The Importance of Accurate Nomination Forms
As HR professionals, we are responsible for obtaining the nomination forms for ESI/PF/Gratuity accurately from employees. Additionally, fresh nominations must be obtained from employees who have gotten married, divorced, or in the unfortunate event of a nominee's passing.
These specific procedures may not be explicitly outlined in the company's policy, but it is the HR's duty to educate employees on these requirements. The significance of correct and updated nominations often becomes apparent only in the event of the employee's demise.
Legal Considerations for Nominees
According to the law, for unmarried employees, dependent parents are typically the nominees. However, after marriage, the nominee changes to the spouse, even if the nomination form remains unchanged, as the spouse becomes the legal heir.
There have been cases where, post the employee's death, the spouse received the benefits while the dependent parents were left without. Conversely, situations exist where the dependent parents benefited, and the spouse was disadvantaged.
HR's Role in Ensuring Fair Distribution
Despite occasional adherence to these protocols, HR may bear the responsibility for any oversights. Properly educating employees on the importance of nominations could lead to a fair distribution, such as 50:50, 75:25, 60:40, or other suitable arrangements.
I urge all HR members to inform employees about the significance of nominations in statutory forms. Please also share any experiences you have encountered regarding nominations in PF/ESI/Gratuity in cases of an employee's demise.
The primary objective here is to ensure that all dependents of the deceased employee benefit equitably without any grievances.
From India, Mumbai
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193As HR professionals, we are responsible for obtaining the nomination forms for ESI/PF/Gratuity accurately from employees. Additionally, fresh nominations must be obtained from employees who have gotten married, divorced, or in the unfortunate event of a nominee's passing.
These specific procedures may not be explicitly outlined in the company's policy, but it is the HR's duty to educate employees on these requirements. The significance of correct and updated nominations often becomes apparent only in the event of the employee's demise.
Legal Considerations for Nominees
According to the law, for unmarried employees, dependent parents are typically the nominees. However, after marriage, the nominee changes to the spouse, even if the nomination form remains unchanged, as the spouse becomes the legal heir.
There have been cases where, post the employee's death, the spouse received the benefits while the dependent parents were left without. Conversely, situations exist where the dependent parents benefited, and the spouse was disadvantaged.
HR's Role in Ensuring Fair Distribution
Despite occasional adherence to these protocols, HR may bear the responsibility for any oversights. Properly educating employees on the importance of nominations could lead to a fair distribution, such as 50:50, 75:25, 60:40, or other suitable arrangements.
I urge all HR members to inform employees about the significance of nominations in statutory forms. Please also share any experiences you have encountered regarding nominations in PF/ESI/Gratuity in cases of an employee's demise.
The primary objective here is to ensure that all dependents of the deceased employee benefit equitably without any grievances.
From India, Mumbai
Acknowledge(1)Amend(0)
Importance of Nomination Forms in PF, Gratuity, and Insurance Acts
It is very important to obtain nomination forms under the PF Act, Gratuity Act, Insurance Act, etc., since, in the case of the death of the beneficiary, the nominee will receive the money without many formalities. However, it may be noted that legally there is a difference between a nominee and a legal heir. The Supreme Court has held that the nominee is just a trustee for the deceased's estate, and the legal heir is the real owner of the money. An article in this regard is attached for your information.
Thanks
From India, Malappuram
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It is very important to obtain nomination forms under the PF Act, Gratuity Act, Insurance Act, etc., since, in the case of the death of the beneficiary, the nominee will receive the money without many formalities. However, it may be noted that legally there is a difference between a nominee and a legal heir. The Supreme Court has held that the nominee is just a trustee for the deceased's estate, and the legal heir is the real owner of the money. An article in this regard is attached for your information.
Thanks
From India, Malappuram
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HR Manual (Employee Hand Book).doc