Legal Dilemma: Should We Pay a Deceased Employee's Bonus to His Son?

thomas_jessy
One of our contract workers (directly employed by us but on a contract basis) expired last year while in service and was eligible for a bonus. Now, his son is working in our company on a contract basis and is asking for his father's bonus. Is there any legal obligation to make the payment to his son, or what is the legal procedure to make this payment? Please clarify.

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Madhu.T.K
You should make the payment of the bonus due to the deceased employee to the nominee, which in your case is likely to be the deceased employee's spouse, not his son. Therefore, ensure that any nomination exists. If not, pay it to the widow of the employee or any other person, including the son who is now employed and duly authorized by her.

Regards,
Madhu.T.K
Raj Kumar Hansdah
I am surprised to note that the dues of the deceased employee have not been paid, even after a year of his death, and probably would have remained unpaid if his son, who is now employed with you, had not been pursuing this matter. As advised above by Mr. Madhu, kindly expedite the pending bonus payment to the legal successor/nominee of the deceased employee. HR professionals should be more sensitive and proactive on such issues.

Warm regards.
skhota
Is there any provision under the Payment of Bonus Act for filling out any nomination form for the payment of an unpaid bonus of a deceased employee to his legal heir, similar to the Payment of Gratuity Act? Please cite the relevant section under the said Act.

With Regards,
SK Hota
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