Who can, who cannot be nominated for Gratuity nomination?

  1. Who can be and who cannot be nominated as part of Gratuity nomination?
  2. Does it need to be revised when employee marries?

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

Bhuvana Anand