(1) Each employee who has completed one year of service shall make a nomination in the prescribed form to the employer conferring the right to receive the amount payable to him under this Act in the event of his death before the amount becomes payable, or where the amount has become payable but payment has not been made.
(2) An employee may in his nomination distribute the amount of gratuity payable to him under this Act amongst his nominees at his own discretion.
(3) If an employee has a family at the time of making a nomination, the nomination shall be in favour of one or more persons belonging to his family. Any nomination made by such employee in favour of a person not belonging to his family shall be invalid.
(4) If at the time of making a nomination the employee has no family, the nomination may be in favour of any person or persons but if the employee subsequently acquires a family, such nomination shall forthwith be deemed to be invalid and the employee shall make a fresh nomination in favour of one or more persons belonging to his family.
(5) A nomination made under sub-section (1) may, at any time, be modified by an employee after giving a written notice of his intention of doing so in the prescribed form to the employer. If the nominee predeceases the employee, the interest of the nominee shall revert to the employee who shall make a fresh nomination in respect of such interest.
6
(6) A nomination or its modification shall take effect to the extent it is valid on the date on which it is received by the employer.