In case of death of an employee, do we have to pay notice period as part of final dues?
From India, Mumbai
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From India, Mumbai
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Hi,
The question is not very clear.
Is the scenario about the death of an employee inside the work premises while on duty (in factories/industrial establishments/corporate offices), or outside the office premises while on official work, or even while at home?
Depending on the case, nominees of the employee may be eligible for benefits such as PF, ESI, labor welfare fund, and the Employees' Compensation Act.
From India, Madras
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1015The question is not very clear.
Is the scenario about the death of an employee inside the work premises while on duty (in factories/industrial establishments/corporate offices), or outside the office premises while on official work, or even while at home?
Depending on the case, nominees of the employee may be eligible for benefits such as PF, ESI, labor welfare fund, and the Employees' Compensation Act.
From India, Madras
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What is a notice pay? It is the payment in lieu of notice period.
What is the objective of the notice period? It is the period required for the employer to find a replacement. It is the period for an employee who is terminated or asked to go to find a suitable job for themselves.
In the case of death, obviously, everything, including the employment contract, will come to an end. But is it due to an employee resigning? No. Is it due to an employer terminating the employee? No. That means neither the employee nor the employer has terminated the contract of employment, but the contract comes to an end automatically. As such, neither party has any liability to pay notice pay. If the dependents are asking for notice pay, naturally, you can also ask for it from the employer's side, stating that you did not terminate the contract, but the employee has done it and as such, he or his dependents should give notice pay!
From India, Kannur
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What is the objective of the notice period? It is the period required for the employer to find a replacement. It is the period for an employee who is terminated or asked to go to find a suitable job for themselves.
In the case of death, obviously, everything, including the employment contract, will come to an end. But is it due to an employee resigning? No. Is it due to an employer terminating the employee? No. That means neither the employee nor the employer has terminated the contract of employment, but the contract comes to an end automatically. As such, neither party has any liability to pay notice pay. If the dependents are asking for notice pay, naturally, you can also ask for it from the employer's side, stating that you did not terminate the contract, but the employee has done it and as such, he or his dependents should give notice pay!
From India, Kannur
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Death occurs out side of work environment. But do we need to pay notice period as part of final dues?
From India, Mumbai
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From India, Mumbai
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In case of death, why are you thinking about Notice Pay? Mr. Madhu T K has explained the position correctly.
Only complete the F & F properly - If a PF member, then EDLI, PF, EPS; if eligible for Gratuity, pay the same, Leave pay if any, Salary dues if any, and any other extra legal facility e.g., insurance provided by the organization in case of death, etc.
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions +91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
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Only complete the F & F properly - If a PF member, then EDLI, PF, EPS; if eligible for Gratuity, pay the same, Leave pay if any, Salary dues if any, and any other extra legal facility e.g., insurance provided by the organization in case of death, etc.
S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions +91 98310 81531
From India, New Delhi
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Dear Vmlakshminarayanan and Sanket Kashid,
The query is rightly explained by one of our esteemed contributors, Mr. Madhu T.K. You do not need to pay any notice pay in the case of the death of any employee, whether on duty or outside the premises.
Regards
From India, Delhi
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The query is rightly explained by one of our esteemed contributors, Mr. Madhu T.K. You do not need to pay any notice pay in the case of the death of any employee, whether on duty or outside the premises.
Regards
From India, Delhi
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