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k.sankarasubramanian@tvs-
Respected Members


I request for your views on the following case:
  1. 26 year old male Employee joined our company in Sep 07
  2. On joining, he gave all nominee declarations in favour of his father
  3. In Mar 08, he got married (arranged marriage)
  4. After marriage he did not file any fresh nominee declarations
  5. We have on record his marriage registration certifcate proof
  6. In July 2008, he died in Road accident on the spot
  7. Now his settlements / terminal benefits have all been ready for (a) Gratuity, (b) EDLI (c) Personal accident Insurance (d) payroll including leave salary, prorata pay etc, (e) PF & (f) FPF
  8. On copassionate grounds, his wife has been employed in our group company. So no company compensation is paid
  9. Widowed wife (now employed with us) came to us our office staking claim for the entire terminal benefits because (a) her parents paid huge dowry + expenses on marriage and now on huge debts.. and more importantly (b) her father=in-law demands that she shall marry her deceased husband's younger brother and to retain all terminal benefits within the family.. but she is not willing for it.
  10. Since there is no will, Taluk Office have given aa general Legal heir cvertificate citing ther three persons as legal heirs with equal share (i,e, Father-in-law, mother-in-law & widowed wife)
  11. So her father-in-law & mother=in=law met our company demanding now that 2/3rds share of the terminal benefits and that the widowed wife shall be paid only 1/3rd share only
How to pay each of these terminal benefits above i.e .. ready for ya) Gratuity, (b) EDLI (c) Personal accident Insuran
ce (d) payroll including leave salary, prorata pay etc, (e) PF & (f) FPF payments

We cannot fully pay as per legal heir certificate because the deceased employee;'s wife is making continuous demand for 100% share to her

Pl advide urgently
K Sankarasubramanian/9840093176

From India, Madras
S.Chandrasekar
39

Dear Sankar.

The case is not at all complex.

1) Even if the deceased has not submitted the Nominee name change, doesn't matter. The Marriage Registration proof will do. So she becomes the beneficiary of PF, EDLI, Insurance etc. His wife becoming the undeclared Nominee overrides all the previous nominee declarations given by him. Marriage Reg certificate is ok.

2) We cannot take the dowry or 'seer varisai' into account, as they are private matters. So In-laws or parents have no need to explain them to you. The claim is between you and the employee (nominee) only.

3) Remarrying somone is her choice and even if she marries husband's brother, we cannot infringe. But the benefits will reach her in full.

4) You can equate the EL, SL and other leave pays that can be encashed. Gratuity can be paid in the event of death or diablement.

5) If he possess a credit card or ATM-Debit card, you can help her in getting accident compensation upto 2 lakhs. The Credit card has this coverage in the fee. coverage varies from bank to bank.

6) Your company has given job to her on compassionate grounds. Even then the full/final settlement available with you has to go to her in full.

Please make it a point to get a new nomination letter from any employee (Male/ Female) who gets married after joining the company. Strictly speaking your HR department should have demanded that. Anyway henceforth you may follow this procedure.

Definitely take the nomination decalration from his wife who is going to give a new nominee. If possible, can you mail me the settlement sheet worked out by you for her? Let me have a look into it.

Contact me at [IMG]https://www.citehr.com/misc.php?do=email_dev&email=Y2hhbmRydXNlbHZhQHlhaG 9vLmNvbQ==[/IMG] incase you have doubts.

Regards,

Chandru
Manager-HR
Chennai

From India, Madras
ks_murthy
4

Dear Sankarasubramanian,
As I can see from data presented by you, the employee completed 10 months of service. He filed nominations in favour of his father, at the time of joining, which is legitimate.
He could not revise nominations before his death in a road accident. Normally, the employer requires a "Succession Certificate" which is issued by Revenus authorities after due process of calling objections etc.
As regards, settlement of benefits, we need to understand the method from each act / rules. Regarding gratuity, the employer need to deposit the gratuity liability within one month with the "Controlling officer" in case of a dispute. the local DLC would in all probability be the controlling officer. They would resolve the dispute in terms of the applicable law and release the payment to the rightful claiment.See section 7(4) of payment of gratuity act 1972 which id enclosed.

From India, Changanacheri
Attached Files (Download Requires Membership)
File Type: doc THE PAYMENT OF GRATUITY ACT 1972.doc (64.5 KB, 1711 views)

mukesh_2006c3
8

Dear Chandru,
Both suggestion is well described and helpful, but is there any provision wherin all previous nomination override by the fact that deceased get married and could not change nomination, According to which law it is permissible? Is it succesion act, or individually act define nomination.

From India, Pune
S.Chandrasekar
39

Dear Mukesh,

In all government organisations this process is followed.

In India, owing to the non-prevalence in the name change for nomination soon after marriage(legally), this rider option is automatically made in to effect. If the employee is unmarried, his settlement goes to his decalred nominee (father/mother/ brother etc) or any legal heir in succession by default.

That is the reason why Marriage Registration is mandatory. This alone can help the spouse to get the benefits without trouble. In the absence of Marriage Registration, a lady cannot easily establish legal power of a nominee of the deceased. Though Wedding photos or video will do good; legal certification is a must.

Just imagine what would happen if the husband dies without redifining the nomination after marriage? This the reason why HR has to insist for Marriage Reg Cert, and also Fresh Nomination from the man after marriage. So the process followed in government org is absolutely right.

As per the Nomination and Labour Welfare Laws, “it is pertinent to note that while an employee has family, nomination in favour of an outsider (including Mother, Sister and Brother) is void. The rightful claimants to the sum under a policy or scheme or the share in the property as the case may, are the LEGAL HEIRS OF THE DECEASED, AND NOT THE NOMINEES."

Hope this satisfies your query.

Regards,
Chandru

From India, Madras
Kalijanni
49

Plase let me know that any worker daid while on service, he/she heirs are eligible for gratuity on service year or whole service period
EX: Date of Joining of Worker 01.07.2001
Expaired on 30.06.2010

His legal heirs are eligible for ten year gratuity or

From India, Guntur
Kalijanni
49

Plase let me know that any worker daid while on service, he/she heirs are eligible for gratuity on service year or whole service period
EX:
Date of Birth 01.07.1966
Date of Joining of Worker 01.07.1990
Expaired on 30.06.2010
Date of Rtd. 30.06.2024
His legal heirs are eligible for ten year gratuity or eligible for 34 Years
Pls clarify

From India, Guntur
Anonymous
Sir,
The case with my sister with different points
1) she is a employer and her husband not changed his mother name after marriage but he updated the records that he got marriage on so on date
2)his parents are doing bussiness like kiran shop and living with they first son now they are saying that they first son will not look after them and they are asking 50% of share and they taken the insurance amount as the nominee is mother. My sister had child of 3 months pls give her a right decesion to her future

From India, Chennai
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