bhargava1
1

dear seniors ,
hello
i am starter in the field of hr and is dealing with compliance and retiral benefits ,, and have come across a strange case plz guide me ,,
Q: a claim has occured after the death of an employee for gratuity bt the problem is that there are 3 wives and all want settlement ,, now as an hr what are my obligations, i am planning to deposit the gratuity amount to the asst labour comm, what are the forms required and other formalities from my side ,, like forms or notices even the mode of payment etc ,,thanking you
regards

From India, New Delhi
nivedita.jambhekar
4

Dear,
I think you should consider only the lawfully married wife here, more over has'nt the person in question nominated someone from the family?
If the 1st wife is lawfully married and rest are not then you will have to consider it accordingly.

From India, Pune
harshal16
23

Dear,
You need to see the nomination form and whoever is a nominee you may proceed with that person.
Secondly you can check the family declaration given by the employee on joining or while availing LTA.
Hope this helps

From India, Asansol
Madhu.T.K
4249

It is good if you deposit the amount of gratuity with Labour Department and then direct the legal representatives to collect the amount from the department. Regards, Madhu.T.K
From India, Kannur
Arun Kumar Maitra
58

In the absence of nomination, retirement dues should be paid as per the Succession Certificate.Since their is a dispute in the matter, you should immediately deposit the amount with the Controlling Authority.Otherwise penal interest will be payable.Detailed procedure for deposit will be available in the Payment of Gratuity Act to be read with the Rules thereof.
In case , it has not yet been deposited , payment should be made to the proper person subject to production of the following documents:
(i).Death Certificate.
(ii).Affidavit that she is the legally married wife of the deceased.
(iii).Indemnity Bond undetaking to indemnify the Company ,in the event of any wrongful payment to her.
(iv).Succesion Cerificate,if necessary.
(v).Identity Card as recognised by the Govt.
Certified true copy of each of the above documents should be obtained from the receipent for Company's record.

From India, Delhi
aamir1985
Dear,
My suggestion to your query is as follows:
If employee eligible for gratuity then you must check his personal records, check his family details see who is the actual wife as per your record if claiming many then ask them for marriage certificate along with death certificate, their ration card, voter ID card and then you meet to your factories labour inspector and also remember all communication must be in writing from both parties no verbal talks which always help us to fight and skip from employees claims.
Also don\'t get irritate communicate with all of them very calmly.
I hope my advise will be very much helpful to you as per my experience.

From India, Vapi
Sri Sai
3

Sir,
The Controlling Authority under the Payment of Gratuity Act,1975 is the local Labour Court and not the Labour office as suggested by one our learned friends.Therefore approach the Hon.Labour Court,deposit the amount of gratuity payable to the deceased employee ,in the court.The court will then send summons to all concerned and decide the claim suitably.Your job will be only to submit papers as called from the court.Apart from this you will also not be required to pay interest on the amount for delayed payment.
Best of luck
9322742801

From India, Pune
Madhu.T.K
4249

Thanks to Sri Sai for the new input that Labour Court is the appropriate authority under the Maternity Benefit Act. But I have not come across to see Labour Court as the appropriate authority under any Act. Therefore, if you have any notification stating that Labour Court is the appropriate under the Maternity Benefit Act, please send us so that we can correct our interpretation about the Act. As far as many of us know, appropriate authority under Maternity Benefit Act, in respect of all establishments expect mines is state government (means the officer as notified by the state Govt.) and in respect of Mines it is Central Govt. Please correct if I am wrong.
Madhu.T.K

From India, Kannur
Arun Kumar Maitra
58

Nominee holds the money in trust for the benefit of the beneficiaries until the payment is distributed to them as per their entitlements.In the event of death of the employee, only the person mentioned in the will becomes entitled to receive the payment and in the absence of the same, as per the Succession Certificate issued by the court.
Please follow the above procedure and if necesary ,consult a labour law expert in the matter.You are supposed to release the payment within 30 days from the date of termination of the contract of the concerned employee,subject to his entitlement and also submission of the prescribed form duly filled in and signed by him.In case of any disputes in the matter, payment should be deposited with the Controlling Authority.Deatailed procedure for depost of the same are laid down in the Payment of Gratuity Act to be read with the rules thereof.

From India, Delhi
Mehrunisa Basima
66

Dear Bhargava1,

Section 5 of the payment of Gratuity Act

4. PAYMENT OF GRATUITY.-



(1) Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years, - (a) on his superannuation, or



(b) on his retirement or resignation, or



(c) on his death or disablement due to accident or disease : Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement :



Provided further that in the case of death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to his heirs, and where any such nominees or heirs is a minor, the share of such minor, shall be deposited with the controlling authority who shall invest the same for the benefit of such minor in such bank or other financial institution, as may be prescribed, until such minor attains majority.



So has an HR you have to do is that you have to release the amount to the person who has been stated by the deceased in his nomination application as the nominee to receive the gratuity Amount. If the deceased has nominated a person then you have no legal obligation to decide who is the achul legal heirs and it has to be given to the actual nominee nominated by the deceased if the nominee is a family member. Even if any of the legal heirs has approached you and if they are not the nominee then you have no legal right or obligation to give the amount to that legal heirs if the deceased has nominated a person as a nominee if he is a family member.

If there is no nominee then only you have to deposit the amount before the controlling authority and let the controlling authority decide the issue.

NOTE: Another important point to be noted is that the nominee is not the actual owner of the gratuity amount of the deceased. He is only a custodian of the amount of money for the time being. Nominees duty is to distribute the gratuity amount to the legal heirs. If the nominee has not given the amount to the legal heirs, then the legal heirs has to approch the civil court and controlling authority has no jurisdiction to decide the issue.

From India, Kochi
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