Navigating Compensation Demands After an Employee's Natural Death: What Should We Do?

Compensation for Employee's Natural Death

We are an agriculture-based industry, producing hybrid seeds. Our company has 30 acres of farmland for Research and Development, with 30 employees working in the fields. An employee who had been working with us for the past 3 years reported to work in the morning and complained of giddiness. He was taken to a nearby clinic about 3 km from the farm for treatment. While the doctor was attending to him, the employee died of a heart attack on the examination table. We then took the employee to another multispecialty hospital about 10 km away for further treatment. Here, the doctors declared him dead on arrival.

We informed the relatives of the employee, who are residents of a nearby village. Since the employee's wife was out of town, the relatives informed her and took the body to their village. The next day, in the presence of the deceased's wife, the last rites were performed.

Since it was a natural death according to the doctor's death certificate, are we, as a company, supposed to pay compensation? Our company is a small-scale but limited industry employing 30 workers. Now, the deceased's family is demanding an exorbitant amount. In this situation, what should we do? Please advise.

Compensation for Heart Attack or Natural Death

This is a tricky situation. For heart attacks or natural deaths, compensation should not be paid provided that the cause of death (heart attack) is not attributable to his duties. The fact is that he died during the course of employment. Whether the heart attack is due to his work or not is a long-debatable issue with requirements of both legal and medical aspects. The legal heirs of the concerned workman may easily file a case against you demanding compensation. The amount of compensation is fixed as per schedule, so even if you are liable to pay, you have to follow the schedule.

Is your company covered under ESI/EPF Act? Gratuity has to be paid. Have you paid already? What are the laws applicable to your establishment?

Please let me know if you need any further assistance.