Re: Meaning Of Ex Gratia

Can anybody let me know the meaning of exgratia payment act :?:
Thanks
Moushomi

Hi Moushomi,
Ex-Gratia is a part of CTC which is been attached as a predefined Bonus, and is been paid at the time of Diwali on pro-rata basis..
Because now a days has incorporated this structure in their CTC content to secure the employee that this much of amount will be paid at the time of diwali and will be calculated on pro-rata basis...
Regards,
Amit Seth.

Dear Sir,
An employee was appointed at X CTC, whose breakup includes exgratia. After two years HR while giving the increament letter puts a small clause that the exgratia payment will be done only if the employee is in service at the time of disbursal of exgratia without taking employees consent.
Since this exgratia amount was actually the part of salary of the employee. Can management say no to pay this amount if the employee is relieved before the disbusement day normally around Diwali.
Your immediate response would be of immense help.
Regards,
Rahul

Dear Rahul,
Ex-Gratia is an amount which is been added as pre-defined bonus.. as its a part of CTC so it must be paid even in case of separation whether its before or after diwali.. actually it is been paid on pro-rata basis, so at that time it must be paid according to his length of service.. if not defined any prior clause, in HR Policy..
Regards,
Amit Seth.

Thks Amit for your immediate response.
Can we have any similar legal clarification? As logically this exgratia payment should be made, but what if Co. is reluctant to pay?
Rahul

Thank you Rahul,
Actually if employer is reluctant not to pay that amount then in that case he must have some policy regarding that otherwise he must pay the same...
For that one may even go to labor court also..
Regards,
Amit Seth.