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Salary Advances
Discuss workforce management, performance management, retention, communication, motivation, contributing to business results and other topics.
In light of the tightening economy, are you receiving more requests for salary advances? Are you allowing them? What are the eligibility criteria for the employee and the circumstances. It's a slipper
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Salary Advances
posted at 3/4/2009 5:49 AM EST
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Posts: 1
First: 3/4/2009 Last: 3/4/2009 |
In light of the tightening economy, are you receiving more requests for salary advances? Are you allowing them? What are the eligibility criteria for the employee and the circumstances. It's a slippery slope...who's on the slope already...is it working? |
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Salary Advances
posted at 3/4/2009 6:17 AM EST
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Posts: 1771
First: 10/24/2002 Last: 9/14/2011 |
Every single time one of my organizations/client organizations (and there are a lot of these - I've been in HR 20+ years) has provided an employee with an advance on unearned pay, the organization has been burned. Period. |
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Salary Advances
posted at 3/5/2009 6:11 AM EST
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Posts: 464
First: 6/30/2004 Last: 11/22/2010 |
We do allow them, and I administer it.
It's not a widely advertised program and I do have some simple rules around how it is handled. 1. No advance greater than $500. 2. Employee must have been here for at least on year. 3. Employee must be in good standing. 4. Employee must sign a note and agree to payroll withholding for payment terms acceptable to me, including a provision that if the employee terminates employment for any reason, any balnce is deducted from the final check. This is usually one or two paychecks. 5. There can be no other advances outstanding. 6. We do not charge interest. As to administration, our pay periods are always one week delayed from the end of the pay period. So the employee is always due at least one week of pay. I also check accrued vacation leave, which is payable upon termination. I also check on vacations that are approved during the time the advance is still intended to be outstanding as this may impact ability to repay. Based on the employees pay, and the balance in accrued vacation and the reason for the advance, I will determine how quickly the employee must pay back the advance. It is usually with the next paycheck. Good or bad, this advance process is subject to my sole approval. |
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