Gratuity is paid to the employee by his employer, where his services are terminated due to any reason in his lifetime, but after the death of the said employee, the earned gratuity is to be paid to his successors and to avoid any type of complications and controversies, the provision of the nomination by the employee to get the gratuity, in case of his death is made. The provisions are as below:
Nomination by the employee after the completion of 1 year of service
Each employee, who has completed one year of service, shall make, within such time, in such form and such manner, as may be prescribed, nomination.
Distribution of gratuity amount
An employee may, in his nomination, distribute the amount of gratuity payable to him under this Act amongst more than one nominee.
Nomination in favor of one or more family members
If an employee has a family at the time of making a nomination, the nomination shall be made in favor of one or more members of his family, and any nomination made by such employee in favor of a person who is not a member of his family shall be void.
Nomination by the employee having no family/ subsequently acquiring family
If at the time of making a nomination the employee has no family, the nomination may be made in
favor of any person or persons but if the employee subsequently acquires a family, such nomination shall forthwith become invalid and the employee shall make, within such time as may be prescribed, a fresh nomination in favor of one or more members of his family.
Modification in nomination by the employee
A nomination may be modified by an employee at any time, after giving to his employer a written notice of his intention to do so.
In the case of death of the nominee
If a nominee predeceases the employee, the interest of the nominee shall revert to the employee who shall make a fresh nomination, in the prescribed form, in respect of such interest.
Nomination to kept by the employer
Every nomination, fresh nomination or alteration of nomination, as the case may be, shall be sent by the employee to his employer, who shall keep the same in his safe custody.
Procedure for Nomination:
1. Nomination form to be submitted in duplicate to the employer
A nomination shall be filled in Form ‘F’ and will be submitted in duplicate by personal service by the employee, after taking proper receipt or by sending through registered post acknowledgment due to the employer.
2. Submission of the form
In case of an employee who is already in employment for a year or more on the date of commencement of these rules, ordinarily, within 90 days from such date, and in case of an employee who completes 1 year of service after the date of commencement of these rules, ordinarily within 30 days of the completion of 1 year of service.
3. Acceptance of form beyond the specified time
Form ‘F’ filed with reasonable grounds for the delay, shall be accepted by the employer after the specified time and no nomination so accepted shall be invalid because of the reason that it was filed after the specified period. Within 30 days of the receipt of nomination in Form ‘F’, the employer shall get the service particulars of the employee, as mentioned in the form, verified with reference to the records of the establishment and return one copy to the employee, after obtaining a receipt thereof, the duplicate copy of Form ‘F’ duly attested by the employer or his authorized signatory and the other one shall be recorded for future in his office.
4. Period for submission of the fresh nomination after acquiring a family
If an employee has no family at the time of his first nomination, then within 90 days of acquiring a family, he will submit a fresh nomination in duplicate on Form ‘G’ to the employer.
5. Notice of modification of nomination
Notice of modification of a nomination, including the case where the nominee predeceases an employee, shall be submitted in duplicate in Form ‘H’ to the employer. In both cases as in (3) & (4)mentioned above.
6. Nomination duly signed by the employee
A nomination or a fresh nomination or a notice of modification of nomination shall be duly signed by the employee and if he is illiterate, shall bear the thumb impression of the employee in presence of two witnesses, who shall also sign a declaration to that effect in the nomination, fresh nomination or notice of modification of nomination, as the case may be, and it shall take effect from the date of receipt thereof by the employer.