Employee welfare includes the assessment and monitoring of the working condition of the employees which can affect the physical and mental health of the employees. If the success of any business is measured by the productivity and profitability of the business then the businesses cannot succeed if they do not ensure that their employees have things like good working environment, healthcare, adequate food, and paid holidays. It has been indicated that these are employee welfare benefits that helped to enhance the engagement of the employees in the different organizations and improve on motivation and performance of the employees. This study attempts to explain the role of some of these employee welfare practices (medical insurance and compensation) in improving work performance (productivity and goal attainment). This buttresses the fact that employees need certain benefits and psychological needs such as autonomy, purpose-driven satisfaction to increase their level of productivity. Employee welfare is an essential element in creating a sense of recognition and satisfaction which will enevidently boost productivity and reduce frequent employee turnover. Hence, the study concludes that employee welfare practices have a positive relationship with work performance and thus recommends that Oil and Gas companies should give more attention to employee welfare to facilitate work performance.