Can any tell me what is exgratia.
2 Replies
CA Nikita
(Chartered Accountant)
(4158 Points)
Replied 11 June 2007
A payment made out of a sense of moral rather than legal obligation.
For such meanings required in future you can use the" knowledge search" of caclubindia.com
Jeyamurughan
(38 Points)
Replied 11 June 2007
Ex-gratia is Latin (lit. 'by favour') and is most often used in a legal context. When something has been done ex gratia, it has been done voluntarily, out of kindness or grace. In law, an ex gratia payment is a payment made without the giver recognising any liability or legal obligation.
Most of the cases Ex-gratia is paid along with annual bonus, since the Payment of Bonus Act, puts a cap on 20% bonus to employees, the employer and employee agree to pay a higher amount than 20%, and coined a new term of ex-gratia, which is paid along with Bonus.
Rgds,
Jeyamurughan.Na
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