Importance of Nominee in PF/ESI/GRATUITY Forms
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Importance of Nominee in PF/ESI/GRATUITY Forms

k_shenbagarajan Started The Discussion:

Dear Members,

As an HR we are responsible for getting the nomination form for ESI/PF/Gratuity correctly from the employees and also fresh nomination has to be got from the employees who gets married / divorced/ nominee dies.

Mostly the same has not been given in the company policy / procedures but as an HR the above has to be educated to the employees.

The importance is known only when the employee dies and the nomination is not given correctly / updated.

As per law, for an unmarried employee the dependent parents would be mostly nominee and after marriage the nominee changes as wife/husband even if they dont update the nomination form because they become the legal heirs.

There are some instance where after the employee death the wife/ husband has got the money and the dependent parents are left alone and vice versa.

Even though it is done on some occasion the blame has to be taken by the HR only.

If the employee is properly educated on the importance of nominee then he would have given as 50:50, 75:25, 60:40, 100:0 or the case may be.

Request all the HR members to educate the employees, the importance of Nomination / Nominee in the statutory forms.

Also kindly share your experience you had faced of nomination in PF/ESI/GRATUITY in case of death employee.

The motive here is all the dependents of the deceased employee should be benefited without any grievances

pca - Member Since: Apr 2008
Dear friends,

It is very important to get nomination forms under PF Act, Gratuity Act, Insurance Act etc. since in case of death of the beneficiary, the nominee will get money without much formalities. However, it may be noted that legally there is a difference between a nominee and a legal heir. Supreme Court has held that nominee is just a trustee for the deceased estate and legal heir is the real owner of the money. An article in this regard is attached for your information.

Thanks


Attached FilesProvided by community member pca. Join us to learn and grow with your peers.
File Type: pdf Nominee vs legal heir.pdf (203.6 KB, 341 views)
subbarao.v - Member Since: Feb 2012
I am entirely different from Mr.Shenbagarajan's statement because what ever feeds back given by the employees, HR Dept is collecting.HR Dept may not not know whether this is original name/nick name.This is not HR job.This may be one of the jobs.
After getting the experience, they can explain the workers regarding this.
With regards
V.Subbarao

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