Sudha (Sr. Manager HR/Admin) 26 June 2013
Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 ) 26 June 2013
A sum of money paid when there was no obligation or liability to pay it. For example, a lump sum payment over and above the pension benefits of a retiring employee. In insurance claims, it may take the form of payment for which the insurer did not appear to be liable. Ex gratia is Latin for "out of goodwilll." Also called ex gratia settlement.
Sudha (Sr. Manager HR/Admin) 26 June 2013
Respected Sir,
I need guidance from your side. Please let me know that if the exgratia is included in monthly CTC (i.e. the sum is being deducted from monthly CTC and being reimbursed once in a year), can it be claimed by an employee who leaves the company within a year's period? I know that exgratia can not be claimed as a legal right of bonus (by people having ctc more than 10000) but if it constitues a part of monthly CTC , can it be claimed while F&F?
In our current salary structure a sum is being deducted towards Ex-Gratia and the accumulated amount is being refunded once in a year during diwali. but if an employee leaves the company before completing one year of service the accumulated amount is being forfeited by the company and not refunded during F&F. can it be legally challenged?
please advise!!