Employee Emergency Fund

Jarrett

Does anyone currently have an Emergency Fund for employees you would like to share? We currently have a Personal Leave Donation Policy, but are thinking about financial assistance for emergencies with an employee and/or his/her immediate family with an annual cap.

Any assistance would be appreciated. You may email me directly

[email]jjarrett@groveparkinn.com[/email]

Margaret Morford

I set one up at my last company that the company put $15,000 in initially. We could loan (sometimes grant) people money from it. When we loaned, we charged 1% over prime interest. The employee signed a promisory note that allowed us to take the balance out of their last check, vacation days, etc. The interest built up in the fund and was used when we made a grant. Our policy required that the employee exhaust all other means first and provide proof of that exhaustion. We would only loan money for necessities like utilities, car repairs, etc. - not credit card balances or large long distance phone bills. I have a two page policy I'll fax you if you like.

Margaret Morford
theHRedge
615-371-8200
[email]mmorford@mleesmith.com[/email]
[url]http://www.thehredge.net[/url]