Hi,
Bonus is essentially a "share in the profits" of the organization. To streamline many dissimilar practices in industries so that dissatisfaction over the payments by employers to the employees could be contained. In the past such payments were dependent on the whims and facies of the employer and there was no thought about rationality in payments and equatability.
As an answer the country passed law, "Payment of Bonus Act 1965" and it became mandatory for an employer to pay bonus in terms of the act which provided mode amd modality for calculating bonus. I am attaching a brief note on the subject. The note covers the topic but cannot provide all details.
Ex-gratia is a terms that refers to any payment made by the mployer "gratis" which means, "of his own free will" and under no obligation of any law. The practices regarding this are many and I will cite only some, so that the conceptual difference is easily understood.
1) When the profits do not support large bonus, the employer may some amount from out the revenues of the firm, in acknowledgement of the workmens' contribution.
2) On an event of significance tot he organization, like completing a specific period of existence, completion of a large export order etc.
3) Any other reason that is NOT a binding on the employer, but the employer "wishes" to make such a payment.
All in all, these two terms look related, but in reality are conceptually different! Are we now clear?
Regards
samvedan
December 13, 2006