Hi,
One of our employee passed away recently due to Heart Attack. He was in our service at the time of demise.
He has served for a period of seven years.
We have not taken any nomination from the employees for gratuity payment.
Now we have received letter from his wife to settle his gratuity.
Request your suggestions as to how to proceed and what are all the documents to be obtained for settling gratuity and other dues to his wife.
Regards
erv
From India, Madras
One of our employee passed away recently due to Heart Attack. He was in our service at the time of demise.
He has served for a period of seven years.
We have not taken any nomination from the employees for gratuity payment.
Now we have received letter from his wife to settle his gratuity.
Request your suggestions as to how to proceed and what are all the documents to be obtained for settling gratuity and other dues to his wife.
Regards
erv
From India, Madras
Dear
When we do not have nomination then we have to face such type of difficulty. In accordance with section 4 of the P G Act, 1972 when there is no nomination then we are to make the payment of gratuity to the legal heir(s) if the deceased. If you are satisfied that she is the only legal heir then release the payment but as Mr. Madhu have suggested you to be on safer side you can obtain an affidavit to the effect that if on later stage any dispute arises on this payment she will be responsible for results. If there is any dispute then you should demand the legal heir certificate from her.
Opinion/ comments submitted as requested.
With Regards,
R.N.Khola
From India, Delhi
363When we do not have nomination then we have to face such type of difficulty. In accordance with section 4 of the P G Act, 1972 when there is no nomination then we are to make the payment of gratuity to the legal heir(s) if the deceased. If you are satisfied that she is the only legal heir then release the payment but as Mr. Madhu have suggested you to be on safer side you can obtain an affidavit to the effect that if on later stage any dispute arises on this payment she will be responsible for results. If there is any dispute then you should demand the legal heir certificate from her.
Opinion/ comments submitted as requested.
With Regards,
R.N.Khola
From India, Delhi
Hi,
I have certain queries
1. are all companies liable to pay gratuity to employees if they have more than 10 persons employed
2. like in our organisation the company is not keeping any separate fund/ contribution in CTC which is being marked as Gratuity so if any employee leaves service after 5 yrs then can he/she still claim it
3. neither do we fill any forms like form f nor have we registered ourselves anywhere and no inspectors have ever asked us abt gratuity??
so are we missing some provedure n i have normally seen 90% of the organisations following the above.
From India, Chandigarh
I have certain queries
1. are all companies liable to pay gratuity to employees if they have more than 10 persons employed
2. like in our organisation the company is not keeping any separate fund/ contribution in CTC which is being marked as Gratuity so if any employee leaves service after 5 yrs then can he/she still claim it
3. neither do we fill any forms like form f nor have we registered ourselves anywhere and no inspectors have ever asked us abt gratuity??
so are we missing some provedure n i have normally seen 90% of the organisations following the above.
From India, Chandigarh
Hi all,
Thanks for the suggestions.
Can we take the nomination as given in Form 2 (revised) for PF nomination for settling gratuity dues of deceased employee in case of absence of nomination in Form F
Kindly give your opinion/comments
Regards
erv
From India, Madras
Thanks for the suggestions.
Can we take the nomination as given in Form 2 (revised) for PF nomination for settling gratuity dues of deceased employee in case of absence of nomination in Form F
Kindly give your opinion/comments
Regards
erv
From India, Madras
Since you have not taken nomination as prescribed under the Payment of Gratuity Act, you can pay the amount to the nominee as mentioned in form 2 of EPF. But you will be doing it at your own risk. You should consider one point that the authority under the Gratuity Act is State's Labour Department (Labour Officer/ Labour Commissioner in Central) whereas under the Employees Provident Fund it is Provident Fund Commissioner.
Neha,
Gratuity is mandatory. Whether or not provided for, you are suppose to pay it once an employee leaves after serving for at least 5 years. In case of death of employee his legal representatives should be paid gratuity even if the deceased employee did not put five years of service.
Regards,
Madhu.T.K
From India, Kannur
Neha,
Gratuity is mandatory. Whether or not provided for, you are suppose to pay it once an employee leaves after serving for at least 5 years. In case of death of employee his legal representatives should be paid gratuity even if the deceased employee did not put five years of service.
Regards,
Madhu.T.K
From India, Kannur
Sir, with due respect may i ask would it be better to ask for a Succession Certificate form Civil court in absence of Nomination form ,then release on the basis on that.
If the employer fails to make payment of gratuity within one month the concerned official can take any step which he finds appropriate besides charging interest. The delay having been caused due to his oversight of not getting nomination the impact will also be with the employer alone. As suggested by R N Khola let the employer take initiative to to make payment on the basis of any succession certificate.
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
Dear
I do not deals in civil matters even then what I have gathered so far both the certificates i.e. succession & legal certificate have separate entity. Here under this Act we are required to have legal heir certificate.The employer is bound to make the gratuity payment to the legal heir(s).
With Regards,
R.N.Khola
From India, Delhi
I do not deals in civil matters even then what I have gathered so far both the certificates i.e. succession & legal certificate have separate entity. Here under this Act we are required to have legal heir certificate.The employer is bound to make the gratuity payment to the legal heir(s).
With Regards,
R.N.Khola
From India, Delhi
Sir, But suppose their are dispute between the legal heirs,i.e the claimant then what?? Legal heirship certificate serve the purpose when the claimant is certain that there is no dispute.
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc