Employee Financial Assistance Dilemma
In my company, there is an employee who has been with us for about 8 years. His current salary is $22,000. His family has suffered a series of financial issues, partially due to his own mismanagement and also unfortunate illnesses of different members.
Last year, he requested money desperately, so we allowed him to quit, encash his PF and gratuity, and rejoin a sister company to get some immediate cash. He still needs more money to pay off high-cost personal loans. Half of his salary is going toward paying these loans.
He has requested the company to give him a loan of 2.5 lacs. As per our policy, he is not eligible for more than $45,000. On one hand, I want to help him. On the other hand, I am afraid of setting a precedent that I will be unable and unwilling to replicate if any other staff member also requests it. What should I do? Overall, his performance is good.
Thanks
From India, Ludhiana
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In my company, there is an employee who has been with us for about 8 years. His current salary is $22,000. His family has suffered a series of financial issues, partially due to his own mismanagement and also unfortunate illnesses of different members.
Last year, he requested money desperately, so we allowed him to quit, encash his PF and gratuity, and rejoin a sister company to get some immediate cash. He still needs more money to pay off high-cost personal loans. Half of his salary is going toward paying these loans.
He has requested the company to give him a loan of 2.5 lacs. As per our policy, he is not eligible for more than $45,000. On one hand, I want to help him. On the other hand, I am afraid of setting a precedent that I will be unable and unwilling to replicate if any other staff member also requests it. What should I do? Overall, his performance is good.
Thanks
From India, Ludhiana
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Balancing Company Policy and Personal Assistance
In business, personal sentiments should not be given priority over the policies set by the company. Such situations can happen to anyone. You have already helped him by offering a job in your group company after he withdrew his PF and collected gratuity from the parent company. That itself was an exceptional gesture. Again, if that person is not in a position to make ends meet, we should acknowledge that we are helpless. If you deviate from the company policy and provide such a large advance, say more than three times what he is eligible for, and if something happens or he does not show up after receiving this amount, everyone will blame you. It is not only about setting a precedent but also about the risk of collection, which is important.
From India, Kannur
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4526In business, personal sentiments should not be given priority over the policies set by the company. Such situations can happen to anyone. You have already helped him by offering a job in your group company after he withdrew his PF and collected gratuity from the parent company. That itself was an exceptional gesture. Again, if that person is not in a position to make ends meet, we should acknowledge that we are helpless. If you deviate from the company policy and provide such a large advance, say more than three times what he is eligible for, and if something happens or he does not show up after receiving this amount, everyone will blame you. It is not only about setting a precedent but also about the risk of collection, which is important.
From India, Kannur
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Employee reference policy.doc