Acknowledgement of Debt by an Employee

Description

ACKNOWLEDGEMENT OF DEBT BY AN EMPLOYEE

Summary An Acknowledgement of Debt by an employee may be used where a debt is owed by an employee to their employer. The AOD can be used to acknowledge and confirm that a debt is due, and to specify that the debt is payable in a number of instalments.

Why do I need an Acknowledgement of Debt by an employee? If you have employees that owe the company money, an AOD may be used to specify the amount owed and the agreed payment plan. An Acknowledgement of Debt confirms that the employee owes the employer a debt, and sets out an undertaking by the Employee to pay the debt in regular instalments at agreed intervals. The AOD also provides for an authority for the employer to deduct the agreed instalments from the employee’s salary.

What does the Acknowledgement of Debt say? The acknowledgement sets out: The Employee’s details; The amount of the debt; The repayment details; Authorisation to deduct from salary; Default and costs.

What does the template look like? The template AOD can be printed onto three pages.

What do you need to do to use the Acknowledgement of Debt?

• Read the document to ensure that it suits your requirements. Make changes as required.
• Complete the relevant details, and get the Employee to sign.

If the transaction is subject to the National Credit Act 34 of 2005 then a specialist’s advice should be sought.

Also known as: Payment Undertaking; AOD; Employee Payment Undertaking; Employee AOD; Staff Payment Undertaking; Staff AOD; Staff Acknowledgement of Debt.

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