Is It Legal For Me To Loan Money To A Subordinate

Synopsis

In that location'south no easy way to demand your own coin back. ET Wealth tells you how to tackle the tricky state of affairs without disturbing the frail relationship.

A simple, constructive way is to meet the colleague ane on one and bring up the issue.

It requires skill and try to keep your relationship with the boss and colleagues on an fifty-fifty keel. Bring money into this equation and the skew can impairment the delicate balance at the workplace. While lending money is never a practiced thought, it should be completely avoided when information technology comes to co-workers. The state of affairs can become more complicated if your dominate needs financial assistance and, worse, does not render the money. Should you write off the amount or observe a mode to recall it? Earlier you do either, consider the following:

Offer only the money y'all tin can spare and are prepared to write off considering there is a high probability you lot will never see it once more.
Give money only if the co-worker is facing a 18-carat fiscal crunch, not if he needs information technology for a discretionary spend.
Check if the colleague is a habitual borrower and has asked other co-workers for money as well. Do not lend in such a case.
Don't exist pressured into departing with your money if you lot don't accept a good equation with the boss because information technology's a sure-fire yous will not become it back. However, practise then in a non-offensive manner by citing, say, a personal crisis.

If you have already loaned the money and have non got it back, one possibility is that the borrower has only forgotten nigh information technology. In such a instance, a gentle reminder will serve the purpose. If not, follow this strategy:

1. Don't look for besides long
If the co-worker has promised to repay the amount in the side by side pay wheel, expect for information technology. If no time frame has been set, exist proactive and don't let too much time lapse before reminding the person. The longer you wait, the higher the probability that you will non get your coin back. Some other likely fallout is that, with fourth dimension, your human relationship with the co-worker is jump to go strained in part, which may affect your work.

two. Make it curt and direct
Don't ready an elaborate asking, blazon out a long mail, or send out a Whatsapp bulletin. A simple, effective way is to meet the colleague ane on one and bring up the event. Avoid a confrontational posture and remind him gently about the pending payment, proverb, "I simply wanted to know when you are planning to return the money." Do not accept vague commitments like, "In two or three months." Get the colleague to seta articulate engagement and, if he doesn't render the money by this deadline, approach again.

3. Make the render easier
Information technology is possible that the co-worker is facing a genuine crisis and finding it difficult to pay back the lump sum. In such a instance, make it easier for him by staggering the payment over a few months. You could suggest postal service-dated cheques as instalments or enquire him to transfer through payment apps or wallets on a fixed engagement every month. Another option is to have the colleague do something for you lot in exchange, say, drop you domicile or pay for something you lot were planning to purchase. He could also cover your contribution at the next outing or repast, or pay for you lot in case of a gift existence given to a colleague. This approach could also work in the example of a boss every bit it may not be easy to confront him or remind him in person.

4. Bring in the urgency
If yous need the money badly, endeavor to convey the urgency to the co-worker. This can be done directly by citing the reasons you demand it for, say, an upcoming big payment, or a personal financial crisis, or fifty-fifty a medical emergency. For additional pressure, yous could remind the colleague publicly by declining an outing, citing lack of money, or through pointed remarks about your financial situation.

If you have a wealth whine, write to us...
All of united states have been in a financial dilemma when it comes to relationships. How practise you say no to a friend who wants yous to invest in his new business venture? Should y'all have a loan from your married brother? Are you concerned about your wife's impulse buying? If you accept any such concerns that are hard to resolve, write in to us at etwealth@timesgroup.com with 'Wealth Whines' as the subject.

Disclaimer: The advice in this column is not from a licensed healthcare professional and should not be construed equally psychological counselling, therapy or medical advice. ET Wealth and the author will non be responsible for the outcome of the suggestions made in the column.