There are times that the payroll department would need to terminate an employee due to their untimely death. There are numerous administrative tasks and checklists which an HR Department can ensure are in place to have an uncomplicated process. The HR Manager or Department will be the face of the company in these times and compassion and professionalism is the key to handling the situation as speedily as possible. Find out who is the main contact person and liaise with only them to avoid family feuds or enquiries. HR to ensure that flowers and condolences to the family are handled professionally and the untimely passing is communicated to staff. Any personal effects are to be boxed and handed to the deceased family member. Should the cause of death happen in the workplace, counselling for the staff is highly recommended.
- Final salary – in most cases, the deceased employee would have a pro-rata or full month salary owing to them. The payment may be too late to be stopped at payroll but the salary or wages should be stopped if possible. The final salary and any benefits such as leave balances, commission, bonuses etc. should be paid to the estate and not to the surviving spouse or other beneficiaries as it may be paid to the wrong person.
- Continuation and clients – Every company should have a continuation plan in place for staff who leave, are disabled or deceased. The company needs to ensure continuity of the job that the deceased employee filled so that loss of production is managed. Clients and colleagues need to be informed but the situation and communication should be managed professionally by Management especially to clients.
- Beneficiary Nomination Forms – Should the company have a Group Life / Disability / Funeral scheme in place for employees, all staff must have a signed beneficiary nomination form. The HR Department must check the following at least annually:
- Request staff to check their submission annually and submit new forms should there be changes the employee would like to make.
- Any changes in marital status, dependents, etc, the employee must be sent a new beneficiary nomination form should they wish to make changes.
- HR to ensure the form is completed fully, signed, dated and have a witness signature. If the form is not signed and/or dated, the insurance company will reject the form.
- In the event that the company changes the insurer, new beneficiary nominations forms must be completed in full by the employee for the new insurer. Previous beneficiary forms will not be accepted by the new company.
- HR to request the forms from the insurer that they would accept.
- HR to keep the original copy on file in the event of a claim and submit to the insurer and HR to give the employee a copy for their reference.
- UIF – The family can claim UIF for a deceased member via the UIF department within a 6 month period only. HR to assist by submitting the following to the family as they would need to apply to the UIF department personally.
- Husband/wife of the deceased employee (UIF126 form to be completed), Child of the deceased employee (UIF127 form). They will also provide a UF128 which needs to be completed by the deceased’s last employer and submitted. These forms are obtained at the Department of Labour. The payment calculated by the UIF is made in one lump sum payment.
- The person claiming must take the following documents with:
- Their ID
- Copies of the deceased’s last six payslips – HR to provide
- UI19 form (stating deceased) – HR to provide
- Certified copy of the death certificate
- Certified copy of the marriage certificate or certified copy of the Child’s birth certificate
- Proof of guardianship if a minor (dependent claiming)
- Proof that the child is a learner and dependent on the deceased (if Child only)
- A service certificate from the employer – HR to provide
- Proof of the claimant’s banking details
- Claim forms for GLA/PHI – the HR Department must assist the employee’s dependents by gathering the necessary information from them (ID, death certificate, etc.) and submit this to the insurer as soon as possible. HR to follow up and assist with any outstanding details or information.
- Retirement Annuity / Provident Fund / Pension Fund – HR will assist the family with the relevant forms for the funds if these have been acquired via the company. A beneficiary nomination form from the insurer must also be in place for these funds.
- Workmen’s comp – If the employee was deceased through a company accident, the HR department needs to assist with the various forms and information required by Workmen’s Compensation.
- Medical aid – Should the employee be on a medical aid through the company, the medical aid is to be informed of the death and liaise with payroll as there may be a final deduction which would need to be done on the salary. Should the employee have dependents on the medical aid, a discussion with the family needs to be made to move them over or possibly cover them for a month until this can be sorted out.
- Company property – the deceased employee may have had company property which will need to be returned such as a laptop, cell phone, credit card or company car. Arrangements must be made to collect these from the family as soon as possible.
TruPay Payroll Services makes use of a very capable service provider that can assist with setting up Trust Funds, Wills and Deceased Estates as this is not part of the HR Function. Having a trusted service provider on hand can be useful should the need arise for the family of the deceased.