Ashwani Dixit 13 May 2021

Recovery of bonus ex gratia once paid

I received ex gratia from my employer for the period 2016-17 in the month of Dec.2017.I superannuated in the month of May 2018.In the month of Aug.Sept.2017 the annual audit took placed and the audit objection established that 42% extra bonus ex gratia paid to employees,so it should be recovered from its beneficiaries. The newly nominated board of CCB passed a resolution in the year July 2020 to recover the42% bonus ex-gratia.

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3 Replies

Sankaranarayanan (Advocate) 13 May 2021

What is your issue?

Pradipta Nath (Advocate) 13 May 2021

Need to go through the documents, Please.

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 ) 13 May 2021

Generally, there exist no limits with regards to such payments unless there is a Memorandum of Understanding (MOU) between the employer and the employee to this effect. Such ex-gratia payments do not fall under the purview of the Employee's Provident Fund Act, 1952.