Navigating HR and Legal Steps After an Employee's Tragic Passing: What Should We Do?

Hi, One of our employees passed away in an accident, and we were informed by his family. As we are a start-up, we need to know the HR processes that have to be followed after the demise of a resource. Is there any legal document to be requested from the family of the resource, such as a death certificate or any other document?

Payment and Bond Considerations

Regarding the payment due to the resource, what steps should we take? The resource had signed a bond to serve the organization for 1 year, but only completed 6 months. Is the bond now invalid, or should the due be recovered from his family by serving a legal notice? We would like to understand all the legal options applicable to this case.

PF Withdrawal Request

If his family requests PF withdrawal, should we process the request?

Thank you.

Steps to Follow After the Demise of an Employee

First, contact the HR person in the company. Visit the office with the employee's death certificate, which will be helpful for the further process. Ask the HR person about all the formalities, including requesting the due salary and PF withdrawal.

Regarding the bond, they should not recover it from the family, but read the document carefully about the terms and conditions of the company. Any family member can process the PF withdrawal. Find out the nominee for PF and take a signature on the required documents. Stay in touch with the HR person continuously. It's a must.

Regards,

Was the employee on official duty when he met the fatal accident? Ask for a death certificate and legal heir certificate for settling the dues payable to the deceased employee.

The employment bond becomes null and void once the employee has passed away, and you cannot demand anything beyond the bond conditions from the family of the deceased, except for any advance payment, if applicable.

Regards,
Pon

You must process the PF request with Family Pension. Fill all the relevant forms and forward them along with the Individual SB Account Pass Book of all the Legal Heirs (Wife 1 account, and each child will have a separate account) entitled to Family Pension. Include the Legal Heir Certificate, Death Certificate, Available Birth Certificate of the deceased in office records, his attendance details, payment, and PF deduction details through the HR Department to the PF Office. Surely, they will receive the family pension, and the family will certainly bless you.

Legal Requirements and Benefits After Employee Demise

Death certificate and Legal Heir certificate from the Government Revenue Department are essential. Before making the payments, an indemnity bond cum affidavit signed in the presence of a Notary declaring that the claimants alone are the sole dependents of the deceased is required. In the event of a claim from anybody else in the future, the claimants shall indemnify the company of such a claim.

Apart from PF, benefits like funeral benefits are payable by ESIC if covered under ESI, and a lump sum death benefit of EDLI is payable from PF, in addition to a monthly pension to the spouse and two children.

If the death is due to a road accident, then road accident claims will have to be processed by the family. If it occurs in the course of employment, benefits under ESI or Employee Compensation shall have to be processed.

Any contract shall become void in the event of an unnatural event like death, and the service bond cannot be enforced on the family members.

With regards,
M. Venkatraghavan