In case of Employee Death - what will be company liability - what will be the process?

Respected seniors Please let me know that if an employee dies at his home then will the company be liable to pay his EL and gratuity if he has not completed 240 working days in our company. If the company will liable then what will be the process please explain.

If the employee has not even completed 240 days of service in all, then there is no statutory liability to make any payment. If the establishment wants to make any payment out of its social commitment, it can voluntarily do so. If the facts are different, pl give them in full.

Dear Members,

In case of Gratuity there is no qualifying limit for service period. If the establishment is covered under the POG Act, 1972 then Gratuity will be payable to the nominee of legal heirs of the employee.

The due EL and outstanding salary will also payable to the nominee of legal heirs of the employee.

If covered under EPFO and he is not an excluded employee then EDLI and Pension benefits also available for the family members.

Seniors pls throw more light on the matter.

I concur with the replies of the above two learned members.

Death of an employee dieing in harness, whether natural or otherwise, outside the zone of his/her employment both in time and space does not create any statutory liability on the part of his/her employer for any compensation.

Other terminal benefits like statutory gratuity, encashment of EL etc., are payable to the deceased's legal heirs subject to conditions of eligibility prescribed in such laws.

The requirement of minimum 240 days service is one among the standard factors adopted only for the purpose of computation of certain terminal benefits like gratuity, retrenchment compensation. Of course, the individual employer has the discretion to pay better compensation on humanitarian grounds to the bereaved family of the unfortunate employee as suggested by Mr.KK!HR.

But, the employer should ensure disbursement of the amounts to the right persons basing on documentary evidence like nomination already made by the deceased, legal heir certificate issued by the appropriate authority etc.
In case of any dispute, the employer should deposit the amount with the respective statutory authority with a request to effect payment to the right person.

The employer has to pay Unpaid wages if any, EL and gratuity (as per the Gratuity Act, the gratuity is payable up to the date of death irrespective of whether he completed five years or not) even if an employee dies at his home, in the case of death completion of 240 working days hardly matters.