Sub: Is their age limit to pay gratuity to the nominee
To All HR, Is there an age limit to pay gratuity (Female nominee), mother expired after 20 years of service as a teacher in an educational institute? The HR said the nominee age should be below 24 years, then the only gratuity can be paid. It is correct. Please give your valuable advice in this regard.
From India, Delhi
To All HR, Is there an age limit to pay gratuity (Female nominee), mother expired after 20 years of service as a teacher in an educational institute? The HR said the nominee age should be below 24 years, then the only gratuity can be paid. It is correct. Please give your valuable advice in this regard.
From India, Delhi
Dear Rao,
I think that the particular HR person is in dire necessity of refreshing his knowledge of the Payment of Gratuity Act,1972.
First and foremost, there is no obligation on the part of the employee to make nomination. In the absence of nomination and in the event of death of the employee while in service or otherwise before the payment of his gratuity, the gratuity automatically goes to his legal heirs.
Secondly, the term 'family' has been defined u/s 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 the 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 "
Thirdly, section 6 of the Act specifically permits the employee to nominate one or more members of the family.
Fourth and finally, the second proviso to sec.4(1) of the Act clearly states that in the absence of nomination by the employee, the gratuity shall be payable to the legal heirs of the employee which includes a minor also.
Therefore, the statement of the HR is totally wrong as neither age nor marital status in case of a female is a criterion either to be a nominee or to be a legal heir of the employee under the Act.
From India, Salem
6016I think that the particular HR person is in dire necessity of refreshing his knowledge of the Payment of Gratuity Act,1972.
First and foremost, there is no obligation on the part of the employee to make nomination. In the absence of nomination and in the event of death of the employee while in service or otherwise before the payment of his gratuity, the gratuity automatically goes to his legal heirs.
Secondly, the term 'family' has been defined u/s 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 the 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 "
Thirdly, section 6 of the Act specifically permits the employee to nominate one or more members of the family.
Fourth and finally, the second proviso to sec.4(1) of the Act clearly states that in the absence of nomination by the employee, the gratuity shall be payable to the legal heirs of the employee which includes a minor also.
Therefore, the statement of the HR is totally wrong as neither age nor marital status in case of a female is a criterion either to be a nominee or to be a legal heir of the employee under the Act.
From India, Salem
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
EPS - Wage Limit increase_01.09. 2014.pdf
SC Judgment-No obligation to excess contribution than Statutory Limit.docx
Age.xls