Gratuity Dilemma: How to Resolve a Conflict Between Wife and Father's Claims?

One person is eligible for gratuity and has nominated his father. At that time, he was not married. Now, he has passed away, and his wife is claiming the gratuity. What should be the appropriate step regarding this case?

Dear Mr. Srivatsava,

Please ask the family members to submit the Legal Heirship Certificate to consider the payment of Gratuity.

Always ask your question under the proper category - Employee Compensation & Benefits or Gratuity instead of merely mentioning "Query", so that you will get a quick reply from senior professionals.

N. Nataraajhan, Sakthi Management Services (Hp: +91 94835 17402)

Understanding the Payment of Gratuity Act 1973

As per the Payment of Gratuity Act 1973, when there is a nomination, the nominee has the right to receive the gratuity amount, but it cannot be entirely appropriated by the nominee. The Gratuity Act is a complete code in itself, and there is no need for making the payment of gratuity on the basis of a legal heirship certificate as per the personal law of the deceased.

Handling Gratuity in the Absence of a Nomination

In the event of no nomination, the nominee being predeceased, or if there is a dispute, the Act mandates that the gratuity amount should be deposited with the controlling authority, who has the power to decide the rightful heirs. Please ascertain whether the father of the deceased employee is still alive. If he is, then the gratuity amount could be handed over to him, but persuade him to share with the wife her due share.

Dear Dipti,

Now, there is a dispute under Section 7(4)(a) of the Payment of Gratuity Act, 1972 as to the person entitled to receive the gratuity. Therefore, you should deposit the amount of gratuity, as admitted by you, with the Controlling Authority under the Act for your area. The Controlling Authority would disburse the amount accordingly after holding an enquiry in this regard.