Navigating Full and Final Settlement After an Employee's Death: What Benefits Apply?

Advice Needed on Full and Final Settlement After Employee's Death

I am mentioning a case that happened in our corporate office and need your advice on the same. One of our staff members, who was suffering from cancer, passed away on Sunday, 9/9/12, at noon. He was on an extension of service when he passed away, and now his full and final settlement needs to be done. Since he had been working for a long time with the company, the company had paid a significant amount for his treatment and provided other types of support to him.

In his full and final settlement, what should be the date of his release? Will he be entitled to some sort of death benefit? Since I have never dealt with any death case, kindly guide me on the same.

Please revert on the matter with your valuable advice.

Regards,
Piyali

Since the employee is no longer with the company, you need to consider the date of death as the last working day. If your sick leave policy allows, you can grant special sick leave until the death of the employee.

You need to pay wages until the last day. Annual benefits like LTA and leave encashment can be paid. Gratuity, if any, should be paid along with the full and final settlement. If your company has term insurance, then you can pay the term insurance benefits. If you have a mediclaim policy, claim the benefits under mediclaim and pay them to the employee's family.

Help family members file PF withdrawal and pension forms. You need to take an affidavit from the employee's spouse to declare her and the children as legal nominees. In case the parents also wish to claim all benefits, they can do so as heirs of the assured in accordance with the law of succession governing them.

Regards,
BrainLight HR Solutions

Eligibility in Case of Death

In case of death, the following are eligible:

1) EPF: You should fulfill Form 20 and 10D with the following documents required for submission to the authorities:
- Death certificate
- Legal heir certificate
- Bank account in the name of the legal heir
- Bank account for children below the age of 25 years
- 2 passport size photos of the legal heir & children
- Children's age proof certificates
- Descriptive forms of the legal heir and children if the children are eligible for the pension

EDLI: Form 14F/5, death certificate, legal heir certificate, and bank account of the legal heir. The maximum limit of the EDLI is Rs. 130,000.

Gratuity: As per the act, the deceased employee is eligible for gratuity up to the superannuation age based on the last pay withdrawals.

Compensation: As per your company rules, compensation eligible by the legal heir based on the death, whether on duty or in service.

Funeral Expenses: Rs. 10,000/- has to be paid to the family members.

If any further information is required, please let me know.

Funeral expenses are not mandatory, I think; however, they can be paid as per the company's policy. In the ESI Act, there is a provision for reimbursement from the ESI department if the employee is covered under the Act.

Regards,
Pkjain

Dear Sir/Madam,

Please send a format of the full and final settlement. One of our staff members has passed away, and we need to make the final payment to her family. However, we now require a full and final settlement letter from the PF office. Kindly assist us with the format.

Thank you.