Industrial Relations And Labour Laws
At present, in my monthly CTC Ex-gratia/bonus component is included which is retained by the company and the accumulated amount is paid once in a year during Diwali. if someone leaves the company can the amount of ex-gratia be lapsed or it should be paid along with F&F?
As per my understanding, if the Ex-gratia component is included in Monthly CTC it means that it is considered to be a committed amount to the employee and must be paid irrespective of loss/profit of the company and the period of service tenure of the employee. e.g. XYZ's monthly CTC is 50000/- which includes 1500/- Ex-gratia which is being retained by the company on monthly basis and the accumulated amount (from April to March) being refunded every Diwali . if XYZ serves the company for 3 years and leaves in the month of May, can the amount retained from April last year to May current year towards Ex-gratia be forfeited giving an excuse that the employee is not available till diwali? please advise!!
12th January 2015 From India, Mumbai
Your Monthly Salary is above Rs.10000/-. Hence you are not eligible for any Bonus.
For ex-gratia it depends on the company's Policy and the Ex-gratia is paid for the employees based on their previous performance with expectation to perform in future also. In your case the Ex-gratia component the first may be good enough to consider for payment of Ex-gratia but as you have resigned there are chances for refusal of the same. It depends on your company's Policy.
13th January 2015 From India, Kumbakonam
13th January 2015 From India, Kannur