Handling Employee Files After a Colleague's Passing: What Steps Should We Take?

An employee who resigns will undergo an exit interview and exit processes, which will be filed in his/her personal file.

Handling Employee Files in Case of Death

In the unfortunate event that the employee passes away during his/her employment, how should the employee's personal file be closed?

The procedure of exit interviews and exit processes should be conducted for an employee working in the organization, and the report may be filed in the personnel file to close the case. However, when an employee passes away, executing this procedure becomes a different matter. The initial question that arises is where and how the employee died. This query is crucial since the benefits for the deceased employee's nominee will be determined based on this information.

If the employee died within the organization premises due to an accident, an accident report should be filed accordingly in the personnel file. If the death occurred outside the organization premises, the related reports should still be documented in the personnel file. In the event of the employee's passing at home, the family must submit an application to the management detailing the death, accompanied by the death certificate.

Based on the circumstances, the legal benefits owed to the deceased employee should be arranged first and duly disbursed to the nominee. Once the relevant reports are filed and the settlement papers are received by the deceased employee's nominee, they should be placed in the personnel file, leading to its closure.

I hope this information is helpful.

Kind regards,
[Your Name]

It is well defined by Bhuwan that we need to understand when and where the employee died. Has he died during office hours, and has he died at the office premises or on duty (he may be out of the office for travel)? Once this is cleared, then we should take action accordingly.

I strongly believe that the nominee of the deceased will be entitled to all the benefits like gratuity, PF, insurance claims, compensation from the company, etc.

Regards,
Dinesh Kumar Khosla
Program Manager
Program Management Practices (PMO)
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I do not think there is any hard and fast rule, custom, or practice followed in the industrial sector for closing the file of a deceased employee, whether the death is natural or due to an accident arising out of employment. You need to ask yourself one question - whether all dues and issues were settled in respect of the deceased employee. If the reply is "YES," then you can close the file with an appropriate remark on the front cover of the file as "Employee died - Terminal benefits settled by ...(date)..." You can similarly make a remark in the register of (live) files, if any maintained by you against his name, or even cancel/remove his name from it and make an entry in the list of closed files, if any maintained by you. If you have to send a closed file to a record room, record those details like the date of sending the file to the record room and date of acknowledgment by the In-Charge of the record room. Even the closed file shall be held in safe custody so as to answer any disputes that may arise subsequently. This will enable you to avoid cluttering of live files with closed files.

If the reply to the question is "No - matters pending," then the file shall remain open until all the issues relating to the deceased employee stand settled. Till then, all the papers relating to the deceased employee shall be filed in the personal file. To be on the safe side, you can file an extra copy of all correspondence relating to his death and settlement of dues in a master file if you so desire for any immediate reference, if his legal heirs seek any clarification.

This is only a suggested procedure. You can follow what suits your company's policy.

Regards,
B. Saikumar

If it is a natural death outside of office hours, not arising in the course or out of employment, then obtain an original death certificate from the legal heirs, and a legal heir certificate furnished by the government authorities from the legal heirs. Settle the PF, EDLI, and Gratuity claims based on the nomination forms submitted under the EPF Act and Gratuity.

If the nominees are not mentioned in the PF/Gratuity, settle the claim to the legal heirs. This is because, in many instances, employees nominate their parents when they are single and do not submit a fresh nomination after they get married.

Also, obtain an indemnity bond from the legal heirs stating that the settlements are being made based on the legal heir certificate, and in the event of any claim from any other person, the person who has received the settlement will indemnify the company.

If it is a natural death while the employee was working, ascertain whether the death arose in the course and out of employment. If it was due to employment, and the employee is covered under ESI, intimate the ESI authorities. If he is out of the purview of ESI, then check his compensation under the Workmen Compensation Act and settle the dues to the legal heirs.

In the event you have any ambiguity on the legal heir status, then deposit it with the WC commissioner.

Settle the full and final settlement, including any bonus payable, to the legal heirs.

If the employee was covered under a Personal Accident Policy, then settle the claim to the legal heirs. Please note that Personal Accident cover is 24 hours worldwide and is irrespective of whether the death arose in the course or out of employment.

If your company has extended any life cover as a fringe benefit, settle this amount as well to the legal heirs.

While settling all the claims, obtain the signatures of two witnesses with addresses. It is also recommended that all settlements are made in the presence of a notary as a precaution.

After completing all this, ensure that you file the records in the employee's personal file and preserve this file until he would have attained superannuation if he were alive.

If you had a Gratuity policy with LIC, the gratuity claim will be settled as if he had superannuated from the company if he were alive. In other words, the claim will be from his date of joining till his date of superannuation (if he were alive).

Regards,
M.V. Kannan

A lot of details have been provided by learned members. If the deceased has a table or locker, then it should be opened in the presence of witnesses, and items should be recorded in a list (Panchanama? - I am not sure). All official papers, office gadgets, etc., will be the company's property, and anything of a personal nature should be given to the nearest kith and kin. A receipt should be taken for the same. I hurriedly saw through the above postings, and I am not sure if this point is already covered.

Regards,
V. Raghunathan