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Salary advance or financial loan are out of purview of law. That is internal matter of your company. Earlier there was similar query wherein I had given my reply. Check the following link:
From India, Bangalore
Pl see the Payment of Wages Act 1936 along with Haryana Rules. The relevant Section of PWA is given below:
12. Deductions for recovery of advances.
—Deductions under clause (f) of sub-section (2) of section 7 shall be subject to the following conditions,
(a) recovery of an advance of money given before employment began shall be made from the first payment of wages in respect of a complete wage-period, but no recovery shall be made of such advances given for travelling expenses;
[(aa)recovery of an advance of money given after employment began shall be subject to such conditions as [the appropriate Government] may impose;]
(b) recovery of advances of wages not already earned shall be subject to any rules made by
[the appropriate Government] regulating the extent to which such advances may be given and the installments by which they may be recovered.
However, care has to be taken so that the total amount of deductions which may be made in any wage-period from the wages of any employed person shall not exceed—
(i) in cases where such deductions are wholly or partly made for payments to co-perative societies under clause (j) of sub-section (2), seventy- five per cent, of such wages, and
(ii) in any other case, fifty per cent, of such wages .
So while granting advances ensure that the Haryana PW Rules are complied and the deuction thereof falls within the said limits
From India, Mumbai
the wages are not more than twenty rupees one-forth of the wages for
any wages period,
Thanks & Regards,
Sumit Kumar Saxena
From India, Ghaziabad
Any permanent employee, after probationary period, is eligible to apply for a salary advance. The employee is not overly indebted to the company, his credit rating, based on experience known to the Company, is satisfactory and there is no question about continuation of employment.
A request for salary advance must be submitted in writing to HR Manager via the Department Manager. If the request is approved by Department Manager and HR Manager, the letter will arrange with the General Accounting Department to verify the employee's eligibility and to issue a check or cash to fill the request.
Normally a salary advance will be limited to a maximum of one month's pay. However, the request should be limited to no more than be reasonably necessary.
The advance may be paid in the currency, and by cash or check, and at the location selected by the employee, provided it is convenient and appropriate for the Company to accommodate him.
The entire amount of any advance granted to accommodate personal needs during business travel will be deducted from the employee's salary at the next subsequent pay date(s). No delayed or periodic repayments are authorized. Repayment of any salary advance granted for relief from extreme personal hardship will be deducted from the employee's salary in equal amounts over a period not to exceed six months beginning at the next subsequent pay date(s).
Basically speaking, the salary advance for the employee is a benefit without interest required. If the time of reimbursement exceed the stipulated period, the company will charge the salary advance for the interest rate of the current market.
From China, Shanghai
From India, Pune