Madhu.T.K
Industrial Relations And Labour Laws
Tsivasankaran
Consultant
K K Bhatia
Manager
+1 Other

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dear all

i worked for a group having several companies registered in eastern region of india and having plant in other locations. I work at corporate office of the group in delhi where several senior staff members were sitting and getting their salary from different companies under the group. corporate office use different policies in relation to salary increments and bonus than what was used at different plants of such companies and branch offices. for last 8 years i was one of them who were under corporate office policies. The company ( Z ltd) which was paying me salary also follow different policy for all employees except me as i was one of the few employees who join the rolls of that Z Ltd but sitting at group corporate office, salary and bonous policy of Z ltd were good than what was followed at corporate leval and i have no problem with that as the payment of gratuity to employees was good at corporate level as corporate office was paying u gratuity at your gross salary not on basic salary.

All things goes well till i work, but today when resign i was told that my gratuity will be calculated on basis of policy of Z ltd and not on basis of corporate office policy which was follow for each other employee when left job from corporate office till last 60 days.

here as we all know that in such situation management show its real colours and my immediate seniors at corporate level did not support me and not put forward my case ahead.

my query is that Z ltd which has declared ex-gratia bonus every year since i join the rolls of the Company and sitting at corporate office, during first year in 2009 i was also given bonus as i was new to this system but staff at corporate office told Z ltd that i shall be followed by corporate office polices.

z ltd has paid bonus to all employees yesterday and given 2016 ex gratia bonus as my name was not part of that list and same evening they denied me the benefits which were available to corporate office staff. Can today a claim ex gratia bonus of last 7 years which was never paid to me and if company denied this what are the legal remedies available to me.

From India, Noida
Ex gratia bonus is something which is outside the purview of Labour Act pertaining to payment of Bonus to employees. From the post it is not clear whether the bonus is statutory bonus or not. Bonus is statutory bonus only when it is payable to an employee whose salary (at least the Basic +DA portion) is not more than Rs 21000. For the rest of the employees it is not statutory bonus and as rightly said by jack, it should be ex gratia only. Ex gratia is paid subject to certain conditions and the one and the most important factor is whether the employee will continue to be with the employer or not. Naturally, one who has put the papers will not be paid any ex gratia because it is paid not by the operation of any law but it is paid purely as a gift. It can also be paid if there is a specific understanding as per the contract of employment. In the latter case, the employee denied the benefit of ex gratia shall proceed against the employer in the civil court for breach of contract of employment.

Coming to differentiation in pay and payment of bonus/ ex gratia, only the management can do something because there can be persons coming under different pay rolls sitting in the same organisation. In the absence of a service rule or Standing Order, this can only be considered as a work arrangement. In such situation, the normally, the terminal benefits as applicable to the mother concern (in your example, Z ltd) will be applicable to the employee engaged at the Corporate Office representing the mother concern, ie, Z ltd. It is not necessary that you should get the benefits as applicable to other Corporate employees.

Madhu.T.K

From India, Kannur
What is your designation? What is your work nature? What is your salary? These facts are required to find out whether you fall under ID Act or Indian Contract Act
You sure can move the court on Discrimination.If you fall under the category of workman, a Good advocate can win a case for Exgratia .
However if you are moving to another Company, then we do not recommend any litigation.
T Sivasankaran

From India, Chennai
denial of payment due for the work already carried out is no good.The company should go by policy & not by pick & choose.Employee leaving the organisation TPC is a normal phenomena & company should not be vindictive about it.This is not a matter of money only but the corporate value & ethics is also attached to it.
From India, Chennai
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