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Process an ex gratia payment

Processing an ex gratia payment for an employee.

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Written by Jordan Hutchinson
Updated over a week ago

An ex gratia payment is a voluntary payment you make when an employee leaves your employment, that is over and above what they are entitled to be paid in their contract of employment. To do this, follow the steps below.

๐Ÿ“ŒNote: For payments over ยฃ30,000, you will require two pay elements to meet HMRC legislation.

  1. Create a new pay element, and select the type Earnings.

  2. Enter the required rate and quantity.

  3. Select the required checkboxes.

  4. Click Save and Close.

  5. Assign the pay element to the required employee.

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