EMPLOYEE LOAN AGREEMENT
BETWEEN
__________, of __________, acting through __________, __________ (the "Employer");
AND
__________, employee ID __________, designation __________, PAN __________, of __________ (the "Employee").
The Employer and the Employee are each a "Party" and together the "Parties".
RECITALS
A. The Employee is employed by the Employer as __________.
NOW THIS AGREEMENT WITNESSES as follows.
- 1. THE LOAN
1.2 The loan is personal to the Employee and is not assignable by the Employee to any other person.
- 2. INTEREST
- 3. RECOVERY
3.4 The Employee may prepay the outstanding balance in whole or in part at any time without penalty, and a prepayment is applied first to interest accrued and unpaid and then to principal.
- 4. EVIDENCE OF DEDUCTION
4.1 The Employer shall show each deduction made under clause 3.2 separately in the Employee’s salary slip for the month in which it is made, so that the Employee can verify the running balance of the loan at all times.
- 5. ON CESSATION OF EMPLOYMENT
5.2 Where clause 5.1 permits adjustment against full and final settlement dues, that adjustment remains subject to the deduction limits in s.7(3) of the Payment of Wages Act, 1936 to the extent that Act applies to the sums being settled, and any balance the settlement dues are insufficient to cover remains recoverable from the Employee as an ordinary debt.
- 6. REPRESENTATIONS
6.1 The Employee confirms that the particulars given in this Agreement are true, that the loan is sought for the purpose stated in Recital B, and that the Employee is not restricted by any other agreement from taking this loan or agreeing to the recovery method in clause 3.
- 7. DEFAULT
7.1 If the Employee’s employment ends and clause 5.1 makes the balance immediately due, or if any instalment under clause 3.2 remains unrecovered for reasons other than the Employer’s own error, the Employer may recover the outstanding balance, with interest accrued to date, as a civil debt.
- 8. GUARANTEE
- 9. STAMP DUTY
- 10. CONFIDENTIALITY
10.1 The terms of this Agreement are confidential between the Parties, save that the Employer may record it in its books of account and payroll records as it is required to for tax and audit purposes.
- 11. NOTICES
11.1 Notices under this Agreement shall be in writing and delivered by hand against acknowledgment, or by registered post or courier with proof of delivery, to the Employer at __________ and to the Employee at __________.
- 12. DISPUTE RESOLUTION AND GOVERNING LAW
- 13. GENERAL
13.1 This Agreement is the entire agreement between the Parties about the loan described in it, and supersedes all prior discussion of it.
13.3 This Agreement does not vary the Employee’s terms of employment except as expressly stated in it, and does not itself guarantee continued employment for any period.
13.4 If any provision is held invalid or unenforceable, the rest of this Agreement continues in effect.
SIGNED AND DELIVERED by the EMPLOYER
__________
Through: __________, __________
Signature: ______________________________
SIGNED AND DELIVERED by the EMPLOYEE
__________
Signature: ______________________________
WITNESSES