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Whether ex gratia can be forced to pay by employer
31-Oct-2023 (In Labour & Service Law)
A private sector public ltd company has denied payment of ex-gratia as per the defined company policy saying that we have withdrawn this policy and we need not intimate to any one as this is ex gratia as it is not binding on us though under this policy only one gm was paid ex-gratia amt on retirement and the policy still appears in company records.my question is it legally binding on employer and whether provision inder as-15 is required under accounting standards and whether violation of companies act sec 133 & 134 is there or not
There's no legal compulsion to pay the ex-gratia income to the employee by the employer. The employer does it by the way of its moral obligation and that's it.
However, if there is any thing written in the company policy in relation to the ex-gratia income and that policy has been used till recent times, then one can definitely make claims thereto.
However, if there is any thing written in the company policy in relation to the ex-gratia income and that policy has been used till recent times, then one can definitely make claims thereto.
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Adv. Pulkit Prakash
Delhi | 400+ Answers
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You are advised to first file a representation with your employer and on the rejection of the same you may approach the Industrial Tribunal/Labour court under section 19 of the Industrial Tribunal Act. You may avail my servises in drafting the representation at a very reasonable cost
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Adv. Harish Chandra Yati
Noida | 100+ Answers
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