i have received a letter with a payment offer of an exgratia amount what does this mean?
2006-07-15 00:28:09 · 10 answers · asked by clairelouiseharpham 2 in Business & Finance ➔ Other - Business & Finance
so it's not the figure before or after tax?
2006-07-15 00:34:34 · update #1
I approve of your name - and the way it is spelt!!!
would watch out if they have written ex gratia as one word! You do not say why you were sent the letter. I presume it was for a legal case. They may be offering you the cash but with the proviso that if you do so, you cannot sue them. However, if you refuse the money and then sue them, you may be given less by the courts - and could be made to pay their legal fees as well as your own. Check with your lawyer before you reply!
Ex gratia (sometimes 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.
In the UK, a company conducting layoffs may make an ex gratia payment to the affected employees that is greater than the statutory payment required by the law, particularly if those employees had a long and well performing service with the company.
2006-07-15 12:14:55 · answer #1 · answered by Anonymous · 2⤊ 0⤋
Ex-gratia Payment Meaning
2016-11-12 05:00:42 · answer #2 · answered by ? 4 · 0⤊ 0⤋
It means 'out of kindness'.
It is a voluntary payment that does not imply anything was owed or due.
You may still be taxed on it. It depends - you would have to check that out.
If it's a redundancy payment it would depend on the amount.
2006-07-15 00:36:23 · answer #3 · answered by Trish D 5 · 0⤊ 0⤋
It means the person making the payment is doing so voluntarily and is not taking any liability for why it is being paid - usually applies in a legal context and is usually to do with personal injury compensation claims etc.....
2006-07-15 00:43:40 · answer #4 · answered by lunarsky 3 · 0⤊ 0⤋
Additionally, an ex-gratia payment might be offered to you to drop the claim if you were proposing to sue a company for damages.
2006-07-15 00:47:02 · answer #5 · answered by Martin G 4 · 0⤊ 0⤋
Its like a grace payment it means its a payment that they have no legal rights to have to give you.
You get them for good work or if they are pleased with something you have done.
2006-07-15 00:35:48 · answer #6 · answered by atticusblack19 1 · 0⤊ 0⤋
A payment made out of grace (free will) and not out of obligation or admission of guilt.
2006-07-15 02:59:09 · answer #7 · answered by Anonymous · 0⤊ 0⤋
payment without having to hand over goods or do any work
2006-07-15 00:33:18 · answer #8 · answered by david clayton 1 · 0⤊ 0⤋
Its like a bonus from your employer, but not out of profits, just a payout.
2006-07-15 00:32:31 · answer #9 · answered by Dr Dee 7 · 0⤊ 0⤋
don.t be lazy look it up
2006-07-15 04:34:15 · answer #10 · answered by lucy j 2 · 0⤊ 0⤋