Who can, who cannot be nominated for Gratuity nomination?

Ask the Community Statutory Compliance
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  1. Who can be and who cannot be nominated as part of Gratuity nomination?
  2. Does it need to be revised when employee marries?
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Hi Anisha,

  • The employee, who has completed one year of service shall make the nomination.

  • He/she may in the nomination, distribute the amount of gratuity payable to him/her amongst more than one nominee.

  • If an employee has a family at the time of making a nomination, the nomination shall be made in favour of one or more members of his / her family, and any nomination made by such employee in favour of a person who is not a member of his family shall be void.

  • If at the time of making a nomination the employee has no family, the nomination may be made in favour 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 in the prescribed manner, a fresh nomination in favour of one or more members of his/her family.

  • A nomination may, subject to the provisions mentioned above, be modified by an employee at any time, after giving to his/her employer a written notice in the manner prescribed, of his/her intention to do so.

  • 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.

  • Every nomination, fresh nomination or alteration of nomination, as the case may be, shall be sent by the employee to his/her employer, who shall keep the same in safe custody.

Reference - Section 6 of the Payment of Gratuity Act and Rules.

For more details - The Payment of Gratuity Act,1972

Regards,
Bhuvana Anand

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