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The victim was identified as Vikash Kumar Yadav (32), said A K Azad, Officer-in-charge of Charhi Police Station.
Azad said Yadav was a worker of the Chintapurni Iron and Sponge Iron factory situated under the jurisdiction of Charhi police station.
Yadav accidentally fell into the burning furnace of the factory and was charred to death on Thursday night.
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The employees demanded a payment of Rs 15 lakh as compensation to the next of kin of the deceased and a job to one member of the family.
The company management has agreed to pay compensation of Rs 6.5 lakh to the next of kin of the deceased and also employment to one member of the family.
Police have registered a case in Charhi police station in this regard.