Upgrad
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Vijaykumar (Legal Offier)     03 May 2016

Payment of gratuity

Hello Experts,

The employee had submitted a change of nomination (Gratuity) letter to the employer 15 days prior to his death. He wanted to change the nomination from his wife to his father the reason being his wife deserted him after knowing about his terminal illness. In the letter, the employee clearly mentions that his wife did not return from her father's residence even after pleading her to come back home and that it was only his father who took care of him in his dying days.

 

Now the wife has made a claim for gratuity money. In the present case who is entitled to receive the payment? Should the gratuity money be paid to the wife of the employee or to his father as that was his last wish. Kindly provide and precendents if available (Sec 6 of Payment of Gratuity Act, 1972). Looking forward for your help and guidance in the matter. Thank you.

 

Regards

Vijaykumar

 



Learning

 3 Replies

Kumar Doab (FIN)     03 May 2016

The establishment can pay to the nominee as on latest record and discharge its responsibility.

The a/c has nomination.

For precedences , citations  etc entrust to an able counsel specializing in labor matters.

 

Ritesh Maity (Labour Law Advocate)     04 May 2016

Since the latest nomination for grauity says that nominee is the father, then the company can disburse the gratuity amount to the father/ nominee only. 

Howevever, the wife being a legal heir, can bring a stay order from High Court to stop such disbursment. 

From the employer's point of view, it is advisable to calculate the gratuity and pay to the nominee at the earliest, before the wife comes with claim/ stay order. 

 

Kumar Doab (FIN)     04 May 2016

Dependant parents are included in the def. of family;Sec;2


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register