Dear All, One of our employees has passed away due to a heart attack at his residence. He was not married, and we are unsure of who he designated as his nominee. His father is a retired government officer without a pension, and his mother is a housewife. He was the sole breadwinner for his family and has one younger brother who is currently unemployed.

Legal considerations for statutory dues and settlement

We need to determine, from a legal standpoint, to whom we should release all his statutory dues and settlement. One option is for the family to obtain an Heir certificate to ensure clarity legally and prevent any potential future disputes or claims from other family members.

Please confirm if there are any alternative options that we should consider, ensuring they are legally sound.

Best Regards, Sunil G

From India, Pune
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Dear Sunil,

What did he write for the EPF and ESI declaration or Gratuity nomination? You can call and discuss with their parents for the dues. If the declaration is not there, then go for a legal heir certificate (which is always useful for the future).

From India, Hyderabad
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KK!HR
1593

Dear Sunil,

As suggested by VVK Sir, there is nothing wrong in relying on these nominations. Obtaining a legal heirship certificate is expensive, time-consuming (taking at least 6 months to one year), and cumbersome. An alternative approach could be to open a joint account for all three survivors in any bank and deposit all dues there.

Regarding gratuity, the amount can be deposited with the ALC/Controlling Authority under the PGA 1973, who is authorized to disburse the funds.

Thank you.

From India, Mumbai
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PB
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Better option to deposit statutory whole amount at concern presiding officer at least in case of workmen . We are not appropriate authority to find legal heir.
From India, undefined
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Just a Suggestion...In order not to have any litigation in future where employer will be made a party will it be foolproof if directed to take SUCCESSION CERTIFICATE.
From India, Hyderabad
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KK!HR
1593

Gratuity and Succession Certificate

As regards gratuity, there is no need for a succession certificate, as the Payment of Gratuity Act (PGA) is a complete code in itself, empowering the controlling authority to decide the beneficiary. It is less costly, time-consuming, and cumbersome compared to a succession certificate.

Under paragraph 70 of the EPF Scheme, the accumulated PF amount shall become payable to the members of the family in equal share and could be relied upon. However, it is generally seen that in such matters, it is easier to insist on a succession certificate, though it is not desirable from the point of view of the bereaved family.

From India, Mumbai
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