Daily Wage Employee Natural Death

Hello Everyone,
I had a daily wage employee who was diabetic when he started working itself. He used to come for work about 4 days in a week only. His wage was Rs 300 per day.
Last month he died a natural death due to Multiple Organ Failure(He was a drunkard). He was about 50 years.
Now his Family is expecting compensation from me.
Please tell me am I liable to give any kind of compensation.
(I had given 10,000/- for his cremation).
Thanking you for Guidance,
Rahul

let us all pray for his soul to rest in peace. what you have given is enough for his last rites. If he was covered under ESIC he would get funeral expenses. based on your inputs he is not an employee and he doesn`t deserve any compensation.

Ok. He is not Covered in ESIC.
Kindly help me how to put this to his Family. They are expecting something from me.

Hello Rahul,

You haven't mentioned anything about his family--are there any grown-up kids, etc

The options open to you would also depend on how long this person worked for you.

First & foremost you need to make it clear that legally you are not bound to pay any compensation. And more so, being a drunkard, they need to be made to appreciate that you have kept him on the job on compassionate grounds rather than any advantage for you.

However, people in this economic category can make your life miserable [they wouldn't really understand legal aspects] & in order to save your time handling them, you MAY need to devise OTHER ways.

One way, if you find it affordable & practical, can be to give the deceased person's job to one of his family members.

Another way could be to fund a kid from the family for his/her education.

It all depends on WHETHER you wish to help this family or not. If Yes, then there can be ways found. HOWEVER, you also need to ensure the fact that they DON'T take it as an Expectation but 'help' from you.

If No, then read them the Rule Book. The Best-case-scenario would be to pay them something AND RECORD this in writing as a F&F settlement. The Worst-case-scenario would be that they MAY raise a stink, for which you need to be ready legally.

All the Best.

Rgds,

TS

With his salary level he would be covered under ESIC. In that case he will get compensation from there.
If not, next question is of compensation under employee compensation act (workman compensation act). That is applicable only in case the death was due to or in course of employment. If he died of natural causes in a hospital then in any case he is not eligible for any compensation from you.
Please give us all details that has a bearing on the case of you want an answer that is actually correct

Dear Rahul Ji,
Your help for his family was a very good initiative. Can i know that how long time he work for you? If he work at least 20 days per month than why you couldn't put him under ESIC. But now all i was over & you can say to their family that if he was covered under some Insurance plan than he can get otherwise nothing.

Dear Mr. Rahul,
First of all, can you please tell, whether he is covered under EPF Act. If so, you can avail EDLI benefits for his bereaved family.
As informed in your post, his daily wage is Rs. 300/- per day and he has worked for at least 4 days in a week. That means, he might have worked for 16 days in a month. Hence, his salary would be around Rs. 4800/- per month. If this calculation is right, then his nominee could get EDLI benefits up to Rs. 1,15,200/-. provided if you have remitted PF for this amount.

You may have to submit the duly filled Form 5 (IF) and along with Death Certificate, Nomination form copy, Bank details and cancelled cheque leaf copy.
If your organisation is big enough, you may even collect some amount from the volunteer staff besides contributing your share and can help his family.
P. Vathiraj

You have not spelt out the type of Industry where he was working. Is it Construction?
Pon

First of all you have not mentioned nature of work. whether it is a construction company or factory or BPO and number of worker engaged. If he was covered under EPF act 1995 scheme then his legal heir will EDLI benefit and monthly pension.His legal heir will not get any benefit from ESIC (except cremation amount). & through workmen compensation act.
Regards

Hi All,
Thank you for your responses.
We are Xerox machine dealers. He was going to repair the machines onsite.
We are a small office with total 3 employees. So we are not covered in EFP. There was no PF.
Waiting for your replies.
Thanking You,
Rahul