Payment To Dependent

Dear All Senior Members,

One of our workmen was involved in a road accident during his personal visit to his village in Dec-2013. We had calculated his Full and Final (F&F) amount and issued a cheque in the name of his wife. They reside in a rural area, and his father has requested us to lodge a complaint with the Employee State Insurance Corporation (ESIC) and declare his death as occurring during his employment period, which is an illegal act. Since we refused to comply with this request, his father has also declined to accept the F&F amount. Whenever we try to contact his father regarding the F&F amount, he refuses to accept it.

In this situation, could you please advise on what actions we can take? Should we deposit the amount with the Labour Court or simply issue a letter and send it via registered post?

Thank you.

Dear NPMB Ji,

As you have mentioned that the employee was involved in a road accident, in that case, I feel that you made the right decision not to consider it a death during employment. It is illegal and may create problems for your organization.

Although, concerning the FnF Cheque, as you have mentioned that his father has denied to accept this cheque, is there any written statement from him?

If not, then you should send this cheque through Registered AD in the name of the deceased employee's wife, as she is his nominee for whom you had prepared the FnF Cheque. Otherwise, it might be possible that in the future, she may claim the amount with interest as she didn't deny taking it.

If there is a written statement from his father, in that case, you may also ask him to provide it in writing with the signature of his daughter-in-law. You can then submit the cheque along with a copy of their statement to the labor office with the necessary acknowledgment. This will protect you in the future.

Hope this will help you.

Hi,

As Mr. Bhuvan said, it's minimal documents to keep in records for such cases with written documents. As it is sensitivity-oriented, get the outputs from your legal/regulatory team.

Dear NPMB,

In my opinion, you should deposit the F&F amount of Gratuity with the Controlling Authority as per the rule, i.e., with ALC(C). As regards EPF and other dues on account of salary and leave encashment, as the case may be, it should be sent to the Nominee via Registered post with A/D or through Speed Post. Please don't forget to keep proof of earlier dispatch and re-dispatch. Even if the envelope is returned undelivered this time, keep the returned envelope, covering letter, and the Cheque in the record/personal file.

Secondly, to provide a human touch to the grieving family, you may call the widow of the deceased employee to notify her of your intent through a letter. Explain the situation to her, offer solace, and convince her to accept the amount as this is the maximum you and your Company can do. Advise her to seek legal recourse to claim compensation under the Motor Vehicle Act from the State.

I hope your human touch will help the father and widow of the deceased employee understand your constraints better, and they will appreciate your concern.

AK Jain

Dear Sir,

He met with an accident outside the purview of the ESI Act. It cannot be hidden because everybody knows the fact. You can settle his account to the legal heir as per the rule. If they refuse to receive it, it will be their lookout. You need not worry. Keep a record of it for future reference and records.

D. Gurumurthy.