Ex-Gratia (bonus)

Hello Friends,
Will the company deny Ex-gratia (bonus) to its employees. If so, they would need to inform the employee in advance is n't.
Regards,
sens

Bonus is paid as per the Payment of Bonus Act 1965.
There is an upper ceiling prescribed for payment of bonus i.e. 20%
Hence any employer who is willing to pay bonus over and above 20%
he pays it in the name of "ex-gratia" payment.
"Ex-gratia" (Latain) mean done, made as a favour, in absence of legal right.
In order to maintain a good harmonious industrial relations, ex gratia may be paid, if you were paying it in the previsou years. If due to financial difficulties, ex- gratia cannot be paid this year, call the employees, talk to them, convince them and request them to cooperate and assure them that ex gratia will be paid when the financial position improves.

Dear K C S Kutty,
As you correctly said There is an upper ceiling prescribed for payment of bonus i.e. 20% and lower prescribed limit for bonous is 8.33% but what i know if an employer wants to give the benefit of bonous to those employees who gets basic+DA more than 10000Rs then this benefit is called "ex-gratia".but i would like to know that what is the ceiling limit of "ex-gratia" like bonous(8.33% to 20%).
Regards,
Bandini

As said earlier, ex gratia is paid in the absence of legal right.
For payment of ex gratia there is no ceiling since it is not prescribed by law.
Please remember, if you pay 30% or 25% ex gratia this year, it will be demanded next year and then it will becomes a custom and a right. Be generous but be careful also.
KCS Kutty

Dear K CS kutty,
Sir i have a question about LTA can you please help me out
My query is what i know the min working period to being eligible for LTA is 1 year(12 months) but sir if an employee has completed his 1 year(6 months as probation period and 6 months as confirmed ) will this person get LTA or not

LTA or LTC varies from organsiation to organisation. Employees of Central govt. are having a different scheme of LTC. State govt. employees, Govt of India or State Govt. undetakings have their own LTA or LTC Rules.
You have to check up the of LTA in your organisation. If an employee is eligible for
LTA after completion of one year, he en entitled for LTA. Probation period is also service period. Probation period is only for assessing his suitability for the post. Since his services are confirmed he is a regular employee with service of one year.
Kindly go through the rules of LTA of your organisation once again. Also check up whether the letter confirmation says that his service period commences from the date of confirmation only.
KCS Kutty

employer has to pay minimum bonus that is 8.33% but as such there is no compultion on employer to pay ex-gratia. it depends upon the employers profitability and the will. so employee can not take any objection if they dont get paid ex-gratia. but ensure that they will get paid miimum bonus 8.33%.

Mr.SENSE do not confuse urself with Ex-GRATIA & BONUS. Both r different. BONUS is statutory & Ex-gratia is voluntary payment by Employer. Thus Ex-gratia can b denied with r without intimation where Bonus cannot.

LTA will b granted the person who have completed 1yr (inclusive of probation period). Trainee period is excluded.

We are in an organisation under compenies act, the org is not paying BONUS to its employees but paying performence pay , the staff are getting as per their pay scales and peformence parameters. The organisation has not termed it as " Bonus", can we treat it as bonus? Some of the lower level staff should be paid at 8.33% minimum? . Staff who are appointed as agents will they get the bonus ? as they dont have definet pay.