Gratuity Dilemma: Who Should Receive Benefits When Both Spouse and Parents Claim?

I have one question related to the Gratuity Act of 1972. In our company, one employee passed away at his home. He had appointed his wife as a nominee. However, we have now received an application from his parents, and they mention that they were dependent on him, so they believe they are also eligible to receive a portion of the Gratuity.

I would like to know who is entitled to receive a portion of the Gratuity. I am eagerly awaiting your urgent reply.

Best regards,
Parimal

As per my knowledge, we can only give the nomination benefits to the nominated person (in this case, his wife), as stated in the nomination form. We have written proof to support this.

Since your deceased employee has nominated his wife, she is the only eligible person to receive the gratuity benefits. Her eligibility cannot be disputed. Even in cases where there is no nomination, only the legal heir is eligible for gratuity benefits, and the legally wedded wife is, by default, the legal heir.

Regards,
Kamal

Mr. Kamal is right. Employees can choose the conditional nomination option as well. For example, they can allocate 50% for their spouse and the remaining 50% for their parents. However, the final decision rests with the employee.

Thank you.

Dear Parimal, Please go through Section 4(1) of the Payment of Gratuity Act, 1972 for your query.

R.N. Khola
(Labour Law Consultants)

Request for Supreme Court Judgments on Dependency Claims

I have heard about situations where a dependent submits an application to the employer, declaring that they were dependent on their son. The Supreme Court has provided many judgments on this matter. Therefore, I kindly request you to please share the relevant judgment with me.

Best Regards,
Parimal

Under the Payment of Gratuity Act, 1972, it does not make any difference whether a worker has died at work or at home to claim the gratuity amount. The employee is free to nominate anybody other than his family members, but once he acquires a family, the nomination has to be invariably in favor of family members and should be accepted by the employer. Since he has appointed his wife as a nominee, the gratuity amount shall be payable to his wife. You are bound to follow the State rules framed under the Payment of Gratuity Act, 1972, and cannot part the same to anyone. If you have not made the payment to the recorded nominee till date, you can advise the parents, who claimed to be dependent on him, to approach the Controlling Officer of the area declared under the Payment of Gratuity Act, 1972.

Regards,
B.S Kalsi
Member since Aug 2011