I. Occupational Fatalities: a Related Case
If an employee dies from an occupational accident, the employer must follow the procedures required by law and take actions deemed appropriate for the victim’s family. When occupational fatalities occur at the workplace, the police will immediately begin investigating, while the company shall be required to begin discussing compensation and other necessary issues with the family so that funeral services can be conducted without delay. In relation to the above issues, I would like to look at one occupational fatality and the resulting actions taken by the employer, as a way to explain measures that companies can prepare in advance of any such tragedy.
Company A (hereinafter referred to as “the Company”) operates a warehouse at Suwon airfield. At 8:20 in the morning on September 6, 2013, Employee A (hereinafter referred to as “the Employee”) was in a warehouse guiding a forklift carrying air conditioning equipment. The air conditioner slipped off the left side of the forks and fell on the Employee, which caused serious injury. He was taken to Aju University Hospital in Suwon, where he died during emergency treatment. At this news, the Company called the police immediately to report the death. Once confirming the Employee had died, the police visited the accident site to begin their investigation. The Company called this labor attorney (who provides regular legal advisory services) in the afternoon of September 6, and requested answers to three urgent questions related to the procedures they were to follow in handling this accident.
The first question was “What recommendations do you have regarding overall handling of this occupational fatality, and the surviving family?” The second question was “While the Company handles this case through Industrial Accident Compensation Insurance, do we have other legal liabilities like civil claims or criminal charges?” The third question was “What process do we need to follow to have Industrial Accident Compensation Insurance cover this case?” [For reference, the Employee was a senior citizen, 72 years of age, with a monthly average wage of ₩1,719,340, and a daily ordinary wage of ₩56,065]. This article will discuss the responses given to the Company’s questions.

II. Handling Occupational Fatalities & the Surviving Family
First of all, as occupational fatalities are regarded as serious occupational accidents, the company shall immediately report it to the district Labor Office. The on-site manager shall begin discussions with the surviving family for funeral arrangements while the personnel team shall prepare to deal with the related corporate responsibilities. The following information details the major issues companies who face this tragedy must deal with: reporting a serious occupational accident, handling the surviving family, methods for compensating surviving family and calculating those industrial accident compensation benefits, and civil compensation for damages.

1. Immediate reporting of a serious occupational accident
In the case we are looking at, the Company shall immediately report the fatality to the police and the district Labor Office as this is a serious industrial accident. Should a company fail to report within 24 hours, a fine of up to ₩10 million will be levied.
□ Reporting Incidence of Industrial Accidents (Article 10 of the Occupational Safety and Health Act: a fine up to ₩10 million will be levied for failure to report.)
○ When an occupational death, injury or illness requiring medical treatment for four days or longer occurs, the employer shall report to the district Labor Office through an Occupational Accident Report Form within one month: Provided, that this shall not apply if medical care benefits, survivors' benefits, or pensions for surviving family members have been applied for during that same period.
○ When an occupational accident falls under one of the following serious occupational accidents, the report shall be made immediately:
1. When the occupational accident results in the death of one or more employees; 2. When the occupational injuries of two or more requiring medical treatment for 3 months or longer has occurred at the same time; and 3. When the occupational injuries or illness of ten or more employees occur at the same time.

2. Handling the surviving family
The surviving family requested three items in a text message as required before conducting funeral services. The first was confirmation by the Company that the accident would be covered by Industrial Accident Compensation Insurance. Second was an agreement on the Company’s responsibility in addition to industrial accident compensation and its related schedule. Third was an advance payment by the Company for medical expenses and funeral service fees. The Company responded in the following manner, and a three-day funeral service was held on September 8th (two days after the accident) on the basis of this response.
The company offers its response to the following items regarding your request by text message:
1. Coverage by Industrial Accident Compensation Insurance: The company promises to handle this case through Industrial Accident Compensation Insurance, and will take care of it as soon as possible upon receipt of the necessary information from you.
2. The company’s responsibility besides industrial accident compensation and its related schedule: If the company must be responsible for something more, we will accept that responsibility. We promise to meet and consult with the surviving family along with the company’s appointed labor attorney and the surviving family’s representative (or the surviving family’s appointed labor attorney) on the date that the surviving family schedules.
3. Advance payment for medical expenses and funeral service fees: We are afraid that we are unable to pay the expenses in advance due to the fact that the fatality occurred suddenly and the funeral is scheduled for this weekend. Please cover the costs first and then we will reimburse you as quickly as possible. If the surviving family wishes, we will provide reimbursement for the medical expenses and funeral services on Monday, September 9th, the earliest time available for bank transactions.

3. Calculating industrial accident compensation (survivors’ pension and funeral expenses)
Surviving family members can request survivors’ benefits and compensation for funeral expenses in accordance with the Industrial Accident Compensation Insurance Act, so it is desired for companies to calculate the benefits in advance. Compensation for occupational fatalities includes expenses for medical treatment and funeral services, and survivors’ benefits. Lump sum payments for survivor’s benefits in this case equaled ₩72,884,500, and for funeral expenses ₩9,300,770, for a total of ₩82,185,270. The details for compensation through Industrial Accident Compensation Insurance are as follows:
○ Survivor’s benefits: 1,300 days’ average wages;
Options for receipt of payment: 1) 100% Pension or 2) half pension and half lump sum. In this case, the total lump sum was calculated as ₩56,065 x 1,300 days = ₩72,884,500.
(1) 100% pension (the Employee’s daily average wage was ₩56,065)
① Basic pension: ₩56,065 x 365 days x 0.47 = ₩9,617,950 per year
② Addition for Basic pension: ₩56,065 x 365 days x 0.05 x 1 = ₩1,023,186
(Up to four surviving family members can be added for additional basic pension: The victim’s directly dependant family members – spouse, parents aged 60 or older, and children aged 19 or younger)
If the 100% pension is chosen, the total sum of ① and ② is ₩10,641,136. As this amount is