically separated from one another, the employer may or may not employ additional Welfare Officers to take care of above aspects. He reports to the Manager or Owner of the establishment/factory/organization. He cannot - cannot - impose penalty on anyone (as mentioned by one of the follower earlier). He is not a gazetted officer as per Act/Law.
Whereas, A Factory Inspector (whatever might be the designation assigned at present) is a statutory official appointed by appropriate government. He is a state / central employee reporting to concerned appropriate labour ministry and its designate officials. He has the powers to inspect records, returns and impose fine/penalty on the erring official/industry. He is a gazetted officer.
If I am wrong, please feel free to correct me. I shall be more than happy to correct myself with thanks.
AK Jain
HR Personnel