Dear All,
I work with a Logistics Company as an HR Manager, and one of our Top Executive officers was killed during a visit abroad. The visit was part of one of our projects happening abroad.
From our company's side, we had covered all the expenses for moving the deceased body from abroad to his hometown, and we had provided his family with the group insurance amount. Now, his wife and child are approaching the court to seek compensation from our company.
Do we need to pay compensation to his family? Does he fall under the Employers' Compensation Act? His monthly salary was more than $80,000.
Xavier
From India, Bangalore
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2I work with a Logistics Company as an HR Manager, and one of our Top Executive officers was killed during a visit abroad. The visit was part of one of our projects happening abroad.
From our company's side, we had covered all the expenses for moving the deceased body from abroad to his hometown, and we had provided his family with the group insurance amount. Now, his wife and child are approaching the court to seek compensation from our company.
Do we need to pay compensation to his family? Does he fall under the Employers' Compensation Act? His monthly salary was more than $80,000.
Xavier
From India, Bangalore
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Dear Xavieer There is no question of denying compensation. Why this doubt ? Or is anyone from your company against it ? Warm regards. Raj Kumar
From India, Delhi
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From India, Delhi
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Dear,
As per Sec 53 of the Workmen's Compensation Act 1923:
"An insured person or his dependents shall not be entitled to receive or recover, whether from the employer of the insured person or from any other person, any compensation or damages under the Workmen's Compensation Act, 1923 or any other law for the time being in force or otherwise, in respect of an employment injury sustained by the insured person as an employee under this Act."
As he was already covered under group insurance and you have already received the insurance amount, you are not responsible now to compensate his family from the employer's pocket.
Regards,
S. Roy
From India, Delhi
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As per Sec 53 of the Workmen's Compensation Act 1923:
"An insured person or his dependents shall not be entitled to receive or recover, whether from the employer of the insured person or from any other person, any compensation or damages under the Workmen's Compensation Act, 1923 or any other law for the time being in force or otherwise, in respect of an employment injury sustained by the insured person as an employee under this Act."
As he was already covered under group insurance and you have already received the insurance amount, you are not responsible now to compensate his family from the employer's pocket.
Regards,
S. Roy
From India, Delhi
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Dear S. Roy,
What you have quoted is misleading. It might lead to wrongful actions being taken by the concerned member. The Workmen's Compensation Act of 1923 has now been renamed as the Employees' Compensation Act. There is no Section 53 in it, as quoted by you. Prima facie, a reading of what you have quoted implies that it is not about the Workmen's Compensation Act.
Kindly ascertain from your notes/references whether you are referring to the Employees Compensation Act or the Employees State Insurance Act of 1948. Can an employee receiving a salary of Rs. 80,000 be covered under the ESI Act?
Warm regards.
From India, Delhi
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What you have quoted is misleading. It might lead to wrongful actions being taken by the concerned member. The Workmen's Compensation Act of 1923 has now been renamed as the Employees' Compensation Act. There is no Section 53 in it, as quoted by you. Prima facie, a reading of what you have quoted implies that it is not about the Workmen's Compensation Act.
Kindly ascertain from your notes/references whether you are referring to the Employees Compensation Act or the Employees State Insurance Act of 1948. Can an employee receiving a salary of Rs. 80,000 be covered under the ESI Act?
Warm regards.
From India, Delhi
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Compensation under the Employee Compensation Act is available only to employees as defined under the Act. The top executive officer does not fall under this definition. Salary is not a condition for coverage. Regardless of the salary used for calculating compensation, it will be restricted to Rs. 8000 per month.
Varghese Mathew
9961266966
From India, Thiruvananthapuram
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Varghese Mathew
9961266966
From India, Thiruvananthapuram
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Dear Xavierr,
I would like to draw your attention to my reply to discussion no. 418525 regarding whether a software engineer is an employee under the Employees' Compensation Act, 1923. You have just mentioned that the deceased was a top executive - if he was predominantly discharging administrative functions, he was not an employee.
From India, Salem
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I would like to draw your attention to my reply to discussion no. 418525 regarding whether a software engineer is an employee under the Employees' Compensation Act, 1923. You have just mentioned that the deceased was a top executive - if he was predominantly discharging administrative functions, he was not an employee.
From India, Salem
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Dear All,
Thank you for your input. Please provide clarity on the following points:
- He was our Group Head for Marketing. Does he fall under the employee compensation act as an employee?
- Our company has already provided a group insurance amount to his family. Are we obligated to pay additional compensation to his family apart from that amount? His wife has approached our company seeking compensation.
- He worked with us for more than 5 years and passed away during an assignment abroad due to a robbery attempt.
Thank you.
From India, Bangalore
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Thank you for your input. Please provide clarity on the following points:
- He was our Group Head for Marketing. Does he fall under the employee compensation act as an employee?
- Our company has already provided a group insurance amount to his family. Are we obligated to pay additional compensation to his family apart from that amount? His wife has approached our company seeking compensation.
- He worked with us for more than 5 years and passed away during an assignment abroad due to a robbery attempt.
Thank you.
From India, Bangalore
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How much compensation or insurance amount has given to the nominee of deceased person? What about gratuity? Earn leaves?Salary settlement?
From India, Secunderabad
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From India, Secunderabad
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From our side we had released only a part payment of his outstanding dues including salary ,gratuity & group insurance because our company lawyer suggested us to collect a succession certificate
From India, Bangalore
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From India, Bangalore
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Dear Xavierr,
The intentions of your company do not seem to be bona fide.
Why was only a part payment released?
Knowing fully well the hardship the family must be undergoing after the on-duty death of its earning member!
And now the company is trying to avoid payment of any compensation for death during the course of employment!
Why is the need for a succession certificate here? What about the nominations as given by the deceased employee?
Why was this simple routine procedure referred to the company lawyers (unless the company wants to shy away from its responsibility and dues)?
This was a regular HR action. What happens if the company lawyer gives the opinion that unless there is a decree by the court, no payment needs to be done?
Would you wait until the aggrieved party files a court case and then wins the case after some years?
(Meanwhile, the ex-employee's family suffers)!
It is impossible to bring back a dead employee to life, but the least an employer can do is pay all the dues of the deceased employee gracefully to his dependents.
It is very deplorable for a company to withhold final payments even in the case of death on duty.
From India, Delhi
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The intentions of your company do not seem to be bona fide.
Why was only a part payment released?
Knowing fully well the hardship the family must be undergoing after the on-duty death of its earning member!
And now the company is trying to avoid payment of any compensation for death during the course of employment!
Why is the need for a succession certificate here? What about the nominations as given by the deceased employee?
Why was this simple routine procedure referred to the company lawyers (unless the company wants to shy away from its responsibility and dues)?
This was a regular HR action. What happens if the company lawyer gives the opinion that unless there is a decree by the court, no payment needs to be done?
Would you wait until the aggrieved party files a court case and then wins the case after some years?
(Meanwhile, the ex-employee's family suffers)!
It is impossible to bring back a dead employee to life, but the least an employer can do is pay all the dues of the deceased employee gracefully to his dependents.
It is very deplorable for a company to withhold final payments even in the case of death on duty.
From India, Delhi
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