Final Settlement Of Employee After Death , Format letter

hello community ,

i hope everyone is fine and working from the safe environment !

i am mentioning a case that happened in our corporate office & need your advice on the same. One of our staff expired due to his liver damaged ,22/11/20 . he was on leaves when he expired, now his full & final settlement needs is to be done. since he was working for a long time with the company so company has paid good amount in his treatment & also other types of supports are provided to him. In his F & F the date of his release last day of working with us now i would like to have the FNFL format in this case and what will he be entitled for some short of death benefit? Since I have never dealt any death case kindly share your views with me on the same. please revert on the matter with your valuable advice.

Regards ,
Vineeta Solanki

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Hi Vineeta,

In case of the death of an employee, the last working day, in this case, will be 22-Nov -20 as the employee was on informed leave. A few steps that you can follow to complete the exit process is as below:

  • Manager to intimate HR and HR will initiate all access disablement
    • HR to connect with the family and collect the death certificate of the employee
    • Family member/nominee to submit the below documents
    • A death claim statement accompanying a copy of death certification
    • A letter stating the legal heir or nominee (letter from the spouse or parent in affidavit form claiming themselves as the legal heir of the deceased employee to claim the benefits. If the deceased employee has a spouse and parents both, whosoever is claiming shall produce a no objection certification); if the claimant states there is no other claimant in the family, there shall be a declaration letter to that effect in an affidavit
    • ID proof and address proof of the nominee
    • PF forms (Form 20, Form 10D) (To be filled by nominee)
    • Gratuity (Form 1) (To be filled by nominee)
    • Nominee to return the company assets
    • Instant exit clearances to be initiated once documents are received
    • Final settlement to be processed to the Nominee within 45 days or the days mentioned as per your company policy

Hope this helps.

4 Likes

Dear @vineeta

Posting this on behalf of our Expert “Vinod”

In the unfortunate event of death of an employee while in service, the company is obligated to pay the following:

  1. Salary upto the date of employee’s death as if he was in service.

  2. Any overtime, if performed earlier and due to be paid

  3. Leave encashment of any unavailed and unadjusted paid leaves

  4. Gratuity payment: (a) for above 5 years of service, pay for actual number of years of service (b) if service is below 5 years, then pay as if the employee completed 5 years © if gratuity scheme was covered under a gratuity insurance, then payment upto retirement age.

  5. Payment of Bonus / Incentives

  6. Check for any unprocessed reimbursement / allowance claims / expense claims, including with Finance team.

  7. Death benefit under any Group Life / Medical coverage

  8. Helping with settlement of PF/ EPS accumulation

  9. Issue provisional tax certificate, including amounts from final settlement

  10. Issuing of service letter, payslips, relieving letter, etc as a part of exit process

  11. Any additional help that the organisation can provide to the fullest extent possible

Trust this helps.

4 Likes

thanks @ Liz , much appreciated your help , definitely much helpful to take this further !! :slight_smile:

2 Likes

dear Vinod @ dear Dinesh Many thanks for your help I ’ will defiantly complete the above all check point , one more request in this case if your have any relieving letter format , i would request you please share it with me .

thanks for your support !

Regards ,
vineeta

3 Likes

Sure @vineeta

If you login to greytHR! Within the app - under Employee --> Setup–> Letter Template --> Template gallery you have the preview, and ready to use format.

Hope this helps :slight_smile:
Screenshot 2020-11-24 at 11.28.51 AM

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