How Can I Claim Unpaid Ex-Gratia from My Former Employer After Resigning?

madhavi.priya
As per the company's CTC, they have not paid ex-gratia for a period of 2.5 years. How can I obtain the money from the company since I have resigned from my job and would like to receive that amount as part of my final settlement? Please help me.
nvraovskp
If it is part of your CTC, the ex gratia is to be paid at least once every year before 30th November, on par with the bonus payable to the employees of your company whose basic salary is less than Rs. 10,000/- and who fall under the purview of the Payment of Bonus Act.

Generally, in all new companies where the CTC concept is present, ex gratia, instead of a bonus, is included as part of the CTC for employees who do not fall under the purview of the Bonus Act, i.e., those earning more than Rs. 10,000/- in basic salary. In such cases, the employer is required to pay ex gratia to these employees as well, on par with employees eligible for a bonus under the provisions of the Payment of Bonus Act, preferably by November of each year for the bonus pertaining to the previous financial year.

In this situation, why did your employer not pay ex gratia to you every year, and why did you not ask them to pay for the past two and a half years? Moreover, in some organizations, management may not pay ex gratia to retired or resigned employees if ex gratia is not a part of their CTC. Please check and inquire with your HR Department about this. If your CTC includes an ex gratia component, then you are entitled to it, and you should ask your HR department to process the payment. Otherwise, if you wish to recover the ex gratia, which was part of your CTC, you can file a suit in civil court.

Regards
skjohri1
I fully endorse the advice of Mr. Rao as stated above. However, I feel that filing a suit under CPC will yield results after a very long time. Hence, I suggest that you first have a clear person-to-person discussion with the HR head concerned to understand their perspective. If he declines to pay the ex-gratia for certain reasons, I recommend that you contact the local labor authorities to file an application under the Payment of Wages Act and proceed accordingly.

Thanks and regards,
S.K. Johri
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