Ex-gratia to officers of the bank
S RAMESH
(Querist) 22 December 2016
This query is : Resolved
Sir,
I am working in a co-operative bank in Bangalore. Management have sanctioned Ex-gratia to all the employees including officers of the Bank for the year 2015-16 after the same is approved by the General Body meeting.
Now, a member of the Bank is claiming that Officers of the Bank are not eligible for either bonus or ex-gratia under the Bonus Act and violation of Bonus Act.
Please clarify the same whether the officers of the Bank are not eligible to Ex-gratia under bonus act.
regards
ramesh
Kumar Doab
(Expert) 22 December 2016
The Co-OP Bank must have referred the matter to its legal cell and obtained clear legal advise on it.
Are you officer of the bank?
What is the opinion of legal cell?
Rajendra K Goyal
(Expert) 22 December 2016
Payment of ex-gratia in Banks is related to pay drawn by an employee, fixed under the act irrespective of the cadre.
Please refer the guidelines.
Kumar Doab
(Expert) 22 December 2016
As posted by you, it is Co-OP Bank that would be under State Cooperative Societies Act and might have State Cooperative Societies Employees Service Regulations framed by State Cooperative Industrial Service Board.............
Published version of Such related Act, Rules may be referred to......
E.G;
CHAPTER-VI; (19) c) EX-GRATIA : Ex-Gratia may be paid as per orders of the Registrar, Cooperative Societies with the approval of the Board of Directors.
http://recbjaipur.com/images/upload/filemanager/Staff_Serv.pdf
16. PAYMENT OF BONUS Subject to the provisions of any law for the time being in force on the subject, a society may set apart not more than 10% of its net profits for the payment of exgratia or bonus to its 12 salaried employees, if such payment is recommended by the Managing Committee and approved by the General meeting and the Assistant Registrar Co-operative Societies. Provided that the amount of bonus shall not exceed one month salary in a year.
http://coophp.nic.in/pdf/PACSins/service%20rules%20PACS1.pdf
The extent ACt and Rules as in your case are not posted by you.
Guest
(Expert) 22 December 2016
Mr. S Ramesh,
There is nothing common between ex-gratia and bonus payment. May or may not be the officers eligible for payment of bonus as per the Payment of Bonus Act, but there is no bar in payment of ex-gratia to the officers on approval by the General Body.
The advice of Mr. Doab is quite confusing, as in one quote he has stated the approval of the Registrar is necessary, while in another he has stated about the necessity of approval by the Assistant Registrar of Co-op societies.
Moreover, the document "http://recbjaipur.com/images/upload/filemanager/Staff_Serv.pdf" as quoted by him relates to the Railway Employee's Co-op. Bank Ltd., Jaipur, AND document "http://coophp.nic.in/pdf/PACSins/service%20rules%20PACS1.pdf" relates to the " H.P. Primary Agricultural Co-operative Credit Societies
Employees (terms of employment & working conditions) Rules,2001.
INow Mr. Ramesh, you may like to think, how both or even one set of different rules of the different organisations, one belonging to the Central Government and the other to the Rajasthan State can apply to the staff of your organisation.
Anyway, best of luck, if you want to abide by the advice of Mr. Doab in applying both or even one of the sets of the rules by ignoring the byelaws of your own cooperative society.
P. Venu
(Expert) 23 December 2016
It is only that one member holds a different opinion. There are no legal issues involved unless the Management revokes its decision!
