Gratuity Nominee Process: It is important to choose a nominee for gratuity. This helps the family members to get the gratuity amount after the death of the employee. Choosing a nominee also reduces the scope of dispute in the family regarding the distribution of the amount. The process of choosing a nominee is also quite easy. Let us know how you can select a nominee.
Employees get gratuity after working for a long time in any organization. This amount is a kind of reward for their loyalty. Gratuity is usually received after retirement, but even if you leave the job after a certain period, you will still get gratuity.
But, if an employee dies untimely during the job, the gratuity amount is given to his nominee. Let us know how to choose a nominee for gratuity.
Why is it important to choose a nominee?
A lump sum amount is received as gratuity. In case of the employee’s death, there can be a dispute in the family regarding this amount. To avoid this, it is very important to appoint a nominee. You can also decide how the gratuity amount will be divided by choosing more than one nominee.
How to choose gratuity nominee?
All employees have the right to choose their nominee. You can choose your nominee using Form F. You have to submit it to your company. You can make one or more people as nominees. You can also change the nominee as per your wish.
Who can be made a nominee?
Under the Gratuity Payment Act, 1972, you can mainly make family members as nominees. These include wife, children, dependent parents, dependent parents-in-law, son’s widow and her children. You can also make more than one family member as nominee.
What will happen if there is no nominee?
If the employee has not nominated anyone, then in case of his death the gratuity money will be given to his legal heir. However, this may take time and there may be legal hassles. The heir may also have to submit the appropriate legal documents.
Process to appoint a nominee
You can get Form F from your company’s HR department. Some information has to be given in it. Such as the name of the nominee and his relationship. If there is more than one nominee, then who will get how much share. Then you have to sign it with a witness and submit it to the HR department or the nominated officer.
