Dear Seniors, Please reply what is 'Ex-Gratia'? How it is useful for employee and employer ? With Due Regards Tribikram
From India, Delhi
1From India, Delhi
Dear Tribikram,
Ex-gratia is Latin (lit. 'by favour') and is most often used in a legal context. When something has been done ex gratia, it has been done voluntarily, out of kindness or grace. In law, an ex gratia payment is a payment made without the giver recognising any liability or legal obligation.
Most of the cases Ex-gratia is paid along with annual bonus, since the Payment of Bonus Act, puts a cap on 20% bonus to employees, the employer and employee agree to pay a higher amount than 20%, and coined a new term of ex-gratia, which is paid along with Bonus.
Rgds,
Suresh Ramalingam
Consultant - Compliance
From India, Mumbai
Ex-gratia is Latin (lit. 'by favour') and is most often used in a legal context. When something has been done ex gratia, it has been done voluntarily, out of kindness or grace. In law, an ex gratia payment is a payment made without the giver recognising any liability or legal obligation.
Most of the cases Ex-gratia is paid along with annual bonus, since the Payment of Bonus Act, puts a cap on 20% bonus to employees, the employer and employee agree to pay a higher amount than 20%, and coined a new term of ex-gratia, which is paid along with Bonus.
Rgds,
Suresh Ramalingam
Consultant - Compliance
From India, Mumbai
Dear Friends,
I fully agree with Mr.Suresh Ramalingam. But there is an additional information. For the industries like service industries (Hospitals), social work orgs, where there is " No profit No loss " concept, they will give ex-gratia for the employees, because they are not covered under Payment of Bonus Act.
For the payment of ex-gratia, there is no cieling and also the % may get varied from year to year and is purely descretion of the management.
Mangai
From India, Chennai
I fully agree with Mr.Suresh Ramalingam. But there is an additional information. For the industries like service industries (Hospitals), social work orgs, where there is " No profit No loss " concept, they will give ex-gratia for the employees, because they are not covered under Payment of Bonus Act.
For the payment of ex-gratia, there is no cieling and also the % may get varied from year to year and is purely descretion of the management.
Mangai
From India, Chennai
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