1. #1
    Unregistered

    Criteria for Granting advance payments to employees?

    I am an employer of electronic company which is private concern. I have an organisation of 40 employees. I wanted to know the criteria for granting advances to employees when they ask in need and the norms if they are unable to pay them back.

  2. #2
    SKS Array
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    Sep 2012
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    331

    Re: Criteria for Granting advance payments to employees?

    Rules with regards to advance payments made to employees vary from Company to Company.

    But you can consider below points before you grant advance payments-
    - Employee should have completed atleast a minimum of two years of service in your company( The tenure can be changed as per your company norms)
    - There should be no Disciplinary actions taken against the employee till date while working in the company
    -Advance payments can be made based on his current salary. For example max limit can be set at 25% of his annual salary
    - Return of Advance payment can be done either by deducting the amount from his upcoming monthly salary as EMI
    -OR he returns the whole money withinn 6 months or he does not take the salary in coming months equal to the amount of money taken as advance.

    If they are unable to pay them back, than you need to deduct this amount from his upcoming salaries

  3. #3
    Ashok Array
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    Jul 2012
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    Re: Criteria for Granting advance payments to employees?

    Dear Aspirant,

    It is the policy making of the company.Generally advance payment is paid equal to the amount of one month salary in case of the transfer of the concerned employees.The amount is recovered in three equal intallments.You can make provision of paying loan to the needy employees with the interest lower to the interest of banks.This facilities can be provided to the permanent employees.The amount is to be considered on hte basis of length of services remaining.You can get guaranteer as of banks for disbursement of loan amount.The recovery should made on the basis of EMI as of the banks.

    Thanks.

  4. #4
    vijaybanna Array
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    Re: Criteria for Granting advance payments to employees?


    Dear Aspirant

    Yes you can get the advance payment but there are some conditions for that..

    You have satisfy these to get the advance payment..

    You should be permanent in the company..

    There has to be a Guaranteer in the company for you..

    You can only get 1 month salary in advance..

    The repay will be done in 3 EMI maximum.

    You can take advance payment for not many times only some chances are allowed.

    ALL THE BEST

  5. #5
    Suraj Array
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    Re: Criteria for Granting advance payments to employees?

    It is depends on the compnay policy and their management regarding their employees. All those empolyees can get payment in advance who are have working in the organisation for a long time and they have become pure assests of the company. There are some legal procedures to recover the advance payment if the employess abscond or left the company without any information or without paying that amount to the company. Company can also ask them to penalty along with the advance money given to them. In some cases, if the employee is not able to pay the amount, his monthly salary can be adjusted with that and that employee is liable to work for the company till reimbursement of payment.

  6. #6
    mithu ashi Array
    Join Date
    Aug 2012
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    21

    Re: Criteria for Granting advance payments to employees?

    As you are a employer then you can fix your own eligibility criteria. But you should
    be point out on following things to pay in advance. Just go through the following
    points:-

    --Work performance of that employee
    --From how many time they are working on your company
    --Goods of the employee
    --How much you can trust on that
    --He is following terms or condition of the company or not.
    --A perfect reason behind they are demanding the payment in advance

    If all the above things is fulfill by employee then you can give him the
    advance payment.

  7. #7
    Chittaranjan Array
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    Re: Criteria for Granting advance payments to employees?

    Before granting advance ear sir you are to follow your company's guideline regarding sanctioning of advance to a needy employee.Yet the steps you are to take.

    Whenever you grant payment their must be a repayment policy.you

    Nest you are to see whether company are to pay interest when they draw money from Bank for the purpose of advance.

    If yes you charge interest with the repayment installments.Because you are to see company never run in loss,

    Thank you,

  8. #8
    Boss Array
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    Re: Criteria for Granting advance payments to employees?

    Criteria for Granting advance payments to employees?

    Rules with regards to advance payments created to workers vary from Company to Company.

    But you'll be able to contemplate below points before you grant advance payments-
    Worker ought to have completed atleast a minimum of 2 years of service in your company( The tenure is modified as per your company norms)
    There ought to be no Disciplinary actions taken against the worker until date whereas operating within the company
    Advance payments is created supported his current earnings. as an example soap limit is set at twenty fifth of his annual earnings
    Come back of Advance payment is done either by deducting the quantity from his future monthly earnings as EMI Or
    He returns the complete cash inside half-dozen months or he doesn't take the earnings in coming back months up to the quantity of cash taken as advance.
    If they're unable to pay them back, than you would like to deduct this quantity from his future salaries.

    It is the political opinions of the corporate.Generally advance payment is paid up to the quantity of 1 month earnings just in case of the transfer of the involved workers.The amount is recovered in 3 equal intallments.You can create provision of paying loan to the impoverished workers with the interest lower to the interest of banks.This facilities is provided to the permanent workers.The amount is to be thought-about on hte basis of length of services remaining.You can get guaranteer as of banks for disbursement of loan quantity.The recovery ought to created on the idea of EMI as of the banks.

    Yes you'll be able to get the advance payment however there square measure some conditions for that..
    You've got satisfy these to urge the advance payment..
    You must be permanent within the company..
    There has got to be a Guaranteer within the company for you..
    you'll be able to solely get one ,month earnings before..
    The repay are tired three EMI most.
    you'll be able to take advance payment for not persistently just some likelihood is allowed.

    It is depends on the corporate policy and their management concerning their workers. All those workers will get payment before World Health Organization square measure have operating within the organization for an extended time and that they became pure assets of the corporate. There square measure some legal procedures to recover the advance payment if the workers expostulate or left the corporate with none data or while not paying that quantity to the corporate. Company can even raise them to penalty along side the advance cash given to them. In some cases, if the worker isn't able to pay the quantity, his monthly earnings is adjusted therewith which worker is susceptible to work for the corporate until compensation of payment.

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