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one side you are saying its a voluntary payment
other side you are saying that payment should be made for ex gratia
Dear Clearly its a voluntary payment so employee have not any legal right for this, so its the wish of employer either pay or not
i think thread should be closed here
25th June 2015 From India, Faridabad
My comment about it being basically a voluntary payment and in the case posted by querist-it should be paid was based on the fact that querist had stated all other employees were being paid ex gratia.
Keeping that fact in mind-advice was tendered that though it is voluntary in this case it should be paid.
i hope this clears things.
25th June 2015 From India, Pune
Ex gratia is a bonus. It's intended to reward someone who contributed to the success of business. It is also essentially intended for retention of employees
In view of the above it is the decision of the management as to what they wish to do. If it is that he had a serious contribution then it would be fair. Specially if they intend to keep a good repot for future
If not, then what's the use of giving a bonus to someone who has already decided his future is not with you
25th June 2015 From India, Mumbai
25th June 2015 From India, New Delhi
26th June 2015 From Pakistan, Karachi
Ex-gratia, like Saswata Banerjee pointed-out, is another form of Bonus.
From what you mentioned, it looks like that it's NOT the employee who IS ASKING FOR IT but the Company seems to be in 2 minds whether to pay or not--pl reconfirm on this aspect.
And any Ex-gratia/Bonus is paid for the PAST PERFORMANCE--1 year in your case. And this employee has been on the rolls as well as attending office & performing during the past 1 year. You also mentioned that the Ex-gratia is being paid THIS month & this employee is being relieved NEXT month. So, as on the day the Ex-gratia is being paid, he will still be on the permanent rolls of the Company. Goes without saying that he deserves being paid.
If you wish to avoid paying the ex-gratia just because he has resigned, there MAY NOT be any legal issues, but what you would surely be conveying the 'perception' to the other employees is that "this Company can just use you".
Like other members pointed-out, Ex-gratia is BOTH for good performance in the recent past AS WELL AS a retention tool for the future--NOT just for the individual, but a company-wide tool.
28th June 2015 From India, Hyderabad