Gratuity nomination: Who you can, cannot nominate and how to do it
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Synopsis
Here is a look at what the law states about, who can be nominated in case of gratuity, how the nomination must be made and when a nominee will not be entitled to receive the gratuity proceeds.
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An employee can nominate only 'family members' and if there is no 'family' member, only then can he/she nominate anyone else.
If you are a salaried person, it is important to make sure you nominate the right beneficiaries for your gratuity proceeds.
Usually, gratuity is payable to an employee if he/she leaves an organisation after the completion of five years of continuous service. However, in case of a death of an employee, the gratuity amount will be payable to the nominee irrespective of whether the five years have been completed or not.