There is an upper ceiling prescribed for payment of bonus i.e. 20%
Hence any employer who is willing to pay bonus over and above 20%
he pays it in the name of "ex-gratia" payment.
"Ex-gratia" (Latain) mean done, made as a favour, in absence of legal right.
In order to maintain a good harmonious industrial relations, ex gratia may be paid, if you were paying it in the previsou years. If due to financial difficulties, ex- gratia cannot be paid this year, call the employees, talk to them, convince them and request them to cooperate and assure them that ex gratia will be paid when the financial position improves.
As you correctly said There is an upper ceiling prescribed for payment of bonus i.e. 20% and lower prescribed limit for bonous is 8.33% but what i know if an employer wants to give the benefit of bonous to those employees who gets basic+DA more than 10000Rs then this benefit is called "ex-gratia".but i would like to know that what is the ceiling limit of "ex-gratia" like bonous(8.33% to 20%).
For payment of ex gratia there is no ceiling since it is not prescribed by law.
Please remember, if you pay 30% or 25% ex gratia this year, it will be demanded next year and then it will becomes a custom and a right. Be generous but be careful also.
Sir i have a question about LTA can you please help me out
My query is what i know the min working period to being eligible for LTA is 1 year(12 months) but sir if an employee has completed his 1 year(6 months as probation period and 6 months as confirmed ) will this person get LTA or not
You have to check up the of LTA in your organisation. If an employee is eligible for
LTA after completion of one year, he en entitled for LTA. Probation period is also service period. Probation period is only for assessing his suitability for the post. Since his services are confirmed he is a regular employee with service of one year.
Kindly go through the rules of LTA of your organisation once again. Also check up whether the letter confirmation says that his service period commences from the date of confirmation only.
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