Employee Commited Suicide - How To Handle - PDF Download

Dear all,

Since the worker committed suicide at his residence, the company is not responsible for any additional benefits except to clear his legal dues, i.e., earned wages/salary, leave encashment, gratuity, interim bonus (as bonus becomes payable within 8 months from the closing of the financial year), etc. The management and coworkers, if they wish voluntarily on humanitarian grounds, can help financially, but it is not a legal right.

The management should extend help in the early settlement of ESIC funeral benefit, which is Rs. 10,000, and admissible pension from EPF for his dependent wife and two elder children and settlement of EDLI and EPF contribution.

P K Sharma

Dear All,

I too agree with the suggestions given by Mr. P.K. Sharma in this thread. The employer's liability does not arise at all if the death occurs at his residence out of the workplace, whether it be natural or suicide. If you have paid him Rs. 10,000/- to meet his funeral expenses as goodwill, it does not attract any provisions of the law unless there is an agreement with the workers' union. You should not entertain any demands from the deceased family members. At most, you can settle his full and final account against the services rendered in the organization, including salary, other allowances, leave salary, and overtime wages, if any.

You can prepare an office order stating that Mr. XXXXXX has expired on xxxxxx and his name has been struck off the company's rolls with regret, effective from xxxxx. Display the same on the notice board of the establishment and pay his applicable dues. It is the deceased wife's responsibility to claim Provident Fund and Pension from EPFO at her interest.

Adoni Suguresh Sr. Executive (Pers, Admin & Ind. Rels) Retired Labour Laws Consultant

Not a painful deal from the employer's side. First, the employer can give his pending salary, bonus, leave, and gratuity benefits to his nominee. Generally, the employer believes that the nominee declared in ESIC and PF should be the same person. So, take a letter from his nominee stating that the person has died on the respective date and kindly give all the pending amounts to me. Then pay him/her (most recommended by cheque). Next, help them claim ESIC funeral charges, approximately $10,000.00. Also, assist them with PF department pension formalities. No financial burden or practice should come on the employer's side. If they come with political people, inform them that we will fully support all formalities in ESIC and PF. Do not make any big commitments; otherwise, it will set a bad practice in your factory/unit. That's my view.

Dear Stephen,

Please go through the attached notes on 'Law & Procedure' relating to 'Funeral Expenses' under ESIC rules for your information and guidance.

For the other matters, I don't think you could fulfill all the requests being made, as much will depend on the deceased worker's family's conditions, economic background, immediate needs, and future plans. Your role would be limited to arranging the full and final settlement of his dues. It will be up to the widow and other dependents of the deceased to decide how to plan for their future. They would be grateful if you could assist in finding a job for his wife or children, provided they meet your compassionate grounds criteria. I suggest seeking guidance from past instances in similar situations and your HR policy. Care must be taken to prevent any opportunists from taking advantage of the money and benefits you are providing for the family. It is crucial as various entities, including unions, may exploit such situations for their own agendas.

Waiting for your response.

Thanks.

Dear Stephen,

Greetings for the day.

I deeply regret the mishap and express my sympathy to the family members. We are aware that committing suicide is an offense. However, considering the sympathetic circumstances, you can manage the funeral allowance from ESIC as suggested earlier by various contributory members, including Mr. Sharma of APEX management. Simply forward the medical reports to the ESIC branch office.

Regarding compensation, EPF will provide social security benefits to the family members through EPS, along with medical facilities from ESIC. You do not need to worry about compensation; you are not liable to pay a single penny.

Thanks & Regards,

Sumit Kumar Saxena

Hi,

Death benefits that the deceased employee's family receives are as follows:

1. Funeral Benefit under ESIC - Rs. 10,000.
2. EDLI amount under EPF Act - 20 times the Basic+DA.
3. Widow pension and Children's Pension under EPF Act.

Regards,
Keshav.

If somebody commits suicide, especially at home, you are not required to pay anything beyond their dues. The amount of 10,000 that you paid could be recovered from his full & final settlement. However, if you paid out of compassion or sympathy, it is a different issue. Legally, he is not entitled to any compensation for committing suicide, especially at his residence. You can flatly refuse. If they choose to pursue this further, let them go to the courts, and you will not face any problems. Even his life insurance policy may not pay out, as he contributed premiums.

If you want to help his family or dependents/nominee, please ensure that his PF, gratuity, and full & final accounts are settled properly. Also, make sure that his dependents (widow) receive pension from PF as she will not receive any pension from ESI.

Hi all,

It is good to see that everyone is giving their well-experienced suggestions, which are valuable in every aspect. When dealing with a death case, whether the individual passed away while working or at home, the initial sympathy naturally goes to the deceased's family and their future well-being, along with their benefits, laborers/workers, and local leaders. Unions often compel management to contribute something to assist the deceased's family in maintaining their livelihood.

Initially, it is advisable to contact the District Authority to appoint an Arbitrator for this case. Present all relevant documents, especially the statutory ones, to the Arbitrator and await their decision. It is crucial to follow the decision made by the Arbitrator for the smooth functioning of production and the work environment, as it directly impacts the work family.

The suggestion for a single arbitrator is made with the belief that both the employer and labor should contribute equally to the organization's prosperity. If labor feels that management is only exploiting them, the organization may not thrive and could suffer losses.

Following the arbitrator's decision will promote harmony in the workplace and facilitate a positive work environment.

Thank you.

One of our employees committed suicide. He was an unmarried man with dependent parents. Is there any possibility of ESIC pension? Kindly guide me.