Can I Legally Claim Ex-Gratia Payment After Resigning Before Diwali?

As per my appointment letter, the bonus is part of the CTC. After the completion of 1 year, the company gave ex-gratia on Diwali.

Query Regarding Ex-Gratia Payment

I resigned and gave notice to the company. My last working day was 31st Oct. 2012. The company gave ex-gratia on 10th Nov. 2012, on Diwali. However, the company did not pay me the ex-gratia, and the reason behind that is I have left the company.

Kindly advise if I can legally fight with the company to get the ex-gratia.

Thanks

First of all, kindly put your query in order. What was your date of joining, or did you serve the company for a minimum of 30 days in a financial year? If yes, then you are eligible for a bonus amount. Also, please mention if the bonus has been paid to you during your full 'n' final settlement. Again, if yes, you are NOT entitled to this ex-gratia amount.

I don't understand your inclination towards going LEGAL for such a thing! Are you aware of the repercussions?

Dear Hiral, thanks for your reply and apologies for being unclear. My date of joining was 5th September 2011, and I have completed 14 months in the company. In my full and final settlement, I received only my salary. They didn't mention:

• PL encashment
• Ex-gratia
• LTA

My basic salary was 18,000, and the gross was 30,000/-. They denied paying anything I mentioned above. If I file a case to get PL encashment, Ex-gratia, and LTA, please advise.

Regards.

No, you can't take any legal action for ex-gratia as it is not the legal right of the employee. Please let me know if you need any further assistance.

Since you are receiving a basic salary of over $10,000, you are not entitled to a bonus. Ex gratia payment is optional, and the company cannot be compelled to make this payment. Please let me know if you need any further clarification or assistance.

In both cases, the company's stance of not paying is correct. The Bonus Act protects the interest of people who draw a salary below Rs. 10,000. Ex gratia is at the discretion of the company unless it is clearly mentioned in the service conditions. The same is the case in respect of unavailed privilege leave. Unless it is specifically mentioned that the unavailed leave can be encashed, there is no scope for a dispute.

Since the bonus you are talking about is not the one falling under the Payment of Bonus Act, your claim to ex gratia depends upon the terms of eligibility under your contract or company's policy. Go through them. Probably you will find an answer.

Regards,
B. Saikumar Mumbai

No, you can't fight a legal battle against the company for the payment of ex-gratia after resignation. It solely depends on the company whether to pay the same or not.

Regards,
Sumit