Ex Gratia is a voluntary payment or benefit provided by an employer out of goodwill, not legally required, often as a gesture of appreciation or severance.
- What is ex gratia?
Answer: It is a voluntary payment or benefit given out of goodwill, not legally required. - What are examples of ex gratia payments?
Answer: Examples include severance bonuses or holiday gifts. - Why do employers offer ex gratia?
Answer: It boosts morale, resolves disputes, or shows appreciation. - Is ex gratia taxable?
Answer: It may be taxable depending on the amount and jurisdiction. - How is ex gratia documented?
Answer: It is documented in employment agreements or memos.
