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Nominee Tips: What is the process of making a nominee for gratuity, so that there is no dispute in the family..

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Employees get gratuity after working for a long time in any institution. 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 a gratuity.

But, if an employee dies untimely during the job, then the gratuity amount is given to his nominee. Let us know how a nominee is chosen for gratuity.

Why is it necessary to choose a nominee?

A good lump sum amount is received as a gratuity. In case of the employee's absence, there may 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 distributed by choosing more than one nominee.

How to choose a 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 nominee?

Under the Gratuity Payment Act, of 1972, you can mainly make family members as nominees. These include wife, children, dependent parents, dependent parents-in-law, son's widow, and his children. You can also make more than one family member a nominee.

What will happen in case there is no nominee?

If the employee has not made anyone a nominee, 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 hurdles. The heir may also have to submit proper legal documents.

Process of appointing nominee

Take Form F from the HR department of your company. 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.