Ex-gratia

Parthiv (Querist) 03 March 2011 This query is : Resolved
a)If Companies paying ex-gratia to employees(as per agreement with labour union),will the payment of bonus act be applicable?
b)If the payment of bonus act is not applicable; which act will be applicable??
c)Can ex-gratia be paid to workers and executive staff??

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Kirti Kar Tripathi (Expert) 03 March 2011
a) Payment of Ex-gratia will not exclude the operation of Payment of Bonus Act. If Payment of Bonus Act is applicable in the establishment, the employee of establishment are entitled to Bonus also as per Act. In case,
b) if PBA is not applicable, the Ex-gratia payment will paid as per policy of the management or in terms of settlement as the case may be.
c) it will depend on the policy of the management.

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