Ex-Gratia Eligibility Dilemma: How Can I Claim My Bonus After Leaving?

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.

Seeking Advice on Bonus/Ex-Gratia Eligibility

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

Regards, 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. A few companies include the bonus as 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 a difference between the bonus amount and the ex-gratia amount. You need to ensure exactly what type of amount you want to claim.

Bonus Amount

If it is a bonus amount and you are governed under the definition of an employee under the Bonus Act (i.e., your salary was less than ₹10,000 per month during the concerned period and you had worked more than 30 days with your previous employer), then you are entitled to the same. You can file a claim or complaint before the concerned Labour Authority because the payment of a bonus is also made to ex-employees, and the company is bound to pay it.

Ex-Gratia Amount

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. The ex-gratia is a payment made based on the company's policy and not under the provisions of any Act.

Regards,
Pkjain

Mr. P.K. Jain is correct. If your salary was above 10K per month, then you can't claim or 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

Understanding Bonus and Ex Gratia Payments

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.

Regards,
Balaji