Partner - Risk Management
Educator, Management Consultant & Trainer
Retired From Air India
+3 Others

Respected Seniors

I have a very peculiar case. One of our female employee (unmarried) resigned from the services due to self sickness. Since, she is unmarried and parents expired long ago, she was residing along with her sister. But, there is no proof of residence for her. There is no mention of her name in the ration card and she did not have any other address proof. Employee died in hospital immediately after resignation. Our company normally takes 15 to 30 days to process the full and final settlement but the employee died in hospital with in this period. Unfortunately, she has not made any nomination. Her sister is the person who has taken care of her during her final days. But, we are facing difficulty in getting the next of kin certificate. For want of the same, PF withdrawal process is pending. Is it advisable to recommend the management to clear the gratuity and other full and final settlement without next of kin certificate? Will there be any consequence if the same is cleared without next of kin certificate.

Need guidance from the seniors please.
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Ask the sister to produce succession certificate.
How big is the amount involved?
If HR is proactive documents of employees will be verified from time to time and updated with latet changes and employees should be adviced on importance of proper nomination,latest verified addresses etc.
Dear sir,
Please do formalities as Mr Nath Rao has suggested as you need to handle practically things manageable.As there is lapse on your company part as well.Such as no address etc.When there is no nomination declared by deceased employee in documents,it is succession certificate that is only thing making clear about legal status of claimant(s) in dues to be paid.
RDS Yadav
Labour Law Adviser
If the amount is not much ( I think the limit is Rupees one lakh - can be easily verified ) then an indemnity bond by other family members and affidavit would suffice.However succession certificate is the best option as it would help in any other claims by sister in future.
Dear nathrao, You can take help from local news paper ,or her area news paper give 15-30 days period,, so that if any family member will claim, it will be also legally help you,
It is legally safe to ask claimant to produce succession certificate from competent court.
This will keep company clear from any issue or subsequent claimant.
Putting ad in news aper etc is ok,but we as HR need to protect company interest first while equally looking after staff.
Upto some amount mere indemnity bon will suffice,but in the circumstances described by original querist,the company sadly enough does not have full details/no details on NOK etc.
So play safe.
It is costly to get succession certificate but there is no suitable option.
HR needs to verify documents from time to time and proactively ask staff to update.
like some one gets married,remind for change of NOK.
The payment of gratuity act already provides for,such a scenario.
Where there is no nominee, or where there is a dispute on who should get the money, the Comoany should approach the authority under gratuity act (Generally the labour commissioner) and ask him to decide who will get the gratuity payment.
You may be required under order of the commissioner to deposit the said amount with him pending his decision.
Details of the procedure is given in the act and rules.
Similar situation in my company. Can anyone help me with the proper letter Drafting for final settlement for such case?

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