I am a firm believer that a company's policy should be Management By Objectives and not Management By Exception if I want to keep the wheels of the train moving. While saying so, I do have empathy and sympathy for those with whom we are engaged. The relationship is akin to the "Lotus leaf and droplets of water on it. Visibly together, but in reality individual - not connected. Connected - disconnected - Connected."
On the other side, being one with high self-esteem, I would not want favors from anyone while working.
I believe the company engages me for a certain skill, to play a specific role, and we get remunerated for that. From both sides, we should honor the spirit of the engagement in thought, word, and deed, that's it. Whether your job may demand more or you stretch yourself to go that extra mile is up to you. Do it if you want to without expecting any gains or returns; enjoy the journey. Being this way, I think you will earn the respect of your employers, colleagues, and everyone around you.
In conclusion, I should say that if I were in the place of the Principal (person) you've referred to, I would reject being paid for the days I didn't work. If they sympathize with me during a moment of personal loss due to a demise, it would be nice. Otherwise, it doesn't matter.
Regards