Handling Gratuity for Minor Nominees: What Steps Should I Take After an Employee's Passing?

Dear Seniors, I request your assistance with this case: An employee has passed away, leaving two minor nominees. Regarding the gratuity payment, what steps should I take? A legal heir of an employee is eligible for the payment of gratuity under the second proviso to Subsection (1) of Section 4 and the second proviso of Subsection (1) of Section 6 of the Payment of Gratuity Act, 1972: "Provided further that in the case of the death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to his heirs, and where any such nominees or heirs are minors, the share of such minors shall be deposited with the controlling authority who shall invest the same for the benefit of such minors in such a bank or other financial institution, as may be prescribed, until such minors attain majority."

The share of the two minor legal heirs is to be invested for their benefit in a bank or financial institution until they reach the age of majority.

Should I send the cheque to the Assistant Labour Commissioner? To whom should the cheque be made payable? Please respond!

Thank you!

Location: Raipur, India Tags: payment of gratuity, payment of gratuity act, legal heir, gratuity act, labour commissioner, financial institution, gratuity payment, City-India-Raipur, Country-India

To address the situation of gratuity payment to the minor nominees after the death of an employee in accordance with the Payment of Gratuity Act, 1972, the following steps should be taken:

🔍 The cheque for the gratuity amount intended for the minor nominees should be made in favor of the minor nominees themselves. It should be clearly stated on the cheque that it is for the benefit of the minors.
🔍 As per the legal requirements, in the case of minor beneficiaries, the gratuity amount should be deposited with the controlling authority, which in this case would be the Assistant Labour Commissioner.
🔍 The Assistant Labour Commissioner will then be responsible for investing the funds on behalf of the minor nominees in a bank or financial institution until they reach the age of majority.
🔍 Ensure all necessary documentation is completed accurately and in compliance with the relevant laws and regulations governing gratuity payments to minor heirs.
🔍 Regularly monitor the investments made on behalf of the minors to ensure prudent management and growth of the funds for their future benefit.
🔍 Keep detailed records of all transactions and communications related to the gratuity payment to the minor nominees to maintain transparency and accountability.
🔍 Seek legal advice or guidance if needed to navigate any complexities or uncertainties in the process.

By following these steps and adhering to the legal provisions outlined in the Payment of Gratuity Act, you can ensure the proper handling and investment of the gratuity amount for the benefit of the minor nominees until they attain majority.