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Prakash   10 November 2018

Nominee for PF

Hi, one of our employee expired one month back due to cardiac arrest. Got married one month back. During his DOJ his nominee was his father. Now, since he is married, wife is demanding 100% compensation from company. His parents are very poor. So, they are also expecting some compensation from the company/PF department. So, how can we take it forward this issue. Do we need to give for parents or to his wife. Please suggest


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 5 Replies

G.L.N. Prasad (Retired employee.)     11 November 2018

The employer is discharged of his liability by paying the amount to Nominee.  It is the wife's turn to bring such injunction or file a case for partition.

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     11 November 2018

It is the responsibility of Employer to pass on the terminal benefits on the occasion of death of Employee, as per the recorded wishes (before his death) in the form of Nomination.  Employer shall be discharged if as per the rules the terminal benefits are disbursed to the people/legal heirs named in the nomination for PF/Gratuity and other such amounts if any.

 

Mere fact of a marriage being recorded in the records of Employer does not automatically confer any right to the spouse when there is a nomination and the nominee is claiming the amount.

P. Venu (Advocate)     11 November 2018

The PF amount belongs to all the legal heirs of the deceased employee; the employer only entrusts the funds to the nominee and it is the latter responsibility to discharge his duty as the true trustee.

However, please examine whether the etant norms provide for cancellation of the nomination in the eventuality of the employee acquiring a family.

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     11 November 2018

Nomination is nomination. It cannot be revoked with marriage etc.

Dr J C Vashista (Advocate)     11 November 2018

1. Nominee shall get 100% balance/ accured dues of PF.

2. Since the deceased employee got married just one month before his death, which is un-recorded in his service book, his widow can stake a claim and share PF, after filing objection with Commissioner PF and succession in District Court.


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