Can We Give Bonuses for 2023-2025 After an Employee Resigns? Seeking Advice on Ex-Gratia

Hi, can we give a bonus for the year 2024-2025, including the years 2023-2024, after the employee's resignation? Also, is ex-gratia necessary, or can we give only a bonus to all employees earning above 21,000/-? Please advise.

Eligibility for Bonus and Ex-Gratia

The period for which the employee was in employment is eligible for a bonus. For a partial period, it has to be calculated on a pro-rata basis.

If the company has a practice of paying bonuses/ex-gratia to employees outside the purview of the Bonus Act, the organization may do so as per policy. However, it would be wise to classify it as ex-gratia instead of a bonus.

Regards, S K Bandyopadhyay

The bonus for the year 2024-25 shall be paid in 2025-26 only. This year, you can pay the bonus for the FY 2023-24. The resigned employee who has worked for at least 30 days in the financial year (2023-24) is also entitled to receive a pro-rata bonus for the days worked.

It is not necessary to pay any ex gratia amount unless it is part of the service condition, i.e., part of the CTC on which the employee was appointed. You can restrict the payment of bonuses to those who are within the bonus bracket of Rs 21,000 or less (not above Rs 21,000). However, if you have included a bonus element in the remuneration structure (CTC) of all employees, including those who are not entitled to a statutory bonus, then you should pay it.

But the bonus/ex gratia payment for the year 2023-24, which was not yet disbursed, was deducted from the F&F in the year 2024-25 before disbursement. Moreover, a forceful written consent was taken from the employee. To avoid disturbances in smooth relieving formalities, it was consented by the employee under coercion. Does he have the right/eligibility to receive the 2023-24 year's bonus/ex gratia at the normal disbursement time, i.e., before the Diwali vacation? Please guide.

How can you deduct the bonus amount from F&F? Forcing an employee to sign such papers is totally illegal. The employee can approach the appropriate authorities.

You can give out bonuses for 2024-2025 even after an employee leaves, but this depends on company policy and the terms of the employment contract. Ex-gratia payments are discretionary and not legally required. You can choose to only give bonuses to employees who earn over ¥21,000, but this also depends on company policy.

[Planet Clicker](https://planet-clicker.com/)

All employees who worked more than one month in the factory are eligible to receive a bonus. For the 2024-2025 financial year, which has not yet been completed, the eligibility of employees will be calculated in 2025, and payments will be processed during that year.

Ex Gratia Payments and Bonus Requirements

There is no law mandating ex gratia payments, regardless of bonus payments. Bonuses are a legal statutory requirement for any factory that has been in existence for at least 5 years. Such factories must pay a minimum bonus of 8.33% up to a maximum of 20% of the range of profits.