Employee loan template uk

However, an employee may have personal reasons for requesting a loan from the company for unforeseen expenses, emergency or hardship and need not disclose the reasons in detail. Note: Visit our Employment main page for links to all the relevant free legal forms for the work place and their related guidelines.

The employee loan or debt agreement below also makes provision for the full amount to be deducted should the employee resign. However, this may be seen as an acceleration of debt repayment i.

The employer would therefore be wise not to extend loans greater than the weekly or monthly salary. A more extensive installment loan agreement should be drawn up for longer term or large loans, which can endure beyond the term of employment. There are particular conditions that are necessary to be applied in various loan agreements.

Recording these conditions along side all the important information that the borrower and the lender should be knowledgeable of in a well-formatted and comprehensive Agreement Form can provide a positive impact to the professional relationship of the parties.

You are here: Home » Tax and Business » Financial management and accountancy » Finance function » Employee loan agreement. Tax and Business. Introduction to this document Employee loan agreement Loans to employees provided for the purchase of season tickets, cars, bikes or any other purposes must have documented terms and conditions so that confusion is avoided at a later date.

Loan agreement The loan agreement should set out the name and address of the lender and borrower and must be signed by both parties. Please note that we would always strongly advise you to seek independent, professional legal advice before entering into a binding contract. Our expert solicitors provide guidance as to the meaning and effect of contract clauses. We are able to draft bespoke agreements for simple and complex arrangements alike, at a competitive fixed fee.