Understanding ESI Compensation: What Happens If an Employee Dies After Leaving Work on Deputation?

Dear friends,

I have an urgent query regarding compensation under ESI in case of the death of an employee who was on deputation for more than 10 months.

To elaborate more on this - The deceased was deputed from Delhi to Nagaur, Rajasthan in July 2008 and was there until 15th May 2009. On the fateful day, he left the office at 5:30 in the evening for a doctor's appointment in a government hospital. However, soon after leaving the hospital after the checkup and prescription, he was brought back and treated accordingly but could not survive. The reason for his death was declared as sunstroke and heart seizure.

After several grievances with the employer, we have been told that ESI compensation would have been valid if this had happened in the office itself and not after he left the office.

It may sound dumb, but we are not really sure of the rules and would appreciate it if you could help us understand the guidelines on the applicable time of coverage on working days in and out of the office and compensation for people on deputation.

Please help us.

Thanks and Regards,
Kapil Saxena

Dear ESI benefit will not be applicable to him because ESI benefit is given if death occurs during employment and in the course of employment. The victim's heirs have to prove that it was due to employment conditions, and it will be proved in a court of law. Heirs have to file a case in the ESI court. There is no effect of deputation provided he is a member of ESI; however, pensionary benefits of the provident fund should be given to his heirs.

Regards, J.S. Malik

Can anyone suggest legal issues on deputation in a different entity in a private firm, i.e., deputation from one private company to another private company, but they are under the same management.

Dear Skariah,

Firstly, two companies have separate legal entities. Forget about management. Suppose the companies are A and B. A's employee is deputed in B. A will be responsible for legal compliances for the deputation. For example, the only problem is employment injury. When you are deputing someone to another company, give them a formal letter with a stipulated time for deputation. In the case of employment injury, company B will take up the initial responsibility to send the victim to the nearest hospital. Upon receiving the information, company A will handle formalities such as the accident report to ESI, FIR, and other incidental tasks.

Regards,

Biswas