Navigating Ex-gratia and Bonus Claims: Understanding Employee Rights and Company Policies

Dear All,

I work in the Executive category at the middle management level. In my previous company, the ex-gratia amounts were disbursed. When I contacted them about my bonus or ex-gratia amount, they informed me that the ex-gratia amount is only payable to employees who are present on the muster of the company, and therefore, I am not eligible for the said amount.

Can anyone suggest any way to obtain the bonus/ex-gratia amount?

Rahul.

Please refer to your appointment letter. If it is the policy of the company or mentioned in that, then it's meaningless to ask them for the ex-gratia/bonus. Few companies are including the bonus as a part of their CTC, deducting it from the employee's salary. If the same applies to you, then you can ask for the bonus because you are eligible.

Dear Mr. Rahul
There is difference in Bonus amount and Ex-gratia amount, as such you have to be make sure exactly what type of amount you what to claim?
If it is a bonus amount and you are governed under the definition of the employee under the Bonus Act i.e. your salary was less than 10,000/-pm during the period concerned and you had worked more than 30 days with your previous employer then you are entitled for the same and you can file a claim/complained before the concerned Labour Authority because the payment of bonus is paid to the ex employees also and the company is bound to pay the same.
if it is not a Bonus or it is ex-gratia then it will be governed by the terms and conditions of your appointment letter or by the company ’s policy because the ex-gratia is a payment which is paid on the policy of the company concerned and not under the provisions of any Act.
Pkjain

Dear Rahul,

Mr. P.K. Jain is correct. If your salary was above 10K per month, then you can't go to claim/complain before the concerned Labour Authority regarding the unpaid bonus amount. Kindly cross-check the Exit clause/Full & Final Settlement clause of your last organization's policy.

Thanks/Regards,

Ratikanta Rath

Bonus is a statutory payment governed by an Act. Ex gratia is a company's discretionary offering based on its policy. You can claim a bonus if you believe you are eligible, but not ex gratia.

Balaji