Saswatabanerjee
Partner - Risk Management
Surendra.raj1
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Dhrao
General Manager - Hr
Vivek.wadhwa
Manager Hr
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Private Consultant On Labour Laws
Arpan Ojha
Hr Executive
+4 Others

Thread Started by #Anonymous

Hi Team members
could you pls share me the following information regarding gratuity
1. what is % rate of gratuity amount paid to nominee of employee.
2. How many Nominee are entitle for gratuity after death & up to which age.
3. If nominees are 2 unmarried children;wife and dependant parents what will be the % ratio..
4. Does the employer pay the Gratuity amount to nominee(Wife) only who is mentioned in nomination form or dependant parents are entitled if they are not included in form.
5.What will happen if mother take all the amount of gratuity and dosenot distribute to children and get remarried.
6.Does the gratuity amount is paid in installment and if mother gets marriage does the % of mother is equally distributed among children.
7. If their is gratuity insurance also then i guess the gratuity is paid in installment but for much duration.Pls clear my doubt.
8. Can brother/sister be made nominee.
Pls share the answar.
Thanks in advance
Inquistiveness is the ladder of success.
13th August 2013 From India, Mumbai
#Anonymous
Hi Team members
could you pls share me the following information regarding gratuity
1. what is % rate of gratuity amount paid to nominee of employee.
2. How many Nominee are entitle for gratuity after death & up to which age.
3. If nominees are 2 unmarried children;wife and dependant parents what will be the % ratio..
4. Does the employer pay the Gratuity amount to nominee(Wife) only who is mentioned in nomination form or dependant parents are entitled if they are not included in form.
5.What will happen if mother take all the amount of gratuity and dosenot distribute to children and get remarried.
6.Does the gratuity amount is paid in installment and if mother gets marriage does the % of mother is equally distributed among children.
7. If their is gratuity insurance also then i guess the gratuity is paid in installment but for much duration.Pls clear my doubt.
Pls share the answar.
Thanks in advance
13th August 2013 From India, Mumbai
Dear Mr/Ms/Mrs,
as per your query, if any person who is married, his wife is considered as a nominee, but she got remarriage then she is not entitle for getting the gratuity amount in this case parents are legal nominee.
Share of gratuity is mention in the form which has been filled by the concern employee at the time of joining.
% of share is also mention in this form.if nominee is one person then he/she will be entitle for 100% gratuity and if two are then equal portion will be given.
13th August 2013 From India, Coimbatore
Sir; suppose if employee dies, Does the gratuity & gratuity insurance payment are different, does the amount paid in installment? Up to which age nominee are entitled Pls reply Thanks
14th August 2013 From India, Mumbai
My dear Anonymous,
I suggest you to go through Section 2(h), which defines 'Family' and Section 6 ,which relates to 'Nomination' under the Payment of Gratuity Act,1972. I am sure half of your queries will get the answer.If still remains some, you are free to approach members of the cite HR.
Thanks.
BS Kalsi
Member since Aug 2011
14th August 2013 From India, Mumbai
Hi,

Since, you have nomination, gratuity amount is payable to nominee only. See Section 4 of the Act. If no nomination is there, then let the claimant to move to Controlling Authority. It is best and suggested that you may deposit the amount of Gratuity to the Controlling Authority who will disburse as per Act and in this way, no claim would arise on you.

Part of Section 4 is reproduced below:

4. Payment of Gratuity.- (1) Gratuity shall be payable to an employee on

the termination of his employment after he has rendered continuous service for

not less than five years,-

(a) on his superannuation, or

(b) on his retirement or resignation,

(c) on his death or disablement due to accident or disease:

Provided that the completion of continuous service of five years shall not be

necessary where the termination of the employment of any employee is due to

death or disablement:

[Provided further that in case of death of the employee, gratuity payable to

him shall be paid to his nominee or, if no nomination has been made, to his

heirs,[/COLOR][/B] and where any such nominees or heirs is minor, the share of such minor,

shall be deposited with the Controlling Authority who shall invest the same for

the benefit of such minor in such bank or other financial institution, as may be

prescribed, until such minor attains majority].

Thanks

V K Gupta
14th August 2013 From India, Panipat
When in doubt, approach the authority under gratuity act, give him a notice and follow his instructions to the Last.
To the best of my knowledge, gratuity is payable as lump sum and not in instalments.
Once the money is paid to the nominee, how or what she does with it is her decision. That is more the reason you need to follow instructions of gratuity authority, so you are no held liable
15th August 2013 From India, Mumbai
As per nomination spouse got gratuity amount. He/she gets remarriage and did not give a single penny to other nominees like minor children,dependent/non dependent parents.
In this case is there any provision to take back gratuity amount from her/him and distribute to employees dependent children,parents etc.
16th August 2013 From India, Jaipur
To the best of my knowledge, there is no such provision. The children will have to make a civil suite in court
16th August 2013 From India, Mumbai
Dear Mr. HR Prof.
If HE gets remarried, then I think, there will no problem. If SHE gets remarried, then there may be problem.
I this regard, I may point out that when HER kith & kin are not able to get single penny from her, how can you get back the gratuity amount. Moreover, Nomination of the employee is not challengeable.
However, one question for our consideration comes out from your above query that what should we do to safeguard the interest of other family members of the employee?
However, forum will put light on this issue, yet I try to suggest that we should get details of the family of the employee at the time of executing nomination & share of amounts payable and at the time of implementation of nomination we take care of interest of other family members also. It may be noted that we can not force employees for doing so.
Thanks
V K Gupta
16th August 2013 From India, Panipat
it goes as per the form no f filled by the employee and in this case only civil suit may help
16th August 2013 From India, Hyderabad
Dear Member and Seniors,

There are lot of good shares is here but I would like to add some of my personal experiences in my past organizations regarding payment of gratuity which is very practical & Actual.

One of our office boy was resigned after completing 5.3 year service.

As he have not such knowledge of norms so our organization pay him only his salary.

After 6 month, he was come to office and demanding the gratuity amount, Company Shocked ! 'Who Tell you'

After a long debate,Company provide him his gratuity.

One Another Case, Our one of old employee died after one month from leaving the organization (His full & final was under process).

Now his all family come to Jaipur and asked to financial help. Company provide his all full and final settlement except gratuity.

Company had provide his sum of gratuity in trenches because they were come company headquarter after every 2 month in "Please Help" Mode.

In both of examples, I think company were wrong but sometimes company feels practical situation of particular employee so some company pay gratuity on his suo moto.

Thanks
16th August 2013 From India, Jaipur
Dear sir
please let me know that in case of death, the rendered continue service of 5 years is not necessary for gratuity, then how much working is mandatory for entitlement in case of death.
Regards
Anuj saini

21st August 2013 From India, Dehra Dun
Dear Anuj,
You have put up a very important but little complicated query. Sh Dhrao has rightly mentioned that there is no stipulation of minimum period for death cases in PG Act but I can only guess that a minimum period of one year shall be needed for being eligible for fifteen days' salary, which will be payable to the nominee of the deceased.
I think a complete debate is required on the issue.
BS Kalsi
Member since Aug 2011
21st August 2013 From India, Mumbai
Hi,
Please suggest, If one of parents (Mother) is also dependent of a married person then can a employee nominate Mother (Co share) with spouse and child.
Arpan Ojha
9589433222
23rd May 2018 From India, Indore
Legally the Nominee is only an agent.He or she (Nominee ) collects the Money and distributes the shares as per law.
23rd May 2018
Make confirm me sir, gratuity share will be divided in to two its possible
7th March 2019 From India, Chennai
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