Gratuity
M M Pandey
(Querist) 02 August 2012
This query is : Resolved
Dear Sir,
Request you to please clarify the following:-
An employee while in his service time nominated his mother to get 100% gratuity amount although he was married having children also, did not change the nomination.
After putting in more than 25 years of services with the concerned Company he expired.
What would be the right course of action of the Company in making payment of gratuity amount ? Whether the entire due amount should be paid to the mother when wife is alive with children of deceased ?
Regards,
M M Pandey
Isaac Gabriel
(Expert) 03 August 2012
Legal heir certificate to be produced for claiming the Gratuity,of which mother would be one among them.Though the enmployee wanted the entire amount to be disbursed to the mother as per nomination while he was alive,the situation changes after his death, since the family baground and the rights of the legal heirs needs to be looked into.
M M Pandey
(Querist) 03 August 2012
Thanks Sir,
In connection with this kindly clarify one more point.
Keeping in view Sec.7 of the Payment of Gratuity Act, 1972 will it be a right action to deposit the entire gratuity amount with the Controlling Authorities for their verification of legal heir of the concerned employee and make payment, Instead of asking the claiment to produce legal heir certificate ?
Regards,
M M Pandey
Guest
(Expert) 03 August 2012
Mr. Pandey,
Why you want to complicate the issue. The company cannot refuse payment to the nominee unless stayed by the court. The company is obliged to pay the amount of gratuity to the nominee only, if not disputed.
However, if dispute has come to light, you may deposit the amount with the controlling authority so that the case may be decided by him only. You need not bother about hiership certificate, if nomination has not already been changed by the employee during her life time.
c.p.s. ramachary
(Expert) 03 August 2012
Nominee is extended hand of legal heirs and is answerable to them. Mother of the deceased is also one of the legal heirs.No legal heir certificate is required.
Guest
(Expert) 04 August 2012
Since the deceased employee has nominated her mother to receive the amount due to him on account of gratuity after termination of his contract in case of his death,she will receive it.However, she alone cannot fully claim it unless there is a will.In the absence of the will she will merely hold it in trust for the benficiaries and the amount will subsequently be shared by the members of his family as per the succession certificate.
M M Pandey
(Querist) 06 August 2012
Thank you Sirs,
I think I have got a right direction to take appropriate action in such cases.
Regards,
RAJU O.F.,
(Expert) 06 August 2012
If the nominee mother is alive and if the said nomination was not later changed by the employee, the gratuity will be paid only to the said mother.
