Credit can be a tool - then that's good, or maybe bondage - that's bad. For a reasonable person, credit is a useful financial instrument that should be used correctly. It is unreasonable to be afraid of loans: such people look old-fashioned.
For example, a mortgage is a loan that motivates an employee: they buy an apartment meaningfully. It is also a sign that the employee will "hold on" to work. If the employer does not regularly pay remuneration to the team, then employees with a mortgage tend to look for other companies with a stable remuneration system.
1. What problems can be faced by the employer? How to minimize risks?
Delinquent loans and other unfulfilled obligations, such as non-payment of alimony, damage the employee's image. The existence of a writ of execution cannot harm the employing company economically, but will add operational tasks not related to the functioning of the business. This is not just unpleasant - communicating with the bailiffs, transferring money to pay off debt, keeping track of the amounts and writing quarterly reports - but it also eats up the time of the responsible employees.
2. Is it necessary to check the employee's debts at the hiring stage? If so, how should this be done?
I can understand companies that prefer to break off relations with debtor employees. To reduce the risk of hiring a person with poor payment discipline, you should carry out a minimum check: independently request recommendations, contact former employers, view information about the candidate in search engines and social networks. This is usually enough to identify people with bad credit history.
3. In what cases is the employer responsible for the employee's loan?
When an employee takes out a loan, he provides the bank with information about the employer and the amount of salary. Therefore, the employer becomes a kind of loan guarantor. Therefore, confirming the employee's income, you need to understand the possible consequences, the most unpleasant of which is the collectors. Even after an employee leaves the company, they can call for years, since the employer's phone will remain the only relevant information related to the debtor.
4. What should I do if the employer has received a writ of execution for debt collection?
If the employer company has received a writ of execution, you will have to pay. The writ of execution can be returned only in case of dismissal of the employee. Remember that the loan debt is not a reason for termination of the employment contract at the initiative of the employer.
5. What should I do if collectors call the office?
You don't need to answer calls or confirm your employment, unless the employee has requested it in writing. This can become an unpleasant routine when the Secretary regularly listens to insults or admonitions from collectors.
6. Have you faced such a problem? How did you solve it?
The problem of debtors and enforcement proceedings is present in 20% of companies. We provide our clients with services for the calculation and payment of wages, therefore we meet such situations regularly: we deduct amounts from wages and make payments for light, fast driving and violation of parking rules :)
Read the opinion of other business leaders in Kontur magazine.