Collection Of Exited Staff Indebtedness
We have made great advances in its Triple “P” approach towards recovery of employee obligations; Persuade, Persist & Prevail. Employers sometimes assist struggling employees with personal loans or payroll advances. If the employer terminates the employee, the employer may lose the payroll advance. Even if you have a signed contract with the employee that addresses the possibility of termination, some of the provisions may be unenforceable.
Employers occasionally allow their employees to take paid vacation time off before it is actually earned. While the area of vacation pay has many pitfalls for employers, getting an employee to acknowledge in writing that the paid vacation time is being received before it is actually earned (and, therefore, is really an advance of unearned vacation pay), may go a long way to establishing an employer’s ability to set off paychecks in the future, if it is never earned.