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Dear Member, One of my employee wants advance a sum of Rs.50,000/- for purchasing a house. Presently the said employee having his salary 12000(approx). I just want to know the process by which I can give my employee the amount requested for and further i want my protection to if in future the said employee denied to refund the said amount.
Thanking you in Advance.
From India, undefined
Dear Anirban,
What he is asking for is a loan and not an advance, as advance is generally, recovered in one shot (as his salary is 12000, this is not possible).
Now, normally, the loan is given as maximum of 2 salaries, so the recovery can be done easily.
You will need to form a loan form, the employee has to fill the same, sign the same and also ask him to give 2 surety who are working with you and who will pay the loan, if the person absconds.
Ashutosh Thakre
From India, Mumbai
To secure your interests, pl follow the formats required as per Payment of Wages Act and the applicable rules of your State.
From India, Mumbai
# Anonymous
Dear Anirban
Ensure that the employee TOTAL DEDUCTION in salary slip does not exceed 50% against the TOTAL GROSS SALARY every month as per rules mentioned in Payment of Wages Act. In that way you have to calculate the monthly EMI for the loan you have given along with other deductions like PF,ESI,PT etc.
From India, Chennai
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