Harsh Kumar Mehta
Consultant In Labour Laws/hr
Apex Management
Labour Laws Consultants
Adoni Suguresh
Sr.executive (per & Adm)
Senior Officer - Hr
Hr Manager
Manpower Planning And Costing, Recruitment
Sr. Vice President-hr
Asso.prof.(commerce & Management) Pg
Ashutosh Thakre
Hr Professional
Statutory Compliance
Hr Generalist
Manager - Hr
Hr - Coodrinator - Huntsman Performance Products
+2 Others

Dear Seniors,
One of our factory worker committed suicide at his home due to family problems.. He died in hospital with severe burnt injuries. His relatives with some political people came to factory and demanded 50,000/- for funeral expenses. But we paid Rs. 10,000/-. Now they are demanding to do fixed deposit 2 lakhs per head for his 2 kids and job for his wife. we are deducting EPF and ESIC since July 2012 for him. I personally wanted to help his family. what are the best things can be done?
Is there any legal / statutory way to handle this?
Waiting for your reply.
How company is responsible for the suicide committed at his home? His terminal benefits will be given to his legal heirs. Pon
Company is responsible for the treatment of a person if things are happen within a company and in his/her job timings otherwise company is not responsible for bear any thing. Rashmi
The only relation between the company and the person committed suicide is employer-employee relationship.
Since the suicide is committed at his home, company is not responsible to pay for any compensation except
his terminal benefits, PF dues, gratuity amount if any. and also any additional payment the company wishes to
pay (purely on compassionate grounds) .
Company should also inform the local authorities of Law & Order, as he was working as a factory worker, about
his suicide.
R K Nair
Dear Stephen,

HR is not always about how to implement the rules, its also how you see the Human in Human Resource.

What the most you can do is, if the workers really want to help the worker, is take contribution from the workers, add the co. contribution to the same and then make that a deposit in the bank, whereby the interest earned can be utilized by the family. Also the PF and the Gratuity amount that will be received, do not hand over to the family, but make a fixed deposit on the childrens name and then hand over the pass book to the family. This is completely out of the book suggestion that i am providing. This is only a humanitarian grounds that you would be doing this gesture and make sure that every one knows about it.

Rest as giving his wife a job, make it clear that only if she is qualified for any job and there is a vacancy will she be absorbed. Make no promises in that regards. Also if you do have any contract labor agency, then if she does not fill your criteria then she can be shifted to those role again on humanitarian grounds only.

Hope this is of some help to you.
Dear Stephen,
As Ashutosh's suggestion is just on the ground of Humanitarian. You can not take this as a RIGHT towards employment. If you want to help the employee then you can disburse his Gratuity immediately since that is in your hand only. You can Make FD of this amount. Simultaneously you can proceed for EPF & ESIC as there are scope for widow having kids.( CHECK whether it is applicable for Suicide Case or not)
Santosh Khamitkar
As per provisions of ESI Act, 1948 reimbursement of Funeral Expenses upto a maximum of Rs. 10000/- (Rs. ten thousand only) is payable-Rule 59 of ESI (Central) Rules, 1952. No other benefits are payable to the dependants of the deceased insured person.
Hai members,
i wish to add one more suggestion in this regard. Eps 95 scheme is applicable to the deceased employee's family. It can be processed to the benefit of the family members. In addition to the esic benefit.
Nothing to worry.
First of all no one should panic. NOK (next of kin) will be entitled to benefits accrued by way of company policies, statutory provisions, and ex gratia if company may consider. Due to recency effect relatives are emotionally charged which will go down only with time. Company should keep a lawyer besides them so that their responses do not indicate any abetment to suicide which is criminal offence. Company should otherwise cooperate with police.
The company is responsible if the accident or incident occure in or on the way of factory. In this case both the cases is not applicable. Although, the company is deducting ESIC, the treatment part of his (i.e. IP. Insured person) can bother by ESIC. ESIC can also provide the funaral assist for the IP.
As per legal, question does not arise to give compulsary compensation to the person. If the management and other workers ready to give some part volantarly.
with best regards.
aniruddha kale
Dear all,
Since the worker committed suicide at his residence, the company is not responsible for any addition benefits except to clear his legal dues i.e. earned wages / salary, Leave encasement, Gratuity, interim bonus (as bonus becomes payable within 8 months from the closing of financial year) etc.
The management and co workers if they wish voluntarily on humanitarian grounds, can help financially but it is not a legal right.
The management should extend help in early settlement of ESIC funeral benefit which Rs.10000/- and admissible pension from EPF for his dependent wife and two elder children and settlement of EDLI and EPF contribution.
P K Sharma
Dear All

I too agree with the suggestions given by Mr. P.K.Sharma in this thread. The employers liability does not arise at all if the death is occur ed at his residence out of working place either may be it a natural or suicide. If you have paid him Rs.10,000/- to meet his funeral expenses as good will and does not attract any provisions of law unless it is any agreement with the workers union. You do not entertain any demand from the deceased family members. At the most you can settle his full and final settlement of account against the services rendered in the organization including, Salary, other allowances, leave salary, Overtime wages, if any.

You can prepare an office order stating the Mr XXXXXX has expired on xxxxxx and his name from the rolls of the Company has been struck off with regret with effect fromxxxxx and display the same on notice board of the establishment and pay his dues whatever is applicable. It is deceased wife responsibility to claim Provident Fund and Pension from EPFO at her interest.

Adoni Suguresh

Sr.Executive (Pers, Admin & Ind.Rels) Rtd

Labour Laws Consultant
Not a painful deal from Employer side.
First Employer can give his pending salary,bonus,leave and gratutity benefit to His nominee. generally employer believes that the nominee declear in ESIC and Pf, should be same person.
So take a letter from his nominee that that person as died on the respective date so kindly give all the pending amount to Me. then pay him/her, (most recommded by cheque).
Then help them for claiming ESIC funereal Charges near about 10000.00
Then help them for PF dept pention etc formality.
No finical burden and practice should come on employer side.
If they are coming with political people, tell them we will full support for all formalities in ESIC and PF.
do not commit any big commitment. otherwise it will become bad practice in your factory/unit.
Thats my View.

Dear Stephen,

Pl.go thru' the attached notes on 'Law & Procedure' relating to 'Funeral Exp.'under ESIC rules for your ready information and guidance.

For the rest of the things, I don't think you could do everything being suggested, as much would depend on the conditions of the deceased's family, their economic back ground, their immediate requirements, future plans etc. Your role would be limited to arranging the Full & Final settlement of his dues. It is going to be the decision of the widow and other dependents' of the deceased as to how the kitty has to be planned for the future. They must be ever grateful if you could arrange a posting for his wife or children, if they would suit your criterion on compassionate grounds. I feel you should take guidance from the precedences on such occasions and your HR Policy. All possible Care should be taken to avert unscrupulous fellows in the guise of helping the family squander the money & other benefits you are arranging. This is necessary all and sundry from the unions make use of such occasions for their evil designs.

Attached Files
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File Type: pdf esi Funeral Expenses.pdf (65.8 KB, 71 views)
File Type: pdf ESI.funeral exp..pdf (379.8 KB, 40 views)

Dear Stephen,
Greetings for the day,
Deeply regert for the mishap and my sympathy with the family members. Since we aware of the fact that committing suicide is an offence. But on sympathatic background you simply do that, as employee is covered under ESIC you simply manage funeral allowance from ESIC as earlier sugeested by various contributory members including Mr. Sharma OF APEX management simply forwarding the medical reports to ESIC branch office & as far as compensation is concern EPF will provide social security benefit to the family members through EPS & medical facility form ESIC as far as compensation is concern no need to worry , you are not liable to pay a single penny.
Thanks & Regards,
Sumit Kumar Saxena
Death benefits which deceased employee family gets as below.
1.Funeral Benefit under ESIC - Rs.10,000.
2.EDLI amount under EPF Act - 20 times of Basic+DA.
3.Widow pension and Children Pension under EPF Act.
if somebody comits suicide that too at home you dont need to pay anything except hid dues. the amount of 10000 you paid could be recovered from his full & final settlementy.But if/as you have paid on a compqassionate prt sympathetic ground it is different issues.legally he is not entitled for any compensation for commiting suicide that too at his residence. You can flatly refuse .let them go to the courts you will not be in problem.Even he will not be paid against his life insurance poluicy for which he has contributed premmiums.
if you want to help his family / dependent/nominee plk see that his pf, gratuity and full & final accounts properly settled.see that his dependendants (widow)get the pension from pf.she wont get any pension from ESI.

It is good to see that every one is giving their well experience suggestion is countable in every aspects, But when you are dealing the death case weather he was died while working or at home, the first sympathy goes to decease family future well being and their benefits and labour/worker and local leaders, union forced to management to contribute something to help decease family livelihood.

First you may talk to District Authority for appointment of Arbitrator on this case and put all relevant document in front of him (Statutory Document ) and feel free to wait for decision of Arbitrator and convey the same.

Because, it is a matter of work family and where workers/Labour may feel that what decision come is true and correct for smooth function of production and work environment.

Why i suggested for one arbitrator that Both Employer & labour contribution equal for prosperity of the organisation and if labour consider that the management only utilizing them the organisation will not prosper and may suffer loss.

May go with arbitrator decision it will help you for harmony at your work place.
one of our employee commited suicide, unmarried guy with dependant father and mother is their any possibility of ESIC pension. kindly guide me
Dear Sir
One of our staff was committed suicide(Take pills) during working hours but dont know what she took exactly,till now unable to know the reason,at present she is under treatment for the last three days,but we got letter from her parents like for her suicide company or any other staffs are not responsible,whether it is correct or any other options.
Your question is not clear. Are you trying to communicate that her parents are trying to blame Company /any staff ? I presume so. As she is alive please wait for her recovery. Once she become normal find out the actual reason with the help of her family members. Handle the Parents softly as it is natural they got aggravated due their Daughter's suicide attempt. Meanwhile enquire with her co workers about any inputs shared by her /or any letter kept at work place regarding her suicide attempt.
However alternatively if you have received letter from her Parents that company and staff are not responsible for her suicide then preserve in her personal file wait for her recovery.
Dear Mr.Stephen,
Our learned members are already given their opinions. The Factory or company does not responsible to pay any compensation to any body for such incidents that too occurred out side of the work premises and out of working hours. The workmen compensation act, 1923 will applicable only any accidents resulted in minor/major injuries, temporary or permanent disablement, or even death occurred at the work spot and during working hours.
Whatever you have paid is that is on humanity ground and not as per the laws. You need not to pay any more amount or compensation to the heiress of deceased. You can settle his fial settlement including, PF, Gratuity, Bonus , ESI whatever it may be to the legal heiress on submission of death certifricate and succession certificated issued by the competent authority.
Rtd.Sr.Executive (Personnel & Ind.Rels)
Labour Laws Consultant
Our learned members can throw some lights on the older posts being revived after several years.
My suggestion to the moderator is to close older posts with time line as the following discrepancies arises when some one continue the thread:
1. Every one is looking for newer post to update their knowledge
2. As our laws are being updated frequently, any posts before five years would have been not relevant now
3. Our members who are having queries can open a fresh post so that everyone can respond.
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