Gratuity Payment Dilemma: How to Handle Claims When Both Nominee and Employee Pass Away?

Employee Gratuity Payment Issue

An employee passed away and had nominated his mother under the Payment of Gratuity Act. Unfortunately, the mother also died shortly thereafter.

Now, the father of the employee claims to be the sole heir. Can the employer release the payment without verification, or is a Succession Certificate required?

If there is any change in the nomination given by the employee in Form F, gratuity will become payable to the legal representative authorized by the legal/succession certificate only.

In case of any dispute, you can remit the amount of gratuity to the Labour Officer, who is the appropriate authority under the Payment of Gratuity Act.

Regards,
Madhu.T.K

Understanding the Payment of Gratuity Act, 1972

In the Payment of Gratuity Act, 1972, there is a condition of continuous service for not less than five years. Whether the employment of the said person is legal or not does not appear to be an important factor. However, much will depend on the orders of the Honorable Supreme Court. Whether the compensation of Rs. 10 lakh may be in lieu of said gratuity, etc. Therefore, I think the employer will also keep in view the contents of court orders before contemplating claims under the above Act.

Regards

While appreciating the posts of Harsh and Umakanth, I would also like to consider another angle. Is it due to any mistake or concealment of facts on the part of the employee that he was allowed to work for such a long period? Or don't we find that there was negligence from the management side, resulting in the management failing to get the order of the court in time? Is it due to this negligence that the employee continued? If so, don't we say that gratuity is payable for the service that he had rendered?

Regards, Madhu.T.K

Thank you for appreciating my posts and views. Your encouragement continues to motivate me to participate in discussions on citehr.

However, I would like to submit that, as observed from various detailed judgments of the Honorable Supreme Court/High Courts, the courts in administrative matters, such as the one we are discussing, often close the entire dispute for the future by awarding a lump-sum compensation to the aggrieved employee. This lump-sum compensation may include all claims, such as notice pay, gratuity, leave encashment, etc., in respect of which the aggrieved employee must have made his claims in the petition. I believe that the observations of Mr. Umakanthan M. appear to be important and relevant in this situation.

Regards