Upon the death of an employer, their heirs or spouse are obligated to settle the situation of the employees hired by the employer. The cause of death may be an accident, but it is important to note that many elderly individuals also resort to this type of service in the case of end-of-life care. The death of an employer automatically terminates the employment contract of the employee. However, several steps must be followed by the heirs, such as calculating the notice period and paying the final settlement.
Focus on the steps to be taken by the heirs after the employer’s death.
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The heirs’ compliance with the procedure
Upon the employer’s death, their heirs must take into account several formalities. After preparing the funeral of the loved one, with a specialist like funerarium Huy, the heirs must follow a procedure.
As a reminder, the death of the employer automatically stops the employment contract of their employees. Therefore, this employment relationship does not continue with the heirs. The role of the heirs is to inform the employees of the employer’s death, and consequently, the termination of the employment contract. To do this, it is ideal to draft a registered letter with acknowledgment of receipt.
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The calculation of the notice period owed by the heirs
Due to the employer’s death, the employee does not serve any notice period. Thus, after the employer’s death, they should never return to work. Consequently, they receive compensation equivalent to the salary earned during the notice period. For your information, the notice period begins from the date of the employer’s death.
As a reminder, the duration of the notice period depends on the employee’s length of service. It is one week for less than 6 months of service, and one month if the length of service is between 6 to 24 months. For a length of service exceeding 2 years, the notice period is two months.
The employee’s final settlement
Due to the termination of the contract, the employee receives several types of compensation, varying according to their length of service. First, they will receive their last salary, calculated from the 1st day of the month leading up to the day before the employer’s death. They will also receive a compensatory allowance for notice and paid leave. The latter corresponds to the payment for unused leave taken by the employee during their employment. If the employee’s length of service exceeds 8 months, they are also entitled to severance pay.
The end-of-contract documents
As an heir, you must also provide the employee with end-of-contract documents. Generally, the end-of-contract documents include three main supporting documents. These documents are the work certificate, the receipt for the final settlement, and the employment certificate. It is important to emphasize that these documents are essential in all situations of contract termination: termination of the trial period, end of fixed-term contracts, retirement, dismissal, death of the employer, etc.