How to Handle Disputes Over Employee Death Benefits: Seeking Step-by-Step Guidance

Hello Learned Members, I have a situation in our company where the deceased employee has not updated her nominee details for any of the benefits (Life Insurance, PF, Gratuity, etc.). Both the parents and the spouse of the employee have given written letters asking for us to settle the claim in their favor. There is a dispute between them.

We tried to mediate between the parties; however, both parties won't agree. I'm aware that the next step is to remit all the payments due to the employee before the Labor authorities.

Step-by-Step Guidelines Needed
I want step-by-step guidelines on how to remit the payments before the Labor Authorities. Kindly guide and share your knowledge and thoughts on this.

Regards,
Duhsyanth.A.L

Dear Dushyanth, The subject comes up for discussion repeatedly. You may refer to the following links for past discussions:

https://www.citehr.com/629602-legal-...e-parents.html

https://www.citehr.com/595259-wife-c...ee-father.html

https://www.citehr.com/632533-nomine...ed-person.html

https://www.citehr.com/255385-pf-cla...wife-left.html

Thanks,

Dinesh Divekar

Hi Dushyanth, I hope you have collected the Marriage Registration certificate and Legal Heir certificate from the parties concerned. In case of a dispute between the spouse and parents of the deceased, direct them to apply for a Succession Certificate through the competent Court. Importance of a Succession Certificate Usually, a succession certificate is key. In the absence of a will, a succession certificate will be the primary document through which the heirs can claim the assets of a deceased relative.

In this regard, instead of remitting the amount to the labor commissioner, it is better to settle by establishing a legal agreement with a mutually agreed distribution ratio amongst the claimants.