Wage advance

Wage advance

Can my employer refuse me a payday advance?

A project, financial difficulties … An employee always has the opportunity to ask his employer for a payday advance.

A payment that meets the strict rules and well-defined terms of repayment. Explanations.

What is a payday advance?

The term may sound simple, but the payday advance is a legal concept, to differentiate the interim salary. This corresponds to the payment of money for work already performed, while the advance is paid for future work. And these two concepts meet own rules.

First, nothing obliges an employer to pay a payday advance. Some small businesses, given their cash can not afford it.The employer is also not obliged to justify any refusal or respond within a specified time.

What are the rules to follow?

Unlike the deposit whose amount can not exceed fifteen days wages, the law sets no limit to the amount of the wage advance: it is free, as his payment method.

The refund, however, is strictly limited! The Labour Code specifies in fact that an employer can not operate upper retaining 10% of the net salary of an employee. Consequence: repayment must often be spread.

An example: your net monthly salary is 1,800 euros, and you get a lead of 800 euros. Your business can not deduct more than 10% to pay in advance or 180 euros per month. Deductions will be spread over the number of months needed to repay the amount (that is to say, here, 4 and a half months).

Of course, this limit is a maximum, and can be quite spread further reimbursement. The employee can also make voluntary contributions, the amount of which is free, without providing for deduction from his salary.

Although the signing of a written agreement is not binding, can not be too advise! To anticipate any dispute, ensure that this document mentions the advance amount, method of payment and any repayment.

Some tips to make your request

First tip: play cards on the table! You have to give your employer all information to understand your request.

Although a written request is not mandatory, this one is highly recommended. Why do you need this money? How and when do you pay? Give precise deadlines, not to mention your full name and address and the date of your request.

then request a consultation with your dedicated contact. During your meeting, your letter will serve you support.Provide a copy to give him. The goal is to create a sense of trust: you have thought and thought of everything!


Wage advance

How to ask for a deposit to his employer

If you temporarily have some financial difficulties due to unexpected expenses, you can claim a deposit to your employer.

If you are short of money, you can request an wage advance on your next paycheck to your employer. This will pay you the early part of the wages he owes you for the work already done.This deposit, you can claim that you are full time or part time, on a permanent or fixed term.

If you monthly installments

By law, you are entitled to a corresponding deposit for a fortnight, half of the monthly salary, provided to make the request. The deposit can only correspond to a work already done. So you can ask 16 January a deposit of half your salary but not three quarters.

It may be helpful to consult the collective agreement to which you belong and learn about the uses in the business. You will perhaps find more favorable provisions than the law, as the possibility of obtaining a deposit equivalent to three quarters of earnings from the 15th.

If there is no use in the company and if the collective agreement is silent on this subject, you will not be entitled to the maximum, as the legal deposit.You can ask your employer more but it is free to refuse.

If you are not broken down by month

Your salary is paid twice, sixteen days at the interval (Labour Code, Article L. 3242-3). If you are paid on 2nd and 16th of each month and if you want a deposit between these dates, 25 for example, it depends on what provides the collective agreement or the company uses. If nothing is provided, the employer may deny your request.

If you make a piece work lasting more than two weeks, you must receive a payment every fortnight

If you are a temporary worker,

generally you are not broken down by month, and your salary is paid in two installments. However, do not hesitate to ask for a deposit to your employer (employment agency).

What steps?

It is best to submit your request in writing or on a form made available by the employer or on plain paper.Mention your name, the date of the request, the department in which you work, the amount of the required deposit and sign.

Upon payment of the deposit, the employer will have you sign a receipt for the amount of deposit received and the date on which you touched.

What is the amount of down payment?

The amount of the deposit can not exceed the salary you actually earned on the date of the request.

Example: January 10th, you can request a deposit of your first ten working days in the month; you earn 1,500 euros net per month. You ask 16 January a deposit of 50% of salary. The employer then pays you 750 euros in cash if you like, or by check or transfer. The deposit is obligatorily paid by crossed check or transfer beyond 1500 euros net per month.

The advance is it subject to payroll taxes?

The employer does not levy any social security contribution on the deposit paid to you (if you ask 500 euros, you receive this amount without any deduction). Contributions are deducted at the end of the month on the entire salary, including down payment.

Good to know: social contributions applicable to the deposit are those in effect on the date of payment and not the date of payment of wages to pay. The courts have said about the general social contribution (CSG).In this case, the rate of the CSG was increased from 1.1% to 2.4% between the payment of the deposit and the balance of pay (Cass. Soc. 18 February 1999 Urssaf Lille) and employer had improperly applied the rate of 2.4% for the whole salary.

At what time the deposit is it deducted from the salary?

The employer deducts the deposit of your next payday, that is to say at the end of the month or early next month if you are usually paid earlier this month. Special mention the amount of the deposit is stated on your payslip.

So if your net monthly salary is 500 euros of1 and you received 20 January a deposit of 700 euros, 700 euros these are deducted from your pay in January you touch late January or early February. So you experience a balance of 800 euros.

Deposit and payday advance, what difference?

The wage advance corresponds to prepayment of part of the wages that the employer owes you for the work you have already done.

The advance corresponds to the payment of wages for work that has not yet been realized. The employer has the opportunity to give you an advance for an amount greater than a payday. When you advance was made, the repayment terms are determined strictly by the Labour Code: your employer can retain only 1 / 10th of your salary


Payday Advance: 3 questions to ask before pouring

Your employee asked you a payday advance. Advance amount, repayment terms, with the deposit difference … Here are three questions you need to ask yourself before you accept or decline the request.

What is the difference between the advance and the deposit?

The payday advance returns to lend money to the employee, he will repay you. Contrary to the deposit, advance corresponds to a sum of money paid to the employee for a job he has not done .

1/10The repayment of the advance is limited to 1 / 10th of the monthly payroll

It therefore results in the prepayment of part of the salary to be due to the employee for work that has not yet realized.

Conversely, a down payment corresponding to the payment in advance of part of the salary but for work that has already been done by the employee.

Do I have to pay a payday advance?

When your employee is seeking a payday advance, make sure it does not ask you, in fact, a down payment. It is important to make sure of that, because the answer to the question “Do I have to accept the employee’s request” depends.

If it is a deposit that you request, you are legally obliged to accept his request, he is in CSD or CDI.

However, if this is an advance that solicits, you have no obligation to pay it. So you are totally free to accept or refuse the request of your employee. Before making your decision, make sure you have weighed the pros and cons. Know for example that you may experience difficulty in obtaining refund your money if your employee leaves the company earlier than expected.

If you accept the request, the amount of the advance is free and can be paid by cash, bank transfer or check.

How to recover the money paid to the employee?

If the amount of the wage advance is free, as reimbursement is governed by the Labour Code.

The recovery of this money may be retained by the following successive paydays, but the amount of these deductions from wages is capped at 1 / 10th of each pay (1) .

For example: Your employee earns 1,500 euros net per month. It asks you a lead of 600 euros.
You decide to grant him. The refund will be done over a period of four months since you can not refund the sum of 150 euros per month (1,500 euros 1/10). 150 euros × 4 months = 600 euros.

You can also agree with your employee to reimburse in a shorter time and in this case the ceiling 1/10 does not apply. However if it does not comply, you will have no alternative but to make a salary deduction within the limit of 1 / 10th of each pay.

If the employee leaves the company before completing to refund its debt, a deduction from the final settlement is possible but beware, you will respect the rule of 1 / 10th for all elements that have the character of pay (payment in lieu of paid leave, payment in lieu of notice …).

However, you can repay you in full on redundancy payments because they do not have the salary of character. If, despite this compensation, your employee still owes you money, you will have no choice but to go to court if he refuses to make you money itself.