Hello people, I have a case where an employee expires. In his lifetime, he had married 2 women and he has named the first wife as a nominee in Form F.
Now after his death both ladies demand the payment to them. What should we do-
1. Pay the nominee as per Form F. (or)
2. Send the Gratuity to ALC/Controlling Authority.
1Now after his death both ladies demand the payment to them. What should we do-
1. Pay the nominee as per Form F. (or)
2. Send the Gratuity to ALC/Controlling Authority.
Mr Rahul, You have to pay gratuity to his first wife. Leagely also his first wife is elegible. In form F also he has mentioned his first wife as nominee. Regards, Sanjay Tiwari
From India, Mumbai
From India, Mumbai
The nominee has the exclusive right to receive the gratuity as per the Payment of Gratuity Act 1972. The employer's liability is discharged by paying the gratuity to the nominee. But the nominee doesn't have the exclusive right to appropriate the entire amount received. Any other heir has the right to claim the amount from the nominee. In this, the employer has no role to play.
Let me tell one important point, in case the employee is Hindu, the second wife has no claim but the children from that marriage will also be entitled to their share.
From India, Mumbai
Let me tell one important point, in case the employee is Hindu, the second wife has no claim but the children from that marriage will also be entitled to their share.
From India, Mumbai
@KK!HR & Sanjay Tiwari kindly refer to Gratuity Act Section 7 (4) (a) and (b) where in if there’s any dispute in the Gratuity payable, it may be sent to Controlling Authority.
In case the payment is made to the nominee, any claim made against the employer is not sustainable in the eyes of law. Yes, to avoid any further litigation against the establishment, as a fail-safe measure you can deposit the gratuity amount with the Controlling Authority and mention the facts including the nomination.
From India, Mumbai
From India, Mumbai
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc