Gratuity Act 1972: Here’s All You Need To Know About Nomination Rules

Under the Gratuity Act, 1972, employees are only entitled for gratuity if they have completed 5 years of constant employment with a specific company or employer. However, regardless of whether the five years have been fulfilled or not, the gratuity amount will be paid to the nominee in the event of an employee's demise. Only family members can be nominated under the Gratuity Act, an employee can nominate any Indian citizen if he or she has no family members.

Under the Gratuity Act, a family of an employee is classified for a male employee as his wife, children (married or unmarried), dependent parents or dependent parents of his wife, and the widow and children of his deceased son if any. Whereas for a female employee, family refers to her husband, children (married or unmarried), dependent parents or her husband's dependent parents, and widow and children of her deceased son, if any, under the Gratuity Act 1972. To make a nomination under the rules of the Gratuity Act 1972 here's all you need to know about.

Gratuity Rules, 1972-1

The Central Government accordingly sets the following nomination rules in virtue of the authority given by sub-section (1) of section 15 of the Payment of Gratuity Act, 1972 (39 of 1972). According to the official website of labour.gov.in/

1. A nomination shall be in Form 'F' and submitted in duplicate by personal service by the employee, after taking proper receipt or by sending through registered post acknowledgment due to the employer,

• in the case of an employee who is already in employment for a year or more on the date of commencement of these rules, ordinarily, within ninety days from such date, and
• in the case of an employee who completes one year of service after the date of commencement of these rules, ordinarily within thirty days of the completion of one year of service:

Provided that nomination in Form 'F' shall be accepted by the employer after the specified period, if filed with reasonable grounds for delay, and no nomination so accepted shall be invalid merely because it was filed after the specified period.

2. Within thirty days of the receipt of nomination in Form 'F' under sub-rule (1), the employer shall get the service particulars of the employee, as mentioned in the form of nomination, verified with reference to the records of the establishment and return to the employee, after obtaining a receipt thereof, the duplicate copy of the nomination in form 'F' duly attested either by the employer or an officer authorised in this behalf by him, as a token of recording of the nomination by the employer and the other copy of the nomination shall be recorded.

3. An employee who has no family at the time of making a nomination shall, within ninety days of acquiring a family submit in the manner specified in sub-rule (1), a fresh nomination, as required under sub-section (4) of section 6, duplicate in Form 'G' to the employer and thereafter the provisions of sub-rule (2) shall apply mutatis mutandis as if it was made under sub-rule (1).

4. A notice of modification of a nomination, including cases where a nominee predeceases an employee, shall be submitted in duplicate in Form 'H' to the employer in the manner specified in sub-rule (1), and thereafter the provisions of sub-rule (2) shall apply mutatis mutandis.

5. A nomination or a fresh nomination or a notice of modification of nomination shall be signed by the employee or, if illiterate, shall bear his thumb impression, in the 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.

6. A nomination, fresh nomination or notice of modification of nomination shall take effect from the date of receipt thereof by the employer.

Source: https://labour.gov.in/