Comprehensive Insights on Compensation and Benefits in Case of Employee Death

Hi,

One of our colleagues, aged 28 years and earning one lakh per month, died in a road accident away from his workplace while traveling (off duty) in his native place. My queries are:

1. What are the liabilities on the company employing around 8000 people in such a case?
2. Is the compensation act applicable?
3. If yes, what is the amount payable to the deceased employee's family?

Regards,
PRASHANT

Dear Prashant,

Your query-wise reply is given hereunder:

1. What are the liabilities on the company employing around 8000 people in such a case?
The company's liability is to make the full and final payment to the nominee(s) / legal heir(s) resulting from the death of the employee.

2. Is the compensation act applicable?
No compensation is payable as per the Workmen's Compensation Act, 1923, as this accident did not happen in the due course of and out of employment.

3. If yes, what is the amount payable to the deceased employee's family?
As above.

Opinion submitted as requested.

With Regards,
R.N.Khola

[Quote: prh;1101287]
Hi,
One of our colleagues, aged 28 years and earning one lakh per month, died in a road accident away from his workplace while travelling (off duty) in his native place. My queries are:
1. What are the liabilities on the company employing around 8000 people in such a case?
2. Is the compensation act applicable?
3. If yes, what is the amount payable to the deceased employee's family?

Regards,
Prashant

Dear Mr. Khola,

Thank you for responding to my post. Kindly elaborate on the following:

1. What is meant by full and final settlement and the items covered therein?
2. Is the employer responsible for providing insurance coverage, and to what extent?
3. In this case, the accident causing death happened during the course of employment but not out of employment (on duty). What is the employer's responsibility?

Thanks,
PRASHANT

Dear,

If the death of the workman (workman as per section 2(1)(n) & schedule II) occurred in the due course of and out of employment and the employer is liable to pay compensation under the Workmen's Compensation Act, 1923, then in that case, the dependents of the deceased workman will be entitled to receive a sum of Rs. 4,23,850 from the employer as per section 4 of this Act considering the age factor as 211.79 as per schedule IV and fifty percent of wages as Rs. 2000 per month (the maximum wage limit is Rs. 4,000 per month for the calculation of compensation).

With Regards,
R.N.Khola

What compensation or benefits are given to the dependents after the death if the person met with a road accident and died within a 5 km radius from the workplace while coming for duty, under the ESI Act, Labour Welfare Act, and P.F. Act.

From Vinod Yadav
Gurgaon

The compensation under the Workmen's Compensation Act has been revised, and the minimum compensation is now Rs 120,000 instead of Rs 80,000. Also, the salary has been capped at Rs 8,000. Therefore, the factor applicable to the age of 28 shall be multiplied by 50% of the salary (Rs 4,000) to determine the compensation amount.

If covered by ESI, the employer shall not have any liability; instead, the ESI Corporation will take care of it. According to the latest amendment, an accident that occurs while commuting to the office or place of work shall be considered an employment injury, entitling the dependent to benefits from the ESIC.

Additionally, an amount subject to a maximum of Rs 1,05,000 is available through EDLI (Employees' Deposit Linked Insurance) from the Employees' Provident Fund Organisation. The amount depends on the PF accumulations and is separate from the PF dues.

Moreover, in the case of a death, the dependent is entitled to receive Gratuity from the company at the rate of 15 days of average salary for each year of service.

Regards,

Madhu.T.K

Dear Vinod,
In addition to the above I would also like to add here the following regarding Labour welfare Schemes run by the Haryana Labour welfare Board.


You must be knowing that Haryana Labour Welfare Board is running a number of schemes out of which scheme named “ex-gratia to the widows/dependants of industrial workers’ may be available if the concerned worker was working in the establishment of Haryana State upto Supervisor category & was covered under the definition of section 2(s) of Industrial Dispute Act, 1947 and who have paid full due amount of contribution under section 9A of the Punjab Labour Welfare Fund Act, 1965 and are drawing monthly wages upto Rs. 15000/- per month:-

Brief note on this scheme may be read as under:

This scheme was introduced in the year 1976. The main aim of the scheme is to give financial help to the widows/dependants of deceased workers. A lump sum amount of Rs.50, 000/-(Rs. Fifty thousand only) is given to each widow/dependant of deceased worker.
Eligibility criteria:
1. The application is to be submitted within two years from the date of death of worker in field offices or Head Office.
2. Service of the worker should be at least six month at the time of death.
3. If the application is submitted by other than widow of the deceased worker, then an affidavit to the effect that he/she is wholly dependent upon the deceased will have to be furnished along with application.
4. Attested advance receipt of widow of deceased worker/ dependent of Rs. 50,000/- should also be annexed with application.
5. The management will also furnish a certificate towards death of worker.
6. The applicant will submit an affidavit to the effect that he/she is fully dependent upon the deceased worker and he/she has not earlier availed of the said scheme.
In the event of death financial assistance to the dependent of the workers for cremation:
This scheme has been started w.e.f. 12-2-2009. Under this scheme
Haryana Welfare Board is providing assistance of Rs. 5000/- to the Widow/dependent of deceased workers in the event of his/her death.

Eligibility Criteria:-
1. The service of worker should be at least one year in the concerned
establishment.
2. The attested advance receipt should be submitted along with the
application form.
3. Employer will submit the death certificate of the deceased.
4. Applicant should submit an affidavit mentioning therein that he/she is
fully & legally dependent of the deceased.
For any further clarification in matter you can contact your area Labour Inspector (Welfare), 4th Floor, Mini Secretariat, Gurgaon.

Regards,
R.N.Khola

One employee in an organization has been working for the last 4.8 years. Suddenly, the management terminated him.

Please tell me what are the liabilities on the company.

One of my client's employees (a driver) passed away while off duty. He had taken leave due to illness and suffered a heart attack during the night. The investigation indicates that he was intoxicated as he was on leave that day, and he passed away in his sleep.

He is survived by one minor child and a wife, although they were not residing with the employee at the time. They had agreed to live separately but had not divorced. He was living with his mother and brother in a joint family. Currently, his family does not wish to provide any compensation to his wife but is willing to support his child.

Compensation Options

My question is, what other compensation can be offered besides the Full and Final settlement?

Exclusion of Wife from Compensation

How should we proceed in a situation where the wife is excluded from compensation, even though she might expect a share of it?

Please advise.

Looking forward...

Regards