Respected Members,
I request your views on the following case:
1. 26-year-old male Employee joined our company in Sep 07.
2. On joining, he gave all nominee declarations in favor of his father.
3. In Mar 08, he got married (arranged marriage).
4. After marriage, he did not file any fresh nominee declarations.
5. We have on record his marriage registration certificate proof.
6. In July 2008, he died in a road accident on the spot.
7. Now his settlements/terminal benefits are all ready for:
a) Gratuity
b) EDLI
c) Personal accident Insurance
d) Payroll including leave salary, prorata pay, etc.
e) PF
f) FPF
8. On compassionate grounds, his wife has been employed in our group company. So, no company compensation is paid.
9. The widowed wife (now employed with us) came to our office staking a claim for the entire terminal benefits because:
a) Her parents paid a huge dowry + expenses on the marriage and are now in huge debts.
b) Her father-in-law demands that she shall marry her deceased husband's younger brother to retain all terminal benefits within the family, but she is not willing to.
10. Since there is no will, the Taluk Office has given a general Legal heir certificate citing three persons as legal heirs with equal shares (i.e., Father-in-law, mother-in-law, and widowed wife).
11. So her father-in-law & mother-in-law met our company demanding now that 2/3rds share of the terminal benefits and that the widowed wife shall be paid only 1/3rd share only.
How to pay each of these terminal benefits above i.e., ready for:
a) Gratuity
b) EDLI
c) Personal accident Insurance
d) Payroll including leave salary, prorata pay, etc.
e) PF
f) FPF payments.
We cannot fully pay as per the legal heir certificate because the deceased employee's wife is continuously demanding a 100% share for her.
Please advise urgently.
K. Sankarasubramanian/9840093176
From India, Madras
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I request your views on the following case:
1. 26-year-old male Employee joined our company in Sep 07.
2. On joining, he gave all nominee declarations in favor of his father.
3. In Mar 08, he got married (arranged marriage).
4. After marriage, he did not file any fresh nominee declarations.
5. We have on record his marriage registration certificate proof.
6. In July 2008, he died in a road accident on the spot.
7. Now his settlements/terminal benefits are all ready for:
a) Gratuity
b) EDLI
c) Personal accident Insurance
d) Payroll including leave salary, prorata pay, etc.
e) PF
f) FPF
8. On compassionate grounds, his wife has been employed in our group company. So, no company compensation is paid.
9. The widowed wife (now employed with us) came to our office staking a claim for the entire terminal benefits because:
a) Her parents paid a huge dowry + expenses on the marriage and are now in huge debts.
b) Her father-in-law demands that she shall marry her deceased husband's younger brother to retain all terminal benefits within the family, but she is not willing to.
10. Since there is no will, the Taluk Office has given a general Legal heir certificate citing three persons as legal heirs with equal shares (i.e., Father-in-law, mother-in-law, and widowed wife).
11. So her father-in-law & mother-in-law met our company demanding now that 2/3rds share of the terminal benefits and that the widowed wife shall be paid only 1/3rd share only.
How to pay each of these terminal benefits above i.e., ready for:
a) Gratuity
b) EDLI
c) Personal accident Insurance
d) Payroll including leave salary, prorata pay, etc.
e) PF
f) FPF payments.
We cannot fully pay as per the legal heir certificate because the deceased employee's wife is continuously demanding a 100% share for her.
Please advise urgently.
K. Sankarasubramanian/9840093176
From India, Madras
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Dear Sankar,
The case is not at all complex.
1) Even if the deceased has not submitted the Nominee name change, it doesn't matter. The Marriage Registration proof will do. So she becomes the beneficiary of PF, EDLI, Insurance, etc. His wife becoming the undeclared Nominee overrides all the previous nominee declarations given by him. Marriage Reg certificate is okay.
2) We cannot take the dowry or 'seer varisai' into account, as they are private matters. So in-laws or parents have no need to explain them to you. The claim is between you and the employee (nominee) only.
3) Remarrying someone is her choice and even if she marries the husband's brother, we cannot infringe. But the benefits will reach her in full.
4) You can equate the EL, SL, and other leave pays that can be encashed. Gratuity can be paid in the event of death or disablement.
5) If he possesses a credit card or ATM-Debit card, you can help her in getting accident compensation up to 2 lakhs. The Credit card has this coverage in the fee. Coverage varies from bank to bank.
6) Your company has given a job to her on compassionate grounds. Even then the full/final settlement available with you has to go to her in full.
Please make it a point to get a new nomination letter from any employee (Male/Female) who gets married after joining the company. Strictly speaking, your HR department should have demanded that. Anyway, henceforth you may follow this procedure.
Definitely take the nomination declaration from his wife who is going to give a new nominee. If possible, can you mail me the settlement sheet worked out by you for her? Let me have a look into it.
Contact me at https://www.citehr.com/misc.php?do=email_dev&email=Y2hhbmRydXNlbHZhQH lhaG9vLmNvbQ== in case you have doubts.
Regards,
Chandru
Manager-HR
Chennai
From India, Madras
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41The case is not at all complex.
1) Even if the deceased has not submitted the Nominee name change, it doesn't matter. The Marriage Registration proof will do. So she becomes the beneficiary of PF, EDLI, Insurance, etc. His wife becoming the undeclared Nominee overrides all the previous nominee declarations given by him. Marriage Reg certificate is okay.
2) We cannot take the dowry or 'seer varisai' into account, as they are private matters. So in-laws or parents have no need to explain them to you. The claim is between you and the employee (nominee) only.
3) Remarrying someone is her choice and even if she marries the husband's brother, we cannot infringe. But the benefits will reach her in full.
4) You can equate the EL, SL, and other leave pays that can be encashed. Gratuity can be paid in the event of death or disablement.
5) If he possesses a credit card or ATM-Debit card, you can help her in getting accident compensation up to 2 lakhs. The Credit card has this coverage in the fee. Coverage varies from bank to bank.
6) Your company has given a job to her on compassionate grounds. Even then the full/final settlement available with you has to go to her in full.
Please make it a point to get a new nomination letter from any employee (Male/Female) who gets married after joining the company. Strictly speaking, your HR department should have demanded that. Anyway, henceforth you may follow this procedure.
Definitely take the nomination declaration from his wife who is going to give a new nominee. If possible, can you mail me the settlement sheet worked out by you for her? Let me have a look into it.
Contact me at https://www.citehr.com/misc.php?do=email_dev&email=Y2hhbmRydXNlbHZhQH lhaG9vLmNvbQ== in case you have doubts.
Regards,
Chandru
Manager-HR
Chennai
From India, Madras
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Dear Sankarasubramanian,
As I can see from the data presented by you, the employee completed 10 months of service. He filed nominations in favor of his father at the time of joining, which is legitimate. He could not revise nominations before his death in a road accident. Normally, the employer requires a "Succession Certificate," which is issued by Revenue authorities after due process of calling objections, etc.
As regards the settlement of benefits, we need to understand the method from each act/rules. Regarding gratuity, the employer needs to deposit the gratuity liability within one month with the "Controlling officer" in case of a dispute. The local DLC would in all probability be the controlling officer. They would resolve the dispute in terms of the applicable law and release the payment to the rightful claimant. See section 7(4) of the Payment of Gratuity Act 1972, which is enclosed.
From India, Changanacheri
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As I can see from the data presented by you, the employee completed 10 months of service. He filed nominations in favor of his father at the time of joining, which is legitimate. He could not revise nominations before his death in a road accident. Normally, the employer requires a "Succession Certificate," which is issued by Revenue authorities after due process of calling objections, etc.
As regards the settlement of benefits, we need to understand the method from each act/rules. Regarding gratuity, the employer needs to deposit the gratuity liability within one month with the "Controlling officer" in case of a dispute. The local DLC would in all probability be the controlling officer. They would resolve the dispute in terms of the applicable law and release the payment to the rightful claimant. See section 7(4) of the Payment of Gratuity Act 1972, which is enclosed.
From India, Changanacheri
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Dear Chandru,
Both suggestions are well described and helpful, but is there any provision wherein all previous nominations are overridden by the fact that the deceased got married and could not change the nomination? According to which law is it permissible? Is it the Succession Act, or does each individual act define the nomination?
From India, Pune
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Both suggestions are well described and helpful, but is there any provision wherein all previous nominations are overridden by the fact that the deceased got married and could not change the nomination? According to which law is it permissible? Is it the Succession Act, or does each individual act define the nomination?
From India, Pune
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Dear Mukesh,
In all government organizations, this process is followed.
In India, owing to the non-prevalence in the name change for nomination soon after marriage (legally), this rider option is automatically made into effect. If the employee is unmarried, his settlement goes to his declared nominee (father/mother/brother, etc.) or any legal heir in succession by default.
That is the reason why Marriage Registration is mandatory. This alone can help the spouse to get the benefits without trouble. In the absence of Marriage Registration, a lady cannot easily establish the legal power of a nominee of the deceased. Though wedding photos or video will do good; legal certification is a must.
Just imagine what would happen if the husband dies without redefining the nomination after marriage? This is the reason why HR has to insist on Marriage Reg Cert, and also Fresh Nomination from the man after marriage. So the process followed in government org is absolutely right.
As per the Nomination and Labour Welfare Laws, "it is pertinent to note that while an employee has family, nomination in favor of an outsider (including Mother, Sister, and Brother) is void. The rightful claimants to the sum under a policy or scheme or the share in the property as the case may be, are the LEGAL HEIRS OF THE DECEASED, AND NOT THE NOMINEES."
Hope this satisfies your query.
Regards,
Chandru
From India, Madras
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In all government organizations, this process is followed.
In India, owing to the non-prevalence in the name change for nomination soon after marriage (legally), this rider option is automatically made into effect. If the employee is unmarried, his settlement goes to his declared nominee (father/mother/brother, etc.) or any legal heir in succession by default.
That is the reason why Marriage Registration is mandatory. This alone can help the spouse to get the benefits without trouble. In the absence of Marriage Registration, a lady cannot easily establish the legal power of a nominee of the deceased. Though wedding photos or video will do good; legal certification is a must.
Just imagine what would happen if the husband dies without redefining the nomination after marriage? This is the reason why HR has to insist on Marriage Reg Cert, and also Fresh Nomination from the man after marriage. So the process followed in government org is absolutely right.
As per the Nomination and Labour Welfare Laws, "it is pertinent to note that while an employee has family, nomination in favor of an outsider (including Mother, Sister, and Brother) is void. The rightful claimants to the sum under a policy or scheme or the share in the property as the case may be, are the LEGAL HEIRS OF THE DECEASED, AND NOT THE NOMINEES."
Hope this satisfies your query.
Regards,
Chandru
From India, Madras
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Please let me know that if any worker dies while on service, are his/her heirs eligible for gratuity based on the years of service or the entire service period?
For example:
Date of Joining of Worker: 01.07.2001
Date of Expiry: 30.06.2010
Are his legal heirs entitled to a gratuity for ten years of service or for the full service period?
From India, Guntur
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For example:
Date of Joining of Worker: 01.07.2001
Date of Expiry: 30.06.2010
Are his legal heirs entitled to a gratuity for ten years of service or for the full service period?
From India, Guntur
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Please let me know if a worker dies while in service, are their heirs eligible for gratuity based on the years of service or the entire service period?
For example:
Date of Birth: 01.07.1966
Date of Worker's Joining: 01.07.1990
Deceased on: 30.06.2010
Date of Retirement: 30.06.2024
Are his legal heirs eligible for a ten-year gratuity or for 34 years? Please clarify.
From India, Guntur
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For example:
Date of Birth: 01.07.1966
Date of Worker's Joining: 01.07.1990
Deceased on: 30.06.2010
Date of Retirement: 30.06.2024
Are his legal heirs eligible for a ten-year gratuity or for 34 years? Please clarify.
From India, Guntur
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Sir,
The case with my sister involves different points:
1) She is an employer, and her husband has not changed his mother's name after marriage, but he updated the records to reflect the marriage date.
2) His parents are running a business like Kiran Shop and living with their eldest son. Now, they are stating that their eldest son will not care for them, and they are requesting a 50% share. They have also received the insurance amount, with the mother listed as the nominee. My sister has a 3-month-old child. Please provide her with the right decision for her future.
From India, Chennai
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The case with my sister involves different points:
1) She is an employer, and her husband has not changed his mother's name after marriage, but he updated the records to reflect the marriage date.
2) His parents are running a business like Kiran Shop and living with their eldest son. Now, they are stating that their eldest son will not care for them, and they are requesting a 50% share. They have also received the insurance amount, with the mother listed as the nominee. My sister has a 3-month-old child. Please provide her with the right decision for her future.
From India, Chennai
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