Can Employers Be Liable if an Employee Commits Suicide?

Recently, I received a call from one of my clients’ HR department, informing me that their employee had committed suicide. The employee’s dependents were blaming the company for putting undue pressure on the employee, which allegedly led to stress and depression, ultimately resulting in his death. The HR representative asked how the company should face this situation. I started thinking about whether an employer could be held responsible for an employee’s death.

After conducting research, I found that if the deceased employee’s dependents can legally prove that the employee was under work-related stress and had recorded communication with the HR team or management in writing, they may have a valid claim. If the management fails to take proper steps after receiving the complaint, the employer may be liable to pay substantial compensation for the loss of life, which could be considered a negligent act.

This situation may fall under the Corporate Manslaughter Act, a clause within Director’s & Officer’s Liability, which carries a penalty of imprisonment for up to two years, a fine, or both for the person legally liable.

So, what defines corporate manslaughter? It is a criminal offense where a business or organization is found to have caused a person’s death due to a gross breach of duty of care. According to Section 304A of the IPC, causing death by negligence is a punishable offence.

What should employers do? They should establish policies to support employees struggling with mental health issues, promote a culture of understanding, and provide help to those in need. Employers should also monitor the well-being of remote and vulnerable workers and ensure fair and transparent treatment of all employees to avoid potential links to suicidal behavior.

In conclusion, while employees are a company’s most valuable asset, employers may be held liable for their death in adverse situations. It’s essential for companies to have Workmen’s Compensation, Group Term Life, and Director’s & Officer’s Liability policies in place to handle litigation from the deceased employee’s family or government statutory bodies.