I am working as an HR professional with an urban development company. Recently, one of the employees from my company passed away due to an accident. His family members have called for his outstanding dues, and at that time, we came to know that he committed suicide due to some family issues. His wife and mother both are claiming the money as nominees. We have requested both of them to split the money 50-50, but none of them is willing to agree, and they are blaming each other for his death. Officially, we cannot intervene in his family matters, but now his mother is also elderly, and his wife has all rights to claim her husband's money. Can anyone please suggest to me what the legal procedure should be where both parties receive an equal share of the amount, and if not, who should rightfully receive the money? This employee had listed his father as the nominee on his bank account, but his father passed away two years ago, and he did not update the nominee details.
Please advise on what the company can do legally in such a case.
From India, Mumbai
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10Please advise on what the company can do legally in such a case.
From India, Mumbai
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Handling Employee Dues and Succession Certificates
The company must compile a list of dues and amounts to be paid. The bank account of the deceased employee is not under HR or company purview. The bank will require a succession certificate since both the mother and wife are at odds. EPF will be distributed according to the nomination, and if a dispute over EPF dues arises, a succession certificate will be necessary.
Importance of Updating Nominations
The company can educate its employees to update their nominations whenever significant changes occur. Disputes can arise if nominees disagree, and one way to prevent delays in the release of death benefits is by maintaining updated nominations. Bank accounts should always be joint with either an E or S mode of operation.
From India, Pune
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The company must compile a list of dues and amounts to be paid. The bank account of the deceased employee is not under HR or company purview. The bank will require a succession certificate since both the mother and wife are at odds. EPF will be distributed according to the nomination, and if a dispute over EPF dues arises, a succession certificate will be necessary.
Importance of Updating Nominations
The company can educate its employees to update their nominations whenever significant changes occur. Disputes can arise if nominees disagree, and one way to prevent delays in the release of death benefits is by maintaining updated nominations. Bank accounts should always be joint with either an E or S mode of operation.
From India, Pune
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Gratuity, if payable, should be handed over to the labor commissioner's office (or the authority under the Gratuity Act), and all details should be provided to them so they can determine who the money will go to. This way, you will not be liable in court. You can also seek assistance from the authority under the Payment of Wages Act to decide who should receive the money.
Alternatively, you can set the money aside and request a succession certificate.
From India, Mumbai
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Alternatively, you can set the money aside and request a succession certificate.
From India, Mumbai
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Legal heirs and not nominee alone entitled to terminal benefits - Madras HC 8.9.2016.pdf
Employee Benefits.doc