Tragic Workplace Incident: What Are the Management's Responsibilities for Compensation?

One of our night duty employees was murdered at the workplace during duty hours. Now, my query is, what is the management's role in paying compensation to his family members?

Compensation for Employee Death at the Workplace

Death of an employee at the workplace due to any unnatural cause is to be treated as a consequence of an accident arising out of and in the course of employment under the provisions of the Employees' Compensation Act, 1923. Therefore, the management is liable to pay compensation to the deceased employee's legal heirs as per the provisions of the Employees' Compensation Act, 1923.

Consequently, the management should calculate the compensation amount and deposit the same with the Commissioner of Employees' Compensation for the area.

• When the watchman was found lying dead, it will be considered an accident for the payment of compensation. Indian Iron and Steel Company Ltd. v. Bhim Mnya Chettri, 2009 LLR 46 (Cal He).

Compensation Responsibility Under ESIC

If the company or firm is registered under the Employees' State Insurance Corporation, and the employee is in a particular role, the corporation will pay the compensation. If the company is not registered, then the organization is liable to pay with full settlement, regardless of whether the employee is in a managerial role or not.

Regards,
B. Sekar

Compensation for Accidents on Company Premises

If there is an accident on company premises, the first thing to do is to check whether the individual is covered under ESI for payment of compensation. If the person is covered under the ESI Act, then compensation will be paid through ESI. If the individual is not covered under ESI, then the employer is liable for payment as per the procedure outlined in Table IV under the Compensation Act of 1923.

Compensation for Employee Death: Natural vs. Unnatural Causes

If the death is natural, like a heart attack, you have to check whether the employee is covered under ESI or not. If not, it means the employee should be covered at least by a WOC policy. Through these policies, you can literally compensate for the loss.

If it is proven that the death occurred in an unnatural way, then you should pay compensation along with the claim made by the employee's family. (If there are any mistakes in this, dear seniors, please correct me.)

In my workplace, my staff is not covered under ESIC and EPF as we are only 5 staff. If we cover the employee under life insurance, then if an accident happens or death occurs at the workplace, will the insurance company pay his family death compensation, or will I, as an employer, have to pay compensation to his family? Please, someone guide me. Thank you.