Navigating Employee Death at Work: Do We Need to Report to Authorities and Offer Compensation?

Respected seniors,

I am Ramu, working as DM-HR in a manufacturing unit. My query is regarding an incident where one of our employees died while on duty due to a heart attack. Do we need to inform the authorities at the Factories department? The individual was in a Manager cadre or above, within the ESI coverage limits. We have already paid gratuity considering his service up to retirement.

Is this scenario eligible for any compensation under the Employees' Compensation Act? Your guidance on this matter would be greatly appreciated.

Regards,
Ramu

Though the unhappy incident described in your post evokes pity and your earnest attempt to help the family of the deceased deserves the appreciation of this forum, yet I am constrained to submit that the applicability of the ESI Act, 1948 stands subject to certain conditions. Thus, the applicability of the Employees' Compensation Act, 1923 is subject to the specified capacity of the employment of the person seeking relief under the Act.

In this connection, you may refer to the provisions of Sec.2(i)(dd) of the Act, which defines the term "employee" for the purposes of this social security legislation. The definition under section 2(1)(dd) of the Act is divided into three parts - parts (i) and (ii) specifying the persons by designation, whereas part (iii) by the capacity of employment as listed in Schedule II of the Act. If you make a perspicacious analysis of the enumerated list, you will realize that employment in an administrative or managerial capacity is not included. It's important to note that this list is exhaustive rather than illustrative.

Therefore, this case is not suitable for claiming compensation under the Act.

Yes, this incident should also be reported to the Office of the Inspector of Factories in the area, as he was employed and working in the factory.

Warm Regards,

Bharat Gera
HR Consultant