Hybrid Consult

Introduction

The administration and disbursement of a deceased employee’s terminal benefits, including the attendant problems and conflicts, is a familiar matter at the workplace. This challenge is very common in Nigeria due to a combination of many factors including polygamy, intestacy, cultural practices, multiplicity and complexity of Administration of Estate laws in Nigeria.

In law, a deceased person’s estate is comprised of the totality of his/her assets including employment benefits such as pension, gratuity, group life insurance benefits, earned allowances and bonuses e.t.c. When an employee dies, it is not uncommon for the Human Resources Department to witness cases of competing interests and claims to the deceased’s terminal benefits. In a society like ours where our culture and sometimes religion permit polygamy, it is not uncommon to see different persons (claiming to be the deceased kept wives and children, younger wives, relations and dependants e.t.c) writing to the employer of the deceased, and laying claims to the deceased employees’ terminal benefits. These conflicting claims often create a dilemma for the HR personnel who want to ensure that the deceased’s terminal benefits go to the rightful beneficiaries.

There is also some confusion among the HR practitioners as to the legal rights and limitations of a person named by the deceased employee as a Beneficiary vis-à-vis a Next of Kin. It is important that the human resources personnel of every organisation understand the principles of the law and practice of administration of estate in Nigeria particularly in the context of deceased employees terminal benefits. This is because any error in the process is capable of exposing the company to very costly but avoidable litigations including the attendant costs and reputational damage.