Workplace Tragedy: Is an Employer Liable for Compensation if an Employee Dies Naturally on Duty?

If an employee dies a natural death at the workplace or on duty, is the employer liable for compensation? If yes, how is it calculated?

Employer Liability in Case of Employee Death

If it is a natural death not at all due to work pressure, the employer is not bound to pay any compensation as per the Workmen's Compensation Act. On the other hand, if the death has occurred due to work pressure which resulted in the failure of systems, such as a heart attack, the employer will have to compensate on a scale of compensation calculated based on the age of the deceased and salary at the time of death. The salary, of course, will be limited to Rs 8000, and in death cases, it will be 50% of the salary multiplied by the fixed age factor.

Regards,
Madhu.T.K

How can it be proven that a heart attack is due to work pressure?

Regards,
Mangesh Wakodkar
Aurangabad

That is to be done by the dependents of the deceased. If it is possible to establish that the deceased employee had requested a few days of rest but the manager denied it, or if the deceased was given a task that he was not able to do, leading to the development of mental stress, that is sufficient cause to believe that he died of work stress. The Workmen's Compensation Commissioner can also gather evidence from the workers who worked with the deceased.

Regards,
Madhu.T.K

Compensation for Workplace Death

If it has been proven that the death was natural, then no compensation needs to be paid. If the man's death was related to the nature of his work performed at the workplace, then compensation needs to be paid.

Factors Affecting Compensation

Compensation will depend on two factors:
1. Salary, subject to a maximum of Rs. 8000/-.
2. Relevant factor as stated in Schedule IV of the Employees' Compensation Act, which is an age-dependent factor.

Compensation is calculated as follows: Compensation = 50% X value in Sl. 1 above X value in Sl. 2 above.

For the calculation of compensation, please find the calculator in Excel format attached. This will help calculate compensation for death, permanent total disablement, and permanent partial disablement.

Understanding the Relevant Factor in Employee Compensation

A "relevant factor," in relation to an employee, refers to the factor specified in the second column of Schedule IV. This is against the entry in the first column of that Schedule, specifying the number of years which correspond to the completed years of the age of the workman on his last birthday immediately preceding the date on which the compensation fell due.

For example:
- Not more than 16: 228.54
- 17: 227.49
- 18: 226.38
- 19: 225.22
- 20: 224.00
- ...
- 64: 102.93
- 65 or more: 99.37

As one can see, the lower the age, the higher the Relevant Factor and vice versa.