Compensation for Natural Death at Labor Colony: What Are the Urgent Steps to Take?

Compensation for Natural Death at Labor Colony

What is the compensation applicable for a worker if he dies (natural death) at the labor colony at night in the construction field while he is not on duty? Please clarify, as this is most urgent.

Clarification on Compensation for Deceased Worker

Your post needs elaboration. Was the deceased a construction worker? If so, was he employed through a contractor? Did he stay on the particular night at the quarters/shed provided in or adjacent to the construction site? Was his body subjected to a post-mortem examination? What was the reason mentioned in the post-mortem report as the cause of death?

Deceased Construction Worker Details

Was the deceased a construction worker?
Yes

Was he employed through a contractor?
Yes

Did he stay on the particular night at the quarters/shed provided in or adjacent to the construction site?
Yes

Was his body subjected to a post-mortem?
Yes

What was the reason mentioned in the post-mortem report as the cause of death?
Heart stroke

Dear Rupesh,

The construction worker died at night while staying in the shelter provided at the construction site after the day's work. The cause of death revealed in the postmortem certificate can be attributed to the hard physical labor generally involved in construction work. If the employee had any previous history of heart ailment or was an aged person, the work done by him on that particular day could have been an aggravating factor for the heart attack later during the same night.

Thus, there is every possibility for the dependents of the deceased employee to claim compensation under the Employees' Compensation Act, 1923, arguing that the heart attack causing death was due to the stress and strain involved in the construction work on the fateful day, deeming it as an accident arising out of and in the course of employment against both the Principal Employer and the Contractor in the absence of ESI coverage.

If the contractor has taken an insurance policy covering his liability under the EC Act, 1923, the insurer would be liable to pay the compensation claimed. Otherwise, the Principal Employer would be liable to pay the compensation first and recover it from the contractor later.

Dear Colleague,

This is a common scenario in all construction sites/construction industries. You have rightly conducted a post-mortem. If you are very sure that this is a natural death, there may not be any compensation applicable. However, as rightly pointed out by our learned colleague, there may later be a claim connecting his employment on that day of the incident and stating that he further stayed in the shelter provided by the employer, etc. Therefore, you need to wait for any claim under the Employees' Compensation Act 1923, and then you can respond legally at that time. It would be advisable to engage a legal counsel and proceed on merit before the Commissioner, for which you need to keep all relevant documents.

Nevertheless, take the family into confidence. Considering he died on the premises/in the shelter provided, you may approach this subject on a humanitarian basis. Perhaps support for the funeral and employment for the ward, etc. Any monetary compensation you directly provide to the wards will not amount to Legal Compensation under the Employees' Compensation Act 1923. If there is a legal claim later, whatever amount you paid will not be considered, and your employer will need to settle the compensation before the commissioner. Therefore, handle this situation with care. Ensure all possible settlements like PF/EDLI/Pension benefits/any other voluntary cash assistance, etc., are made. In the case of compensation, it has to be considered before the WC Commissioner whenever a legal case arises at a later date. Once again, it is advisable to extend all humanitarian support and benefits possible as he had worked for the company, and his family has suffered a loss. Take care, and when someone is lost, we should provide support to the fullest extent possible.

Is workers' compensation applicable or not for that worker?

Please clarify, sir.

In this case, the nexus between "CAUSE OF DEATH" and his "EMPLOYMENT" has to be properly examined based on all available factors/documents/fact-finding by a competent Medical Expert and by the Commissioner under the Employees' Compensation Act, 1923, to decide whether the workers' compensation (WC) claim is liable or not. This requires a thorough inquiry. Therefore, you may approach and discuss the matter with the nearby Commissioner of Employees' Compensation from the Labor Department who has jurisdiction in your area. This would be appropriate. Whether you are asking this question on behalf of the employee or on behalf of the employer/company, the answer is applicable to both sides.

Heart Attack as an Employment Injury Under the EC Act 1923

The question of whether a heart attack suffered by a workman is considered an employment injury actionable under the EC Act 1923 is a very complex legal issue and must be judicially determined by the Commissioner (the Labour Court Judge). In terms of legal precedent, there are several judgments at the high court level supporting differing views.

The crux of the legal test lies in determining whether the employment conditions directly led to the heart attack. The primary factor to consider is the nature of the employment and the extent to which the job contributed to the physical stress and strain of the work. Other important factors include working conditions such as exposure to extreme elements like excessive heat, fumes, or cold. Mental stress plays a significant role, especially stemming from strained relationships with superiors, hostile supervisors, an unfriendly work environment, or challenging performance targets.

Additional considerations include precipitating factors like the denial of leave, promotions, or other employment-related issues. The overall health condition of the deceased employee also holds substantial importance, particularly if there is a history of previous heart attacks, high blood pressure, diabetes, or other relevant medical conditions. All these factors must be carefully assessed before reaching a conclusion.

Dear colleagues, it is premature to conclusively state at this juncture when no facts have been revealed by any investigation into the death of a contractor's construction worker at the site.

Furthermore, whether there was any connection between the employment and the cause of death remains unknown. No legal heir of the deceased worker has alleged such a connection in any claim. Without this information, offering any solutions to the poster at this stage based on assumptions or guesswork is unwarranted. The responses from the knowledgeable members seem to be going in circles without hitting the bull's eye due to the lack of facts. Hence this post. No offense intended.

Regards,
Vinayak Nagarkar HR and Employee Relations Consultant

If he was an EPF member, his spouse or dependents are eligible for a family pension and a lump sum amount under EDLI (Employee Deposit Linked Insurance), which is a part of the EPF scheme. All members of EPF are also EDLI members. This amount ranges from a minimum of 2.5 lakhs to a maximum of 7.5 lakhs. There is a formula for this. For family pension and EDLI compensation, you have to apply using a composite application form, which can be downloaded from the EPFO site. Two minor children below 25 will also receive 25% of the pension eligible for the spouse. A person who has contributed for only one month to EPF is eligible regardless of the cause of death. The minimum pension now is 1000 but is under revision, potentially by February. The expected range is from 3000 to 7500.

Under ESIC, he is also eligible for similar compensations, but I am not fully aware of this. I think the death has to be work-related.