Hi freinds
I just signed in to this group. Could anyone tell me if it is mandatory for the organisation to pay ex-gratia on resigning from the services.
So far, as I know the eligibity for ex-gratia in such a circumstance must be proved and must be mentioned in the appointment / confirmation letter for availing this benefit.
Now if the appointment letter speicified BONUS and after a few years the employee does not fall in the group to get bonus. The company pays ex-gratia year after year. The company also provides a pay slip confirming the payment ex-gratia. Thus this confirm the eligibility of the candidate for getting ex-gratia while leaving the company?
Could anybody throw some light on this issue?
10th November 2007 From India, Calcutta

Hr Professional
Sr. Product Executive

It is not mandatory to pay ex-gratia. It is employer's discretion to pay an amount that may be called ex-gratia or over and above bonus.
But it is purely mandatory to pay bonus to all eligible employees under the provisions of the Act.
10th November 2007 From India, Hyderabad
Dear Shantanu
In case the company specifies Bonus in the appointment letter and later pay the ex-gratia by mentioning in the payslip, the practice needs to be continued till the employees leaves the organization. Payslip would certainly confirm the employee for getting the ex-gratia.
The Company should have stopped paying ex-gratia and mention in the payslip, when the employee comes out of the purview.
10th November 2007 From India, Hyderabad
Thanks Suresh, for the reply you had posted.
When the company is paying ex-gratia, it is not mentioned in the salary slip, since it is not given with the salary. But when it is disbursed, a pay slip is provided similar to the salary slip only mentioning the ex-gratia given. This has been continued even this year, but I had resigned before the ex-gratia was disbursed. The ex-gratia is given for the period April-March' 2006-07, while I had resigned in September' 2007, thus completing my stay in the company during the period for which the ex-gratia is being disbursed.
So do you think this fulfils the eligibility and the ex-gratia must be included while settling my accounts with the company.
Could you tell me if there are any laws or acts related ex-gratia, although I assume there aren't any.
Looking forward to your opinion once again.
13th November 2007 From India, Calcutta
Dear Shantanu
Am sorry for not responding to u immdtly.
You are not eligible for ex-gratia at the time of disbursement. As I told you, it is the discretion of employer to disburse ex-gratia as it is not bound by any law.
You were not in service, at the time of disbursement. You would have got it, if you are with the employer at the time of disbursement.
Now, due to amendment of the act, just check, whether you are eligible for bonus since it is retrospective effect 2006-'07.
Hope it is clarified.
25th November 2007 From India, Hyderabad
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