Hi. I was wondering if anyone had come across a neat solution to mitigate the risk of employees leaving early owing a balance on, for example, a Bike (via Bike4work) or a laptop (via a home tech scheme). Where the balance can’t be collected from last month’s pay, sometimes recovering the balance after leaving can be time-consuming. It’s not a perfect solution, but I’ve been considering inserting a direct debit into the benefit order process – the DD could be moth-balled and only triggered if needed after leaving. Has anyone tried this – or got another solution? Many thanks.
Hello Ian. I've not found a perfect solution to this one I'm afraid but have put realistic caps on the benefit value available in these schemes to support reclaim issues - so for example our tech scheme is limited to a £400 loan.
No solution to this specifically, but we do place a 30% gross salary cap on overall loan benefits/salary sacrifice benefits (excluding pension as we can simply stop this if there isn't enough salary after repayment) to give us the best chance to be able to recoup the balance in their final pay.
Hi Ian. I haven't found a way to tackle this unfortunately. We just follow our standard overpayments process for any amount we're unable to recover from an employee's final pay. Including a DD sounds a nice idea but not sure if there will be any form of Financial Regulatory compliance that would need to be covered to do this. Ian