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What is the nominee procedure in a company for full & final settlement
02-Dec-2023 (In Labour & Service Law)
1. How the Company’s liability would be decided for the payment of full and final settlement amount (excluding PF) and Gratuity payable at the time of unfortunate death of its employees in the following scenario: (a) Employees at the time of joining service nominate their parents or brother/sister (majors). Post they being married, they do not change the nomination. After their unfortunate death, Spouse (as a legal heir) issues legal notice against disbursal of amount to the nominee. Parents or the brother/sister of the deceased want to handover only some % of amount to the daughter-in-law. (b) There is no nomination made or the ones who are nominated have also expired. Should the Company also insist on a succession/legal heir certificate in such cases from the person to whom the claim amount is being disbursed?
Firstly, the company followed unfair labour practice by asking you to resign. If the company wanted to reduce its staff, it should have retrenched you as per law and pay the full and final along with the retrenchment letter instead of asking you to resign, which amounts to forcible resignation.
That is the way prescribed under the law for retrenching the staff. Any how, now your grievance is limited only to receive the full and final settlement amount and if the employer is refusing it on frivolous grounds, you may file a complaint before the Assistant Labour Commissioner of your area.
The Assistant Labour Commissioner will initiate conciliation proceedings and call the H.R. Department Head to his office and in your presence, he will ensure that the employer pays your final settlement. If any small amount is the bone of contention, that can be reduced out of your full and final settlement and that amount should not be a reason for them to refuse you the final amount altogether.
That is the way prescribed under the law for retrenching the staff. Any how, now your grievance is limited only to receive the full and final settlement amount and if the employer is refusing it on frivolous grounds, you may file a complaint before the Assistant Labour Commissioner of your area.
The Assistant Labour Commissioner will initiate conciliation proceedings and call the H.R. Department Head to his office and in your presence, he will ensure that the employer pays your final settlement. If any small amount is the bone of contention, that can be reduced out of your full and final settlement and that amount should not be a reason for them to refuse you the final amount altogether.
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Adv. Siddhant Sharma
Delhi | 500+ Answers
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Get complete legal details of full and final settlement along with the format of the settlement letter with this Labour Service Law Guide.
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