Rule 45: Payment of undisbursed dues to nominees in case of death of employee

Finin2min analysis — operative rule mechanics

Full notified text — Rule 45

45. Payment of undisbursed dues to nominees in case of death of employee :–– (1) (a) In
 pursuance of clause (a) of sub-section (1) of section 44, every employee shall make a declaration in
 Form-VII in physical form or electronically, nominating a person conferring the right to receive the
 amount that may stand in the credit of the employee on the event of death, before that amount standing
 to the credit of such employee has become payable or where the amount has become payable, before
 payment has been made.

 (b) If the employee has a family at the time of making nomination, the nomination shall be in favour
 of the spouse or the spouse in preference followed by one or more members of the family:

       Provided that nomination made by an employee having a family in favour of a person other than
 member of the family shall be invalid:

        Provided further that a fresh nomination towards the spouse of the employee shall be made by
 the employee on marriage and any nomination made before such marriage shall be deemed to be invalid.

 (c) Where the nomination is wholly or partly in favour of a minor, the employee may appoint a major
 person of the family, to be the guardian of the minor nominee or where there is no major person in the
 family, the employee may by discretion, appoint any other person to be the guardian of the minor
 nominee.

 (d) If the employee nominates more than one member, the nomination shall specify the amount or
 share payable to each of the nominees at employee’s own discretion so as to cover the whole of the
 amount that may stand to the credit of the employee.
 (2) Where any amount payable to an employee under the Code is due after the death or on account of
 whereabouts not being known of the employee and the amount could not be paid to the nominee of
 the employee until the expiry of three months from the date the amount had become payable, then, such
 amount shall be deposited by the employer with the Deputy Chief Labour Commissioner (Central) having
 jurisdiction, who shall disburse the amount to the person nominated by the employee after ascertaining
 the identity o f the employee within two months of the date on which the amount was so deposited.

Application and evidence

1. Primary statutory test — :–– (1) (a) In pursuance of clause (a) of sub-section (1) of section 44, every employee shall make a declaration in Form-VII in physical form or electronically, nominating a person conferring the right to receive the amount that may stand in the credit of the employee on the event of death, before that amount standing to the credit of such employee has become payable or where the amount has become payable, before…
2. Additional operative limb — (b) If the employee has a family at the time of making nomination, the nomination shall be in favour of the spouse or the spouse in preference followed by one or more members of the family:
3. Qualification / exception to test — Provided that nomination made by an employee having a family in favour of a person other than member of the family shall be invalid:
4. Numerical or timing control — (2) Where any amount payable to an employee under the Code is due after the death or on account of whereabouts not being known of the employee and the amount could not be paid to the nominee of the employee until the expiry of three months from the date the amount had become payable, then, such amount shall be deposited by the employer with the Deputy…
5. Code Section mapping — 44. Read the mapped provision together with this text rather than treating the concordance as a substitute for it.
6. Prescribed-form link recorded in the corpus — VII. Confirm the current notified form/version before filing.

Cross-references & prescribed forms

Worked example

Q&A — Rule 45

Primary sources