Subject: for EDLI & pension - transferred four employees from one department to another

We transferred four employees from one department to another in 2013. Three employees accepted the transfer letter and started their work in another department. However, one employee filed a labor court case and challenged the transfer letter. We convinced him to start work in the new department, and he agreed, received the transfer letter, and started his work as assigned.

After six months, he did not show up again, so we refiled the case in the labor court. Once again, we convinced him and asked him to resume work. Subsequently, he apologized in writing for his absence from duty and fieldwork, requesting that we allow him to return to work. We accepted his request, and he resumed his duties. However, after a few days, he once again stopped coming to work on his own and refiled the case in the labor court, claiming that the company was not allowing him to do his job. Despite this, his name remains on our muster roll, and we are marking him as absent.

In 2024, we learned that he had passed away due to cancer, and now his family is seeking a settlement. We are prepared to pay his gratuity amount and also assist his family by providing a lump sum amount. Now, my question pertains to whether his wife is eligible for a pension and if his family is eligible for the Employee's Deposit Linked Insurance (EDLI) benefit. Despite his absence for the last seven years, given that the case is pending in the labor court and we have not terminated his employment, please advise on EDLI and pension eligibility.

Regards,
Sanjay Tiwari

There are some clarifications required.

He has been absent for seven years, but you have not taken any action against it? While a dispute is pending in the Labour Court (I am not convinced why this employee went directly to the Labour Court bypassing the conciliation by the Labour Officer), why did you arrive at a bipartite settlement - that you allowed him to work from home, etc.? What is the status of his complaint before the Court? Did you ever appear before the Court? Did you ever submit your counter?

Coming to the issue of Pension and EDLI, the EPFO will decide what is payable. The amount of EDLI will depend upon the PF accumulations. Pension will be paid to the spouse, but the amount of the pension, again, will depend upon the contributions, and since there are so many Non-Contributory Periods, the amount would be less. Anyway, it is not the headache of the Company but it will be taken care of by the EPFO only.