Understanding Ex Gratia Payments
"Ex gratia" is a Latin term that refers to something given voluntarily, out of goodwill, rather than because it is required by law or obligation. In the context of employment, an ex gratia payment is a sum of money paid by an employer to an employee, usually in addition to any legal entitlement, as a gesture of goodwill or to recognize specific circumstances.
When Are Ex Gratia Payments Made?
Ex gratia payments are typically made in situations such as redundancy, where an employer may choose to offer an additional payment beyond what is required by law to support the employee during the transition period. These payments are discretionary and are not legally required, but they are often used to demonstrate appreciation for an employee's service or to address specific needs.
Purpose of Ex Gratia Payments
Overall, ex gratia payments serve as a way for employers to show empathy and support to employees during challenging times or to acknowledge exceptional circumstances.
"Ex gratia" is a Latin term that refers to something given voluntarily, out of goodwill, rather than because it is required by law or obligation. In the context of employment, an ex gratia payment is a sum of money paid by an employer to an employee, usually in addition to any legal entitlement, as a gesture of goodwill or to recognize specific circumstances.
When Are Ex Gratia Payments Made?
Ex gratia payments are typically made in situations such as redundancy, where an employer may choose to offer an additional payment beyond what is required by law to support the employee during the transition period. These payments are discretionary and are not legally required, but they are often used to demonstrate appreciation for an employee's service or to address specific needs.
Purpose of Ex Gratia Payments
Overall, ex gratia payments serve as a way for employers to show empathy and support to employees during challenging times or to acknowledge exceptional circumstances.