Employee Death Benefits: Can the Company Split PF and Other Dues Between Wife and Mother?

An employee died, and his wife was a 100 percent nominee of the PF. The company processed the EDLI only. Other funds were not processed. The company mentioned the PF only to his wife. However, other amounts are pending, for example, leave, gratuity, etc. The company's HR head informed me that the shares would be split 50:50 between the wife and the mother. Is it possible for any legal professional or advocate to help me?

Hi, upon the death of an employee, you need to collect a Legal Heir certificate from the family of the deceased. The amount should be distributed equally among all the members mentioned in the Legal Heir Certificate.

In case of any dispute or disagreement among nominees in sharing the settlement amount, you may advise them to submit a Succession Certificate. They should apply for it through the Court and submit it.

Before releasing the payment, ensure that all parties sign the documents on stamp paper.

Document Establishing Entitlement to Gratuity

Which document establishes that both the wife and mother are entitled to receive the gratuity amount? Obviously, the employee should have filed Form F, the nomination under the Payment of Gratuity Act. It is the responsibility of the employer (the HR Head) to collect it once an employee completes one year of service.

Disbursement of Other Dues

For the disbursement of leave encashment, salary due, bonus, etc., the same nomination shall be presumed as given in the absence of a separate nomination for each of them. Nobody would give a separate nomination for each payment, such as salary, leave, and bonus, but the employer would pay it to the spouse mentioned in the joining reports. The joining report is expected to have a column to collect the information about the nominee. If it is not available in the company formats, who is responsible? The employee or the HR person? Certainly, the HR is responsible. Therefore, ask him to see Form F of the Payment of Gratuity Act and disburse the gratuity and other dues.