The death of an active worker automatically ends their employment contract, giving rise to specific financial rights for their legal heirs. It's a delicate situation worth understanding, both for the affected families and for the companies that need to handle it properly.
The ordinary final settlement also belongs to the heirs
Just as with any other termination of a contract, the outstanding items up to the date of death must be settled: salary for days worked but not yet paid, the proportional share of unused vacation days, and the proportional share of extra pay bonuses accrued up to that point. These amounts become part of the deceased worker's estate, and must be claimed according to the general rules of inheritance.
The specific compensation for death
Beyond the ordinary final settlement, the Workers' Statute recognizes specific compensation for certain family members (spouse, children, and other relatives who lived with and were financially dependent on the deceased) equivalent to 15 days' salary, regardless of the worker's seniority at the company. Many collective bargaining agreements improve on this legal minimum with higher amounts.
Social Security benefits: beyond the final settlement
Beyond what's owed directly by the company, the death of an active worker can give rise to various Social Security benefits for family members: a widow's/widower's pension for the surviving spouse or common-law partner who meets the requirements, orphan's pensions for minor children or those with a disability, and in certain cases, a death grant — a fixed amount intended to cover the immediate expenses arising from the death.
Differences if the death results from a workplace accident
If the death occurs as a result of a workplace accident or occupational illness, the benefits recognized for family members tend to be more favorable than in the case of death from common causes, with higher percentages applied to the corresponding regulatory base, in addition to possible additional liability for the company if it's determined that safety measures weren't followed.
Who must handle the process with the company
Generally, it's up to the legal heirs (or whoever is entitled under the regulations) to claim from the company the settlement of outstanding items and the corresponding compensation, providing documentation proving their status as heirs or beneficiaries (death certificate, family record book, declaration of heirs, as applicable).
A process that shouldn't be delayed
Although the emotional context makes handling administrative procedures difficult at such a time, it's worth not delaying the relevant claims too long, both with the company and with Social Security, since statutes of limitations apply to these claims.
Estimate the approximate outstanding items
Our severance pay calculator can serve as an approximate reference for the general salary and vacation items to include in the settlement, although in this specific situation it's always worth seeking advice from a labor law professional.