What are the rules relating to nomination by an employee under the payment of Gratuity Act, 1972.

Nomination by an employee under the Payment of Gratuity Act, 1972: The employee has the right to appoint a nominee who can legally recover the amount of gratuity in the event of death of an employee. Section 6 contains the legal provisions in this regard which are given below :

  1. Every employee who has completed one year of service, shall make a nomination within 30 days of completion of one year of service [Sec. 6(1)].
  2. An employee has a right to distribute the amount of gratuity payable to him amongst more than one nominee [Sec. 6(2)].
  3. If an employee has a family at the time making a nomination, the nomination shall be made in favor of one or more members of his family. Any nomination made by such employee in favor of a person who is not a member of his family shall be void [Sec. 6(3)].
  4. It at the time of making a nomination the employee has no family, the nomination may be made in favor of any person. If the employee subsequently acquires a family, such nomination shall forthwith become invalid and the employee shall make within 90 days a fresh nomination in favor of one or more members of his family. [Sec. 6(4)].
  5. A nomination may be modified by an employee at any time after giving to his employer a written-notice of his intention to do so [Sec. 6(5)].
  6. If a nominee predeceases the employee, the interest of the nominee shall revert to the employee who shall make a fresh nomination, in-the pscribed form, in respect of such interest [Sec. 6(6)].
  7. Every nomination, fresh nomination or alteration of nomination, as the case may be, shall be sent by the employee to his employer, who shall keep the safe in his safe custody [Sec. 6 (7)].

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