Post Death Of An Employee Who Should Be The Nominee-Mother Or Wife - CiteHR
Saswatabanerjee
Partner - Risk Management
Tsivasankaran
Consultant
Sumitk.saxena
Service/manager-hr
AK CHANDOK
Epf & Esi Matters
Abhijit_Barua
Asst. Manager Compliance
Raajaramk
Self Employed
Sunilgaik1976@gmail.com
Advisory & Execution Of Labour Law Compliance
Loginmiracle
Consultant & G.m.
Venkatraghavanm
Ir, Er, Payroll, Recruitment,
+4 Others

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Dear All,
Subject to the death of one (1) of our worker, his wife has send a letter intimating the company about his death and has applied for PF and Gratuity Claim. She has enclosed the death certificate which is in her possession. Now the PF, Pension and Gratuity nomination of that worker is in the name of his mother who is still alive.
In view of above what can be the feasible steps may be taken by the company and who should be held as actual nominiee.
Please suggest.
Rgds..
SDG

talk to the both mother & wife settle on the basis of 50-50 , but make sure to take noc from both
(2) An employee may, in his nomination, distribute the amount of gratuity payable to him under this Act amongst more than one nominee.

(3) If an employee has a family at the time of making a nomination, the nomination shall be made in favour of one or more members of his family, and any nomination made by such employee in favour of a person who is not a member of his family, shall be void.

(4) If at the time of making a nomination the employee has no family, the nomination may be made in favour of any person or persons but if the employee subsequently acquires a family, such nomination shall forthwith become invalid and the employee shall make, within such time as may be prescribed, a fresh nomination in favour of one or more members of his family.

(5) A nomination may, subject to the provisions of sub-sections (3) and (4), be modified by an employee at any time, after giving to his employer a written notice in such form and in such manner as may be prescribed, of his intention to do so.

(6) If a nominee predeceases the employee, the interest of the nominee shall revert to the employee who shall make a fresh nomination, in the prescribed form, in respect of such interest.

(7) Every nomination, fresh nomination or alteration of nomination, as the case may be, shall be sent by the employee to his employer, who shall keep the same in his safe custody.

Dear Saptarshi,
In case of employee death the nominee is person who should receive the payment but it is legal heir who is entitled to use this money.
The succession certificate has to be obtained from Competent Court.
Nominee can can not deny the legal right of the Leagal heir of the expired person.
If the emloyee wants to use the amount to be received from diiference sources such as Gratuity, PF then such person should make the will in favour of nominee before his/her death if possible this will has to be registered. Only nomination will not help the nominee to claim the money.
I trust this will help you....

No,
Prashant's contentions are incorrect
The entire purpose of having nominees it to specify who will get the money
It will go to the nominee and not to the heir. If that was the case the entire process of recording nominees would be a waste of time, money and paper.
The validity of the nominee depends on certain circumstances
You need to see when he filed the nomination
If he did it after marriage, you need to give it to the mother
If he did it before marriage, he is supposed to gove a new nomination after marriage. The old nomination becomes invalid (need to check the exact regulation, I do not have it with me). If this was the cases the, you need to call both mother and wife and see who is the legal heir. Getting both to agree to getting it 50:50 would be the best idea. I hope they are together .....

The amount of Provident Fund, Gratuity and others will be paid to the nominee as per your records. but for pension from PF you may ask for succession certificate from both the parties, which they will obtain from their area Court.
While filling the form employee would have written his mother name as nominee, and would not have changed to his wife name due to ignorance. Since wife is legally eligible, and mothers name in nominee part, make sure to speak to them and manage with 50 - 50 each and close the matter.
In these cases educated people can take the call on humanitarian grounds
regards

As HR professionals we have to ensure that the employee submits his new Nomination form once he is married and we have to educate the employees on this, so that there will be no confusions in these circumstances. Yes on humanatarian ground we have to consider the wife who is alone after his death, but at the same time if he is the only bread earner, we have to consider his mother also. But it would be appropriate if the employees files the fresh nomination after his marriage so there are no hickups and however there is option on the percentage of the portion he proposes to distribute in the nomination form. But it is sure that if he is married, his wife will get the pension as per the survivor certificate which is to be obtained.
Regards

Manage 50-50 basis, because both are entitled all the dependent family member are entitled to claim. Regards, Anand
IS NOMINATION APPLICABLE TO SISTER
one of the employee had nominated his sister who was mentally retarded in his PF nomination along with his wife. After his unfortunate death, the claim settlement was done to his wife who had assured to distribute the amount
and production of NOC from deceased family members (3 surviving brothers and 4 surviving sisters) to mentally retarded sister. But, later it appeared that mentally retarded sister had not been made known of his brother death and none of the deceased brother or sisters given NOC. the company based on NOC and production of death certificate settled PF and gratuity amount to deceased wife. Is it right on company part? How does nomination to mentally retarded sister get justified without payment? Can anyone please clarify.


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