I think that's the great help that you can do..
But there are no such type of provision in the labor legislation..
So to make that effectively first you have to take consent of all the members of your team..
Then you have to inform concerned authority like HR of your organization..
After getting the permission and support you can directly give that amount to the family of your friend or you can directly transfer money to his bank account or the person belongs to him..
I think transfer of money or giving check is the most correct way to maintain transparency...
I wish good luck...

From India, Delhi
Hi,
We made similar provisions in our organisation. The management didnt get involved directly, we have an officers association who took the initiative, took consent from all the officers belonging to the association, discussed with management and finance dept, took out a circular, had public meetings and gave officers the freedom to refuse contribution. 99% officers agreed for contributions. Every month a base amount of Rs50 was deducted from our salary and for every demise in a month Rs100 was deducted. In case of 2 such incidents, Rs 200 was deducted for that month.
Our association planned the policy properly, calculated the number of officers, the total amount of contribution and decided on a fixed amount to be given to the deceased's family. We have a huge employee strength so this kind of deduction was sufficient.
Regards

From India, Visakhapatnam
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