Dear All,
One of our employee passed away and we are not payable gratuity amount to him. We have not collected Nomination form from him and now his wife and his parents are claiming the gratuity amount. In that case who will get the gratuity amount. It is understood from the parents that the deceased wife got married. In that case is she liable to get gratuity amount.
Regards
Hema
From India, Mumbai
One of our employee passed away and we are not payable gratuity amount to him. We have not collected Nomination form from him and now his wife and his parents are claiming the gratuity amount. In that case who will get the gratuity amount. It is understood from the parents that the deceased wife got married. In that case is she liable to get gratuity amount.
Regards
Hema
From India, Mumbai
Dear Ms.Hema
When the deceased employee has not made any nomination you deposit the gratuity amount accepted by you to be payable with the Controlling Authority under the Payment of Gratuity Act, having jurisdiction over the area in which your company is situate. Both the Central Government and the State Government have notified Controlling Authorities under the Payment of Gratuity Act. So pls. check which is the appropriate Government for your company. Is it the Central Government or the State Government and then deposit the gratuity amount with the correct Controlling Authority. His receipt for the amount deposited with him will discharge your liability to pay gratuity to the extent of the deposit made. However, the heirs of the deceased employee may claim that an amount more than what has been deposited by you is due from you. In which case you should be ready to meet their claim.
With regards
From India, Madras
169When the deceased employee has not made any nomination you deposit the gratuity amount accepted by you to be payable with the Controlling Authority under the Payment of Gratuity Act, having jurisdiction over the area in which your company is situate. Both the Central Government and the State Government have notified Controlling Authorities under the Payment of Gratuity Act. So pls. check which is the appropriate Government for your company. Is it the Central Government or the State Government and then deposit the gratuity amount with the correct Controlling Authority. His receipt for the amount deposited with him will discharge your liability to pay gratuity to the extent of the deposit made. However, the heirs of the deceased employee may claim that an amount more than what has been deposited by you is due from you. In which case you should be ready to meet their claim.
With regards
From India, Madras
Dear Mr. V Harikrishnan,
With respect to the subject query, I also would like to know further, the following:
1) Since widow of the deceased remarried, would she remain a dependent of the deceased and liable to get widow benefits?
2) In case he had kids and are being taken care of by their mother (even after remarriage), kids alone be the heirs? and the mother too?
3) If kids of the deceased are taken care of by his parents, will the kids alone be the heirs and deceased's parents too?
4) If deceased had no kid, then remarried wife or parents are considered as dependent?
Suresh
From India, Pune
With respect to the subject query, I also would like to know further, the following:
1) Since widow of the deceased remarried, would she remain a dependent of the deceased and liable to get widow benefits?
2) In case he had kids and are being taken care of by their mother (even after remarriage), kids alone be the heirs? and the mother too?
3) If kids of the deceased are taken care of by his parents, will the kids alone be the heirs and deceased's parents too?
4) If deceased had no kid, then remarried wife or parents are considered as dependent?
Suresh
From India, Pune
Dear Mr.Suresh
The amount of gratuity payable to a deceased employee is his property. Therefore the law of succession applicable to the deceased employee which depends on his religion will decide the questions raised by you. It is not obligatory for the employer to identify the legal heirs of the deceased employee. If he has any doubt as to the person to whom the gratuity of the deceased employee should be disbursed, then he can safely disburse it to the nominee of the deceased employee. Such disbursement will discharge the liabilities of the employer. According to decisions of Courts, the nominee cannot take the entire amount of gratuity disbursed to him. He takes it on behalf of the other legal heirs of the deceased employee and to share it with the other legal heirs according to law. As the question who are the legal heirs of the deceased employee, depends as pointed out earlier, on the religion of the deceased employee another safe way the employer could handle this situation is to deposit the amount with the Controlling Authority under the Payment of Gratuity Act. Though according to section 7(4)(a) of the Payment of Gratuity Act, the Controlling Authority can decide as to who is the person entitled to receive the gratuity, usually the Controlling Authorities require the applicant(s) before them to produce a succession certificate issued by a court of competent jurisdiction. I repeat that your questions can be answered only based on the law of succession applicable to the deceased employee.
With regards
From India, Madras
The amount of gratuity payable to a deceased employee is his property. Therefore the law of succession applicable to the deceased employee which depends on his religion will decide the questions raised by you. It is not obligatory for the employer to identify the legal heirs of the deceased employee. If he has any doubt as to the person to whom the gratuity of the deceased employee should be disbursed, then he can safely disburse it to the nominee of the deceased employee. Such disbursement will discharge the liabilities of the employer. According to decisions of Courts, the nominee cannot take the entire amount of gratuity disbursed to him. He takes it on behalf of the other legal heirs of the deceased employee and to share it with the other legal heirs according to law. As the question who are the legal heirs of the deceased employee, depends as pointed out earlier, on the religion of the deceased employee another safe way the employer could handle this situation is to deposit the amount with the Controlling Authority under the Payment of Gratuity Act. Though according to section 7(4)(a) of the Payment of Gratuity Act, the Controlling Authority can decide as to who is the person entitled to receive the gratuity, usually the Controlling Authorities require the applicant(s) before them to produce a succession certificate issued by a court of competent jurisdiction. I repeat that your questions can be answered only based on the law of succession applicable to the deceased employee.
With regards
From India, Madras
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc