Retirement Benefits Dilemma: How to Determine Exit Date After Employee's Passing?

If an employee's last day present was the 7th of the month and he dies on the 11th of the month, what will be his exit date for retirement benefits?

If the employee has any leave balance in his account, the period between the 7th to the 11th shall be treated as if the employee was on leave, and his exit date will be deemed to be the 11th. For any doubt, you may consult me separately.

Thank you so much for your valued information. One point is, "If an employee has no leave in his credit," then what will be his exit date? Please guide.

Irrespective of how you treat his absence from the 7th to the 11th, whether with pay or without pay, his last date of service is up to his date of death for the purpose of computing retirement benefits. Although the choice is yours, it would be a good gesture to show to the departed soul if the period of absence is treated with pay.

Regards, Vinayak Nagarkar
HR and Employee Relations Consultant

You have not mentioned the date of death of the employee. If it pertains to PF/DLIS claim, the date of exit should not be prior to the 11th; else, the DLIS claim will not be entertained by EPFO. Have you paid his PF contribution for that particular month? If not, prepare his final settlement, pay his salary/wage up to the 11th, and remit the PF contribution to the EPFO as a supplement payment. Please do not process his claim form before remitting the contribution, and also do not forget to write the date of exit as the 11th. Since the employee was in your employment, you have to consider his date of exit as the 11th only, irrespective of whether he was with pay or without pay.

Regards, Suresh

Determining the Date of Termination for Retirement Benefits

The question here is what should be the date of termination of the contract of employment for the purpose of retirement when the employee dies after some days since he was last present for work.

I think that here by 'retirement' the poster actually means the cause of action giving rise to the termination of employment and consequent terminal benefits.

Though the employee was not present for employment after the 7th day of the month, he was still in the service of the employer despite his absence due to leave of absence or unauthorized absence. But his demise on the 11th day automatically extinguished the subsisting contract of employment and thus caused the cessation of the contract once for all.

In case of no leave at his credit, the 4 days of absence have to be treated only as leave on LOP and hence it cannot be an impediment to determine the date of his exit.

Therefore, the terminal benefits of the deceased employee should be calculated on the basis of the entire length of his service from the date of his joining the service until the date of his death while in service.

Please treat the period from the 7th to the 11th as eligible leave or leave without pay, and designate the 11th as the date of exit so that his nominee will receive EDLI benefits.