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of <h1>Nomination for gratuity: employees must make and may modify nominations, family nominees take priority and employer retains custody.</h1> Each employee completing one year of service must make a nomination in prescribed form and manner; failure to do so affects the mode of gratuity distribution. An employee may apportion gratuity among multiple nominees, and nominations in favour of non-family members are void if the employee had a family when making the nomination, so the operative effect is family members take priority. Where the employee has no family, nomination may be made to any person but must be replaced by a fresh nomination in favour of family members within the prescribed time if family is subsequently acquired. Nominations may be modified by written intimation; if a nominee predeceases the employee the interest reverts to the employee who must make a fresh nomination, and the employer must keep nominations in safe custody.
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