An employee has a family at the time of making a nomination but nominates his friend as the sole…

Section 54 of the Code on Social Security, 2020 (formerly s.6(3) of the Payment of Gratuity Act, 1972) requires an employee who has a family at the time of making a nomination to nominate one or more members of his family, and makes a nomination in favour of a person outside the family void, so the employer's acceptance, the friend's dependence, or lack of challenge does not validate it.