In my company, there is a boy 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 that he needed money desperately, so we allowed him to quit, encash his PF and gratuity, and rejoin a sister company so he could get some immediate cash. He still needs more money to pay off high-cost outside 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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Last year, he requested that he needed money desperately, so we allowed him to quit, encash his PF and gratuity, and rejoin a sister company so he could get some immediate cash. He still needs more money to pay off high-cost outside 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 business, personal sentiments should not be given priority over the policies set by the company. Such things happen to anyone. You have helped him by offering a job in your group company after withdrawing PF and collecting gratuity from the parent company. That itself was done out of the way. Again, if that man is not in a position to make both ends meet, we should say we are helpless. If you deviate from the company policy and pay such a huge advance, say more than three times higher than what he is eligible for, if something happens or if he does not show up after receiving this amount, everybody will blame you only. It is not only setting a precedent but also a risk of collection, which is important.
From India, Kannur
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4490From India, Kannur
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You are working in a company, and helping others is also important and a good gesture. However, you have to work within the framework of the organization. It means the interests and requests of your subordinates should not be given an overriding priority over the interests of your company.
You have helped him to the maximum extent possible. There ends the matter.
From India, Aizawl
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You have helped him to the maximum extent possible. There ends the matter.
From India, Aizawl
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Employee reference policy.doc