Partner - Risk Management
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Thread Started by #Anonymous

ours is a shops and establishments organisation and one employee who worked for 4 years expired and there is no nominee and he is a married with kids and they all staying with parents.
1. what is the procedure to pay the final settlement under Muslim law
2. if any forms please provide
3. if nominee name is their but can we pay to the parents of the deceased and how legally
please provide the details
12th February 2014 From India, Hyderabad
The settlements are made as per the laws under which the the organisations are covered. No religious laws are in force for f/f settlements in India. pon
12th February 2014 From India, Lucknow
The best way is to ask the heirs to give you the succession certificate and to proceed accordingly.
If that is not possible or will take a long time, it would be a good idea to take the help of the labour officer in this regard. He can decide who is eligible for getting the money.
In general, under muslim law, the wife and children have equal share of the property, so they will get equal share of the money due.
Ofcourse, if the heirs come together and decide among themselves who gets what share and communicates jointly to you, you can follow that and give the money accordingly
24th February 2014 From India, Mumbai
Dear Mr. Anonymous

What makes you to hide while asking some question to the public. The anonymous facility is for those who are giving right and controversial answer to any complicated query raised by some members. You are asking your doubt and you can show your face to the public which will not be a problem to you.

First of all please clarify the below points.

Your doubt is on Mohammedan Law. Please disclose the nationality and the sub-sect (Sunni Muslim or Shia Muslim) of the deceased worker. If you give the details then our members can guide you on the Succession Act of the group as per Shariyat Law.

If you are in India, why do you want to follow the Mohammedan Law. You can give the same to the nominee and as per the percentage mentioned in the nomination form. If nomination is not available, you can instruct the family members to submit the family details and Legal heir certificate from the appropriate authorities and on receipt of the same you can act in consultation with the legal department of your organisation.
25th February 2014 From India, Kumbakonam
To help you better - I wish to have clarity - :
Firstly you say that there is no nominee, however pt (3) you have asked if there is a nominee and still you wish to give the financial to the parents.
Please clarify that - are you the employer or someone who is assisting the parents or the nominee on behalf of the deceased employee?
And as our learned members have stated earlier -
a) A company is not governed by Religious laws, but simply like you have said under S & E . Which means only S & E rules apply.
b) You have asked for forms - Please clarify for which Purpose? Gratuity, LE, PF, etc?
c) If there is a nominee name, and the nominee is alive and a major - there is no way the company can deviate. The company can give the proceeds only to nominee. If the other interested parties wish to contest, then they need to seek Civil Remedy.
Deena Jagasia
25th February 2014 From India, Mumbai
Dear Mr.Anonymous

The amount due to an individual as full and final settlement from his employer is his "property" in the strict sense of the term and therefore it has to devolve on his heirs. Heirs of the deceased employee have to be identified based on the Personal Law relating to succession applicable to the deceased employee. The employer is not competent to decide as to who are the heirs of the deceased individual. Therefore in the case of a person who dies without making a nomination, it is advisable for the employer to require the claimants(whoever claims the outstanding amount in the final settlement) to produce a succession certificate for that amount from a Court of competent jurisdiction. This is usually issued by a Civil Court after following a prescribed procedure. You have to specify to the claimants, the exact amount payable and the different heads under which those amounts are payable. This procedure could be followed whether the deceased is a Hindu, Muslim or a Christian or belonging to any other religion. If the disbursement is made based on the succession certificate, then the employer will not be liable for payment to a wrong person.

With regards

26th February 2014 From India, Madras
Welcome back Mr. Hariharan to this forum after a break. Thanks for your elaborated reply. Normally we used to ask the family members to bring the family details and Legal heir certificate. As per that we settle the F&F Amount to the Legal Heir of the deceased. The family details must be certified by the Tehsildar or Village Sarpanch and the Legal heir certificate must be notarised.
After obtaining signature in the claim receipt from the legal heir the cheque will be handed over. As a matter of fact the procedure will take about 30 to 45 days time, any litigation will come in the lime light and with that we can be cautious in making payment to the claimant.
27th February 2014 From India, Kumbakonam
Boss, The problem is that getting a legal heir certificate takes a lot of time Holding back F&F till then would cause hardship to the family. So, what do you do in such a case
27th February 2014 From India, Mumbai
Dear Saswata
As a matter of fact the family members might have the Ration Card in which the names of the family members will be available. With that if the family members approach of sure they will get the Details of Family members duly notarized. If the deceased is a Mohammedan then the family members can get the Legal heir certificate from the Tehsildar Office. On receipt of the same we have to issue the DD or Cheque for the F&F Amount. If the legal heirs are more and they seems to be fighting with each other, then we can take the F&F amount into parts (Father & Mother - 33.3%, Wife - 33.3% and Minor Children - 33.3%) split the F&F amount and get the DD and issue to the Legal Heirs.
While issuing the same we must get the receipt duly signed by each by quoting their names and amount against each.
27th February 2014 From India, Kumbakonam
Yes, I see the rationality of the process.
I was told by a senior HR manager that it is a good idea to involve the labour department so that the company does not get blamed for the payment to any of the claimant in a future dispute. He said where gratuity is involved, let the labour commissioner (appropriate authority under gratuity) should be asked to decide (deposit the money with him). In other cases, involve the factory inspector or chief inspector.
Do you agree with that suggestion ?

27th February 2014 From India, Mumbai
As a matter of fact, the query is about death and not accidental death. Hence the Factory inspector will not come into picture. But for gratuity we can involve the Assistant Labour Commissioner from whom we got the S&E Registration.
27th February 2014 From India, Kumbakonam
Dear Mr.Boss

During my tenure as Controlling Authority and Appellate Authority under the Payment of Gratuity Act and also as Commissioner for Workmens Compensation I have come across instances, wherein two legal heir certificates, in respect of a deceased employee, containing two different names as legal heirs were issued. Then I asked the claimants to produce a succession certificate, which solved the issue. In the case of a deceased muslim worker a claim was filed by the wife of the deceased under the Payment of Gratuity Act. In the same case the father of the deceased filed a claim representing the deceased's daughter, The Muslim law relating to succession is very complicated. The issued raised by the father of the deceased was that before his death the deceased had divorced his wife. The Authority under the Payment of Gratuity Act is not competent to decide whether there was a legal divorce or not, whether under the Muslim law or Hindu law or any other law. I had directed them to get a succession certificate from a court of competent jurisdiction. The Court upheld the claim of the child of the deceased and did not issue a succession certificate to the wife. I thought that these instances will be of help and interest to the Forum members.

With regards

1st March 2014 From India, Madras
Dear Mr. Hariharan

First of all let me thank you for sharing your life time experience with our members on the subject. As a matter of fact the Sunni and Shia will follow little different succession methods. If the Sunni Muslim does not have any child then the property will go to the wife and parents. But in case of Shiya Muslims the case is different. The property will go to the Brother in law of the deceased. Otherwise all the other procedures are almost similar.

Further, while giving Talaq to the lady wife, the person has to settle the Dower whatever promised at the time of Marriage. If the lady wife got Talaq then obviously the deceased might have settled the Pending Dower which was promised to his wife at the time of Marriage. By seeing the legality of Divorce itself the court can come to one conclusion about the case. Hence the Court upheld the claim of the child of the deceased and did not issue a succession certificate to the wife.

Keep on enhancing our knowledge Mr. Hariharan.
1st March 2014 From India, Kumbakonam
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