ex gratia

An ex gratia payment is made out of grace or goodwill, not because the payer is legally bound. Governments make ex gratia payments to victims of disasters or accidents, and employers make them to employees on special occasions. Such a payment does not amount to an admission of liability.

Because it is not a legal right, an ex gratia payment cannot ordinarily be claimed in court, though once a scheme is announced, the State must apply it fairly and without discrimination under Article 14. Courts often say that an ex gratia amount is to be deducted from, or is separate from, statutory compensation, depending on the scheme. The opposite is a payment made ex debito justitiae, as of right.

Example

The State's ex gratia grant of two lakh rupees did not bar the victims' claim for compensation under the Motor Vehicles Act.

See also

ex officio · damages

Read more in the study notes

• Compensation jurisprudence: public law damages for violation of fundamental rights (Indian Constitutional Law - New Challenges)
• Payment of bonus (Labour and Industrial Law I)