I am on the process of preparing a HR Policy for Loans and Advances, could anyone send me a draft of such policy. Ramana
From India
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Deepak. M
Executive - Hr/admin
Ramana
Senior Manager - Hr

Hi,
A policy on Salary Advances can be as said under.
The facility to be extended to all confirmed employees of the company or after completion of 12 months of service. to the rest on the approval of CHRO.
No fresh advances until the previous is settled.
2 months net salary only can be given as advance.
the advance can be recovered in EMI for a period ranging from 6 - 12 Months.
Advances can be given only for certain reasons:
Death in Family
Medical emergency
School admission of children
Housing assistance
to assist in times of natural calamities
Higher education of self & family members
others @ the discretion of CHRO
The format should be designed in such manner that all the details required should be made available and a declaration by the employee that he would repay and authorise company to deduct from his salary the amount in case he quits the job in between the repayment tenure.
should be signed by Reporting manager
Rgds:
Deepak. M

From India, Mumbai
Thanks a Ton deepak and it was actually matching my thoughts on the topic. I have a query how to collect the balance amount if an employee quits the organization without any information and if he does not have any salary dues. Please let me know what is the practice generally followed in such situations since PF and Gratuity cannot be holded or adjusted against any advance.
Ramana.

From India

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