Understanding Worker Benefits: What Happens if a Worker Dies After Just One Day on the Job?

If any worker died after one day of work, what benefits would his dependents receive under labor law and why? Please explain briefly. Also, inform me if the death occurred due to a fatal accident or natural causes.

As far as my knowledge goes, the dependents of the deceased employee shall be eligible for:

1. If the deceased employee is covered under the ESI Act, they are entitled to Funeral and Pension Benefits.
2. If the deceased employee is covered under the EPF Act, they are entitled to EDLI and Pension Benefits.
3. If the deceased employee is not covered under the ESI Act, they are entitled to compensation as per the Employee Compensation Act.
4. If the death is due to an accident and the deceased employee is covered under any accident insurance policy by the employer, benefits will be provided as per the policy terms.

Compensation for Fatal Accidents and ESI Coverage

If it is a fatal accident and your organization is covered under ESI, and if his salary is Rs 15,000 per month or less, his family will receive funeral benefits and a pension under ESI.

If it is a fatal accident and either your organization is not covered under ESI or if the employee's wages are more than Rs 15,000 per month, his family will receive compensation under the Employees Compensation Act, and the company has to pay.

If the death is not due to employment or in the course of employment, his family will not be eligible for any compensation except the funeral benefit under ESI.

EDLI Benefits

If the employee had been a member in the earlier organization and had been a PF member for a year, then his family can claim EDLI benefits. However, most organizations go with insurance companies, and his name might not have been included in the policy. The family needs to approach the PF Office to get the benefit.

Pension Eligibility

Again, if he has put in pensionable service in PF, his family will get a pension; otherwise, no pension is payable.

EDLI and pension under PF are payable both in accident cases and in natural death.

Confirming, if the employee was covered under group accident cover, then the dependents are eligible for benefits in the event of death due to an accident. Usually, it is 100 times the basic salary of the employee.

Illustrating a similar case, a temporary employee fell from the train while returning from the office. His family received the insurance money, which the company claimed and passed on to them. Since the employee was on a cash voucher, his drawn salary was as low as 4,200/- per month. His family received 425,000/- from the insurance company.

It is beneficial that we have group coverage for almost all temporary workers and laborers working at warehouses.

Best Regards,
BSJ

Understanding Group Accident Cover and Legal Obligations

There is nothing legally termed as "Group Accident Cover." Employers may take this policy, but technically, there is no obligation for management to pass this benefit to the deceased employee's family. Technically and legally, the deceased employee's family will receive ESI compensation or Employees' compensation under relevant law. However, if there is a settlement or if the appointment letter mentions Group Insurance, then the benefit needs to be passed on. Group accident cover does not necessarily provide a 100% benefit; it depends on the terms and conditions, and usually, there is a ceiling fixed based on the premium.

Group Personal Accident Policy and Workmen Compensation Policy

The Group Personal Accident Policy/Workmen Compensation Policy is being taken to compensate the victim as per the Employee Compensation Act.

Regards

It is not possible to cover the employee in any statutory compliance on the very first day of the employee joining a company. So here the question arises: whether the employee has died within the company premises naturally or accidentally. If accidentally, then it is deemed that the accident has occurred due to negligence, and the company has to compensate accordingly. If it was a natural death, there is no legality from the employer's part and can compensate if desired. The employee has to depend upon his LIC or any other insurance he has covered himself and for his family.

It is not the question of whether it is possible to cover or not. The moment an employee reports for work on the joining day, he or she is covered under certain legal obligations. For example, he becomes an insured employee under ESI whether you have got the forms filled or not. In fact, I faced a similar situation in 1987 when an employee died inside the factory due to an accident within one of his reportings. His family has been sanctioned a pension under ESI even though there had not been any contribution. We reported the accident, explained the circumstances, and were asked to pay ESI contribution for that day. We just had to prove he was engaged on that day, and he indeed is a bona fide employee and covered under ESI. I know his family will not get a pension under PF or even EDLI. EDLI is also possible in the case of a policy with LIC where monthly statements are sent for addition or deletion. If I remember correctly, some of the Insurance Companies provide EDLI benefits from day 1.

Regards,
Sivasankaran

To get the EDLI benefit, an insurance policy is not mandatory. I worked at BRAHMOS TVPM. One employee died when he was not on duty. The EPFO paid the benefit of EDLI. We had never taken an insurance policy for EDLI.

Regards,
[Phone Number Removed For Privacy Reasons]

I never said EDLI is meant for death while on duty. The case here is the employee joins and meets with an accident on the same day. EDLI requires minimum service. Some insurance companies, while providing the EDLI scheme, cover employees from day one, whereas PF does not say so.

Legal Coverage for Employees from Day One

It is not a question of whether it is possible to cover or not. The moment an employee reports for work on the joining day, he or she is covered under certain legal obligations. For example, he becomes an insured employee under ESI whether you have got the forms filled or not. In fact, I faced a similar situation in 1987 when an employee died inside the factory due to an accident within one day of his reporting. His family was sanctioned a pension under ESI even though there had not been any contribution. We reported the accident, explained the circumstances, and we were asked to pay ESI contribution for that day. We just had to prove he was engaged on that day and he indeed was a bona fide employee and covered under ESI. I know his family will not get a pension under PF or even EDLI. EDLI is also possible in the case of a policy with LIC where monthly statements are sent for addition or deletion. If I remember correctly, some of the insurance companies provide EDLI benefits from day one.

In your case, the employee died inside the factory due to an accident, which is why ESI came into the picture. However, the poster here has not mentioned whether the employee died due to an accident or if it was a natural death. Whether the employee was a workman or in a managerial post to ascertain his coverage in ESI, etc.

When the poster himself does not clarify the exact details, the reply will be on an assumption basis only.

Regards,
Sivasankaran