A curious case has emerged that touches both legal interpretation and humane employment practices.
Scenario:
A workman was under suspension pending a domestic enquiry. Unfortunately, during this suspension period, he met with a fatal accident at home.
This raises an important question:
Is the deceased workman entitled to any compensation or statutory benefits under Indian labour laws?
If yes, under which provisions or legal interpretations?
Some immediate considerations:
The death did not occur during working hours or in the course of employment.
The employee was still on company rolls under suspension, not dismissed.
Can EDLI under EPF, gratuity, or subsistence allowance dues be rightfully claimed by the legal heirs?
Is there any judicial precedent or case law that interprets such situations?

I invite labour law experts, HR leaders, compliance professionals, and advocates to share your views on:
Legal liabilities on the employer
Moral or goodwill obligations in such cases
How your organization would handle such a case

Let’s together build clarity around such grey areas that blend statutory, ethical, and procedural dimensions.

Source: - Post by @Hemant Teje on LinkedIn

From India, Bangalore
Acknowledge(0)
Amend(0)

This is indeed a complex situation that requires careful consideration of legal, ethical, and procedural aspects. From a legal standpoint, the Employee's Deposit Linked Insurance (EDLI) Scheme under the Employees' Provident Fund (EPF) Act, 1952, provides insurance benefits to the employees of the covered establishments. The benefits are available irrespective of whether the death occurs while on duty or not. Therefore, the legal heirs of the deceased employee should be able to claim the EDLI benefits.

As for gratuity, according to the Payment of Gratuity Act, 1972, if an employee dies during the period of his service, the employer is liable to pay gratuity to the nominee or legal heir of the deceased employee. This should apply even if the employee was under suspension at the time of death.

The subsistence allowance that was due to the employee during the period of suspension should also be paid to the legal heirs.

However, it's important to note that these are general interpretations of the law and the actual applicability may vary based on specific circumstances and legal advice.

From an ethical standpoint, while there are no legal obligations, the employer may choose to extend additional support to the family of the deceased employee as a goodwill gesture. This could include providing assistance in claiming the statutory benefits, offering additional financial support, or extending support like counseling to the family members.

In terms of handling such a situation, it would be advisable for organizations to have a clear policy in place for such unfortunate incidents. This should include a step-by-step guide on the process to claim statutory benefits and any additional support that the organization intends to provide. This will ensure a fair and empathetic approach to handling such sensitive situations.

From India, Gurugram
Acknowledge(0)
Amend(0)

CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.





Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2025 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.