How to avoid liability related to unpaid benefits after the death of an employee

The attorneys of our Law Firm assisted our Client in implementing appropriate procedures and correctly conducting proceedings to secure the claims of potential heirs of their deceased employee.

According to Article 63(1) §2 of the Polish Labour Code, the employee’s pecuniary rights arising from the employment relationship pass, upon the employee’s death, in equal parts to the spouse and other individuals who qualify for a survivor’s pension under the provisions of the Social Insurance Fund. Only if there are no such individuals do these rights become part of the deceased employee’s estate.

Therefore, any employer informed of an employee’s death must first carefully and correctly determine the group of individuals entitled to receive the deceased’s employment-related dues.

If persons indicated in Article 63(1) §2 of the Labour Code exist, the employer is obligated to pay them the amounts owed to the deceased employee without waiting for the probate proceedings to conclude. These amounts may be substantial, including not only the final salary, but also potential overtime pay, bonuses, or compensation for unused vacation leave.

Only in the absence of an eligible spouse or other entitled individuals do these dues become part of the inheritance estate. In that case, the employer should secure the amounts owed and call upon known heirs to confirm their status as heirs (e.g., by presenting a court decision or a notarized certificate of succession).

What if the process is delayed, the heirs are not interested, or the entitled parties are unknown?To avoid liability for damages, the employer must secure the claims of potential heirs by placing the employment-related assets into a court deposit.

Pursuant to Article 467(1) of the Polish Civil Code, apart from other statutory cases, a debtor may deposit the subject of the performance with the court if, due to circumstances beyond their control, they do not know who the creditor is or are unaware of the creditor’s residence or registered office. It is generally accepted that a lack of information about the employee’s potential heirs, or lack of contact with them, constitutes a legal obstacle as described in this provision, which entitles the employer to deposit the payment in court.

In our Client’s case, our attorneys prepared an application to the competent court requesting permission to deposit the deceased employee’s dues into the court deposit. Thanks to a well-prepared and substantively justified application, the court granted permission, thereby protecting the employer from future legal consequences and potential claims from the deceased employee’s heirs.