Request to guide on Gratuity of an employee, who has died during employment without a nomination and having 2 legal heirs. How is the Gratuity to be paid?
From India, Salem
Dear Swaminathan,

You should deposit the amount forth with with the Controlling Authority under the PG Act,1072 for the area within which your establishment is located under intimation to the claimants.

From India, Salem
KK!HR
1534

Payment of Gratuity Act 1972 is a complete code in itself and the Controlling Authority can determine the heirs and decide the payment to be made to each. The employer's liability is over once the amount is deposited with the authority.
From India, Mumbai
Dear All,

I have one case related to death of employee

The Company : Manufacturing Unit / Based in Uttar Pradesh, India
Employee Employment Nature : Seasonal ( Confirmed) / On Roll
Entitled for Gratuity
FNF Made and Paid to Nominee immediately
Gratuity Payable through LIC

His Spouse was nominee but after six month of death of husband , she again remarried and left the house.
late employee's father and mother are only dependable if any benefit be given.
Pension and EDLI Benefit though PF Authorities has not been processed due to no one turned back.

The Gratuity amount now received by the company but employee's father has asked that claim by submitting affidavit that he and his wife are claimant and if the amount be given to his nominee who has already remarried , she will not give any thing and the as a dependent they are much needy of money.

Seniors Opinion are urgently required

From India
Dear Raj,

Remarriage of a widow doesn't extinguish her right to receive the terminal benefits arising out of her deceased former husband is the ratio decidendi set down by the higher judiciary in various case laws. You can browse the internet and find a suitable one to that of gratuity.

Regarding the claim of the surviving parents, it cannot be simply brushed aside based solely on the nomination made by the employee earlier. Certain other considerations like age of the parents, their socio-economic status, financial support from other surviving children would go into consideration before deciding the question whether they are entitled to a share in the gratuity payable to the deceased.

Therefore, it requires a judicial decision after holding an enquiry by the Controlling Authority under the PG Act,1972. Better, arrange to deposit the amount with the CA with a request for disbursement after an enquiry in this regard.

From India, Salem
In this case you do the following on the prevailing conditions-

1. If there's dispute between the heirs- Send the Gratuity to Controlling Authority/ALC.

2. If there's No dispute- ask the heirs to bring an indemnity bond signed by 2 permanent employees of your company and pay the heirs the Gratuity amount.


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