Is there an age limit to pay gratuity to the nominee?
To All HR,
Is there an age limit to pay gratuity to a female nominee? The mother expired after 20 years of service as a teacher in an educational institute. The HR mentioned that the nominee's age should be below 24 years for the gratuity to be paid. Is this information correct? Please provide your valuable advice on this matter.
From India, Delhi
Acknowledge(0)
Amend(0)
To All HR,
Is there an age limit to pay gratuity to a female nominee? The mother expired after 20 years of service as a teacher in an educational institute. The HR mentioned that the nominee's age should be below 24 years for the gratuity to be paid. Is this information correct? Please provide your valuable advice on this matter.
From India, Delhi
Acknowledge(0)Amend(0)
Dear Rao,
I believe that the particular HR person is in dire need of refreshing their knowledge of the Payment of Gratuity Act, 1972.
No Obligation for Nomination
First and foremost, there is no obligation on the part of the employee to make a nomination. In the absence of a nomination and in the event of the employee's death while in service or otherwise before the payment of their gratuity, the gratuity automatically goes to their legal heirs.
Definition of 'Family' Under the Act
Secondly, the term 'family' has been defined under section 2(h) of the PGA, 1972 as follows: "'family' in relation to an employee, shall be deemed to consist of –
(i) in the case of a male employee, himself, his wife, his children whether married or unmarried, his dependent parents and the dependent parents of his wife, and the widow and children of the predeceased son, if any,
(ii) in the case of a female employee, herself, her husband, her children whether married or unmarried, her dependent parents and the dependent parents of her husband, and the widow and children of her predeceased son, if any."
Nomination Provisions
Thirdly, section 6 of the Act specifically allows the employee to nominate one or more members of the family.
Gratuity Payment to Legal Heirs
Lastly, the second proviso to section 4(1) of the Act clearly states that in the absence of a nomination by the employee, the gratuity shall be payable to the legal heirs of the employee, which includes a minor as well.
Therefore, the statement made by the HR is completely incorrect as neither age nor marital status in the case of a female is a criterion to be a nominee or a legal heir of the employee under the Act.
From India, Salem
Acknowledge(2)
Amend(0)
6108I believe that the particular HR person is in dire need of refreshing their knowledge of the Payment of Gratuity Act, 1972.
No Obligation for Nomination
First and foremost, there is no obligation on the part of the employee to make a nomination. In the absence of a nomination and in the event of the employee's death while in service or otherwise before the payment of their gratuity, the gratuity automatically goes to their legal heirs.
Definition of 'Family' Under the Act
Secondly, the term 'family' has been defined under section 2(h) of the PGA, 1972 as follows: "'family' in relation to an employee, shall be deemed to consist of –
(i) in the case of a male employee, himself, his wife, his children whether married or unmarried, his dependent parents and the dependent parents of his wife, and the widow and children of the predeceased son, if any,
(ii) in the case of a female employee, herself, her husband, her children whether married or unmarried, her dependent parents and the dependent parents of her husband, and the widow and children of her predeceased son, if any."
Nomination Provisions
Thirdly, section 6 of the Act specifically allows the employee to nominate one or more members of the family.
Gratuity Payment to Legal Heirs
Lastly, the second proviso to section 4(1) of the Act clearly states that in the absence of a nomination by the employee, the gratuity shall be payable to the legal heirs of the employee, which includes a minor as well.
Therefore, the statement made by the HR is completely incorrect as neither age nor marital status in the case of a female is a criterion to be a nominee or a legal heir of the employee under the Act.
From India, Salem
Acknowledge(2)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Legal heirs and not nominee alone entitled to terminal benefits - Madras HC 8.9.2016.pdf
Gratuity Form I.doc