Employee Death Procedures: HR Responsibilities and Benefit Claims Process

Dear All,

How to close the file if an employee dies of medical reasons?

My idea is to close the file by keeping the death certificate and removing the employee's name from the PF list.

Are there any other steps to consider?

Regards,
Suresh

On the death of an employee, please obtain the death certificate and place it on record. According to the Payment of Gratuity Act, 1972, an employee's nominee is eligible for the payment of gratuity even if the deceased has not completed 5 years of service. The condition of 5 years of service is for living employees. Upon death, the nominees receive the benefit of gratuity irrespective of whether 5 years of service have been completed or not. The nominees are also eligible for a pension under the Employees' Pension Scheme, 1995, which is linked to the Provident Fund of the Employee.

So, upon the death of the employee, please work out gratuity, pay it to the nominee (spouse or parent if the deceased was unmarried, etc.), obtain an application for the payment of PF dues, and also deposit linked insurance (present rate Rs. 60,500) from the Employees Provident Fund Organization and forward it to the concerned EPFO office. Additionally, obtain an application from the family members of the deceased members for the payment of pension in Form 10-D and forward it to the EPFO with details of the remittance of pension contributions which are linked to one's provident fund. Pension under EPS 1995 is eligible irrespective of one's length of service. The only condition that applies is that the deceased should be a member of the provident fund. All members of PF are necessarily members of EPS 1995.

These are the duties of HR. The bereaved family may not be aware of their rights and may not be in a proper frame of mind to claim all these benefits. The HR of the last employer firm is expected to assist them.

You can close his personal file with the death certificate as received from the nominee/family member. Remove his name from the payroll/muster roll by mentioning the date of death. Intimate the same to the PF/ESI department by a separate letter. Intimate the nominee/legal heir for the application for death benefit under ESI and PF. Extend your help in claiming the above from the management side.

Thanks to all,

I have applied for his gratuity, PF, and pension and removed his name from the muster roll. I have also intimated the PF office by submitting Form 10 for his deletion. He is not eligible for ESI due to his high salary.

Are there any other tasks that need to be completed?