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APPLICATION FOR EX GRATIA BENEFITS Important Please Note Ex Gratia payments may be made by the Committee in its absolute discretion provided it is satisfied that significant financial hardship or.

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An ex gratia payment is considered voluntary because the party making the payment is not obligated to compensate the individual. In Latin, “ex gratia” means “by favor.”

Ex gratia payment is Latin for "by favor." It is a voluntary payment made by the insurer in response to a loss for which it is not technically liable under the terms of its policy.

An ex gratia payment is considered voluntary because the party making the payment is not obligated to compensate the individual. Ex gratia payments in the U.S. are typically subject to federal and state income taxes.

An ex gratia payment therefore usually represents a “good will” sum without any obligation by your employer to pay this. However in the context of disputes, such as claims for unfair dismissal, performance improvement plans, or discrimination, the payment may arise as a result of a negotiated settlement.

For example, suppose any company is having an awful experience and want to reduce its number of staff. In that case, they must pay legal compensation to the employees before laying them off. If the company pays an additional amount out of their wish, this is termed ex gratia meaning.

An ex gratia payment is a type of payment made by an organization to an individual for damages or claims without recognizing any legal obligation. “Ex gratia” means “by favor” or “by virtue of grace” in Latin. Thus, an ex gratia payment is a voluntary payment that is not a part of an organization's legal liability.

For example, suppose any company is having an awful experience and want to reduce its number of staff. In that case, they must pay legal compensation to the employees before laying them off. If the company pays an additional amount out of their wish, this is termed ex gratia meaning.

Ex gratia payments are, therefore, gestures of goodwill on behalf of the employer outside of your contract of employment. Such a payment is also referred to as a golden handshake. These payments are commonly made in a retirement, redundancy and dismissal scenario.

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© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232
Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232