An employee had nominated his mother(25%), wife(50%) and daughter(15%) for the payment of gratuity. He died in 2012. After his death his wife informed the employer that mother and daughter of the employee have died in the year 2004 & 2010 respectively. She enclosed the copies of death certificates for proof of death. Can the full amount of gratuity be released to the wife(no change has been made by the employee under section 6(4) of the payment of Gratuity Act.
After getting legal heir Certificate, you can disburse the payment. Here there is no change of person. When there is no nominee and all deceased , you are searching for legal heir for the 25% and 15% portion of Gratuity .
There is no need for any further legal documents. THe Company will be fully protected and justified by distribution of the gratutity amount - 100% to the wife being the sole surviving nominee, in the instant case.
The best solution of problem is to depost the entire amount of gratuity with Controlling Authority and let him to decide the share in accordence with law. However, in the present case, if all other nominees died or/presumed to have been died, the payment will be made inaccordence with law of succession.