Navigating Employee Death Benefits: How to Handle Claims from Multiple Spouses?

Hi everyone, one of our employees has passed away in a road accident while he was returning home after duty. He has two wives, one legal and the other illegal. However, in his EPF, he has not nominated either of his wives, and no other information is found in his EPF record. He joined the company at a time when there was no HR department, and one still does not exist here. I have recently joined this company, and this is my first encounter with such a case. He is not covered under ESIC.

Could someone please suggest the course of action I should take to settle this case? Both wives are claiming to be the legal wife, though we have determined who the legally wedded wife is. Please provide guidance on the entire process to be followed in settling his account.

Thank you in advance.

Dear Mr. Yashpal,

He will be treated in due course of employment in your given situation. In this case, you can ask his family members to submit the list of Legal Heirs as per the Law of the Land and pay his dues to them as per the Law and submit the documents for Pension also.

Thanks and feel free for any further queries.

Since the employee passed away outside the office premises, the employer's liability is to clear and process his full and final settlement, PF, pension, EDLI contributions, and gratuity.

Also, considering the nature of death, all employees may contribute a voluntary amount for his family, and your management may also contribute some money to be paid to his legal heir. Obtain the death certificate from his wife.

As per Indian law, only the legal heir can claim all benefits. Therefore, obtain the legal heir certificate from his wife as proof. Also, please provide the marriage certificate if the marriage is registered, along with the marriage invitation and marriage photos as additional documents.

The legal heir is eligible to receive the PF amount. She, along with any children, is also eligible to receive the EDLI contribution. She is entitled to the pension as well. Please check with the PF office and process the pension. Even though he did not submit a nomination form, the wife and children are the legal heirs, and this needs to be proven.

If your office is linked with LIC for gratuity (Group Gratuity Scheme) and the special rider option is selected, his legal nominee can receive gratuity equivalent to his total service period if he is alive. If there is no tie-up with LIC, the employer must clear the gratuity as per gratuity laws.

Also, on a humanitarian basis, consider offering employment to his wife if she is educated and her qualifications match the office's requirements and feasibility to accommodate her.

Please document all processes, and whenever payment is issued to the legal heir, obtain acknowledgment from his wife as proof of clearance.

Compensation Liability Under Employee Compensation Act

If your employer has not covered your employee under ESIC, then the liability for compensation falls under the Employee Compensation Act.

Compensation Calculation in Case of Death

In the case of death, the compensation calculation is as follows:

1. The compensation payable on death from the injury is either:
(i) a minimum of Rs. 80,000, increased to Rs. 120,000
(ii) 50% of the monthly wages of the deceased multiplied by the relevant factor

The monthly wage ceiling is limited to Rs. 8,000. Additionally, the employee is entitled to death benefits under the EDLI scheme.

EDLI Scheme Benefits

Under the EDLI scheme, the claim amount is calculated as 30 times the average monthly salary in the past 12 months, subject to a maximum of Rs. 6 lakh (Rs. 4.5 lakh basic + Rs. 1.5 lakh bonus).

Thank you.

Dear Mr. Yashpal,

The WC authority has to decide the beneficiary as per the legal heir certificate issued by the Tehsildar. The PF claim and pension are to be settled in favor of the legal heir filled in the application; otherwise, the case will go into dispute.