Navigating Legal Duties and Support for a Family After an Employee's Tragic Death

Hi, One employee died (suicide) when she is on leave. She had just completed only 5 months of service. In this case, what are all the legal obligations for the employer? How can we help her family by LWF (Labor Welfare Fund) and PF pension scheme? Please suggest what the eligible criteria are and how much amount will she get as funeral expenses or PF pension for her children.

As per law, she is not entitled to any compensation from the employer. With less than 1 year in service, she is not eligible for gratuity. Since she was on leave and committed suicide, there is no claim under the Employee Compensation Act. She will, of course, be entitled to compensation under the PF Act. If you want to help, you are free to do so, but there is no legal claim for the same.

Saswata, you may be wrong. She is not entitled to receive gratuity for less than 5 years of service unless there is an employment-related death. However, she may be eligible for EPF Family Pension and EDLI Death benefit.

Yes, you are right Sakthi. According to the government regulations, gratuity is not applicable to her because she worked there for less than 5 years. In the event of employment termination due to death, she may be eligible for EPF Family Pension and EDLI Death benefit.

Dear Sir / Madam,

Her family members (legal heirs) are entitled to receive benefits under EPF, EDLI, and also for gratuity. To claim gratuity, the number of years of service required is not five when an employee dies before completing five years.

Best regards,
Parimal

I think the law says that in case of death during employment, gratuity is payable even if 5 years are not complete. "During employment" means while she is still working with the company. It does not mean she must be in the office/factory.

In any case, gratuity is calculated at 15 days for every completed year of service. So, since she worked for only 5 days, gratuity is nil.

We both are saying the same thing, though our logic is different.

Legal obligations for employers in case of employee death

One employee died (suicide) during office hours. He had completed only 2 years of service. In this case, what are all the legal obligations for the employer? How can we assist the family through the Labor Welfare Fund (LWF) and PF pension scheme?

Assistance through LWF and PF pension scheme

Please provide suggestions on the eligibility criteria and the amount the family would receive for funeral expenses or PF pension for the deceased employee's parents.

Regards,
Sandeep