Employee Debt Counselling

Employee Debt Counselling

Informal and Formal Employee Debt Counselling

In the event that a person has repeatedly failed to meet his financial commitments to one or more of his or her creditors, they may take legal action and submit the matter to the Magistrates court. The Magistrates court can then take a variety of actions against the debtor to ensure that they pay their debt. One of these actions is to supply the debtors’ employer with a salary garnishee order. This means that the employer must deduct a specified amount from the relevant employees’ salary at the end of each month and pay it directly to the creditor before the employee receives his salary. If you, as an employer, have received any garnishee orders for your staff members, it may be time to consider offering employee debt counselling to your staff.

Employee debt counselling can involve formal or informal restructuring of an individuals’ debt. Informal restructuring will involve a debt counsellor working through an employees’ budget and eliminating any excess expenditure. The debt counsellor may also intercede with their creditors to negotiate lower interest rates or monthly repayments that may be more affordable to the employee. The formal restructuring process involves the debt review process as instituted by the National Credit Act of 2007. This will mean that once the debt has been restructured using the above process, the new repayment will be submitted to the National Credit Agency to whom the employee will make all future payments.

An over indebted employee will be under considerable stress and will therefore not be able to function optimally in the work place. You can assist your employees with clearing their debt and ensure that they offer your company their best simply by offering them a simple debt counselling service.

To find out more about how you can give your staff members access to employee debt counselling as well as the debt review process, please contact us.

By | 2018-05-22T10:10:03+02:00 May 18th, 2018|Uncategorized|0 Comments

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