Gratuity Dilemma: Should We Pay the Deceased Employee's Husband or Her Children?

Dear Seniors, one of our female staff members has passed away while in service. She was eligible for gratuity, and we are going to pay the entire amount as per the law. The question is that she had not submitted any nominations for gratuity during her service. She has a husband and two sons. The husband has claimed the gratuity from us. However, some relatives of hers approached us and said that since the husband is an alcoholic and might spend the amount irresponsibly, we should pay the amount to her children. One of her sons is from her first husband. The amount payable is more than two lakhs, so we are confused about whom we should pay.

Thank you.

Not clear whether the payment is under the Gratuity Act. Gratuity, in the absence of a valid nomination, can only be paid to legal heirs, for which the claimant may be asked to produce a legal heirship certificate. You cannot deny the husband if he produces a legal heirship certificate but can be limited to the percentage of authority specified in the certificate.

Mohan Kumar
Ph: 9446017604

From where will relatives get this legal heirship certificate?

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@Sanjayadhar - The aggrieved individual needs to connect with the Collectorate office for the issuance of a Legal Heirship certificate under the Act/Rules/Government orders: Maharashtra Treasury Rules, 1968, Rule 359.

Please let me know if you need any further assistance.

Dear Questioner,

It is the responsibility of the employer to pay gratuity within 30 days from the date it becomes payable. Failure to do so would entail the levy of interest for the delay. The case at hand involves the sudden death of an employee who did not file any nomination for her gratuity. Her survivors include an allegedly unreliable second husband and two sons, one from her first marriage. However, all legal heirs can stake their claims for the deceased's gratuity. Thus, there is an existing dispute regarding the legal genuineness of the heirship of the survivors, the extent of their respective shares, and the manner of disbursement if the sons are minors.

To relieve yourself of the legal burden as an employer and the interest burden due to delayed disbursement, it is advisable to calculate the amount of gratuity payable under section 4 and deposit it immediately under section 7(4)(a) of the Payment of Gratuity Act, 1972, with the Controlling Authority under the Act for disbursement.