Dinesh Divekar
Business Mentor, Consultant And Trainer
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Dear Leaders,
My query:
One of our lady employee expired.
Case details:
Nominee : son of 17 years
Husband : expired.
Employee service period : 22 years
Best to my knowledge according to law.
1. Pension is only applicable to son though employee mother and father exists .
2. All amount i.e gratuity, pf and other schemes is entitled to son though he is minor.
3. Guardian certificate need to be attached because nominee is minor.
Please help me , anything mentioned in above point is wrong or missed also see from legal angle that am i giving fund to correct person.
Please suggest legal reference for the case if any for my future backup ..

From India
Dear Mr Himanshu Saraiya,
I do not know what the law says in this regard, however, can we tell the son to wait till becomes 18 and then file a claim? This will remove all the legal hassles.
Yes, claim settlement will be delayed, however, as the son is minor, his legal guardian will receive all the terminal benefits. How to prove who is a legal guardian? Secondly, what if the legal guardian pockets the money? This risk cannot be ignored.
Dinesh Divekar

From India, Bangalore
In such cases, one formula that worked in many cases, is to deposit the money in FD in any bank with the provision that till the nominee becomes major, the bereaved is entitled only to draw interest and not the capital amount. This has helped many a families to tide over the crisis.
From India, Mumbai
Is the son not eligible for orphan pension? Gratuity can be deposited with Controlling authority,if there is no nomination.
From India, Thiruvananthapuram
The amounts payable by the employer by way of gratuity has to be deposited with the Controlling Authority under the Act for disbursement to the minor son on his attaining majority.
Other items like PF would be disbursed by the concerned authorities as per their rules and regulations in this regard. As employer, you may extend all the help to the minor.

From India, Salem
Thanks all for your feedback. However still not clear as per law .
From India
To my knowledge, as an employer, so long as the F&F settlement is made in favour of the Nominee as per the Nomination papers filed in the record should satisfy the requirement. Rest of the things the employer, officially, cannot take a lead to ensure the right person gets the benefit. What if the minor nominee sign all the papers as per the dictates of his guardian? Practically it will be difficult for the office to keep a watch on the flow of the kitty. However, I wish to endorse the opinions that the amounts can be locked in the form of FD till he attains 18 yrs and becomes eligible of operating on his own. Or the minor should open a bank a/c in his name, a joint a/c with his guardian which can be operated only jointly not severally.

There is also possibility of facing resistance from his kith & kin if the office, in good faith, take such safety measures to ensure preventing that unscrupulous people don't dupe him.

Legal Position- Nomination under The EPF/ Payment of Gratuity Act:

If no nomination has been made, it shall be paid to the legal heirs of the deceased employee or if the heirs are minor, the share of such minor shall be deposited by the controlling authority with a bank till he attains majority.

A minor cannot appoint nominee in this case. On his behalf nomination will be done by a person legally competent to act on his behalf. Joint account of a minor is allowed with his guardian which cannot be operated the other signatory severally.

Minor's Interest and Guardianship:

-Where the legal heir is a minor, lawful guardian will represent minorís interest.

For Hindus and Christians minorís father is the natural guardian and after him the mother. Supreme Court has decided on guardianship of minor (Hindu) that even mother can be a natural guardian even during the life time of father since the welfare of child is of utmost importance.

For a Muslim minor father, then person appointed by father's will, then father's father and then person appointed by father's father will be guardian in that order.

From India, Bangalore
Thanks Kumar.s , for the detailed explanation. Quite use full Many of my doubts have been resolved
From India
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