Employer charging interest on loan. Is that legal?

Question

An employer is charging interest on money loaned to the employee without prior mutual agreement. But employer is now demanding for repayment including interest. Is this legal?

Answer 1

No!!!!!!!!!!!!!!!!!!!! report & sue them!!!!

Answer 2

You can argue it in a court of law...small claims court if its less than 5000, but you will have to prove that there was no prior arrangement with regards to repayment of any interest.

If he conceeds it under oath, then there you have it. However, if he says interest was agreed upon then here is where tha game begins

One good thing you have is the fact that it doesnt sound like a contract or anythign was signed. So it could just end up that the judge tosses it out and rules in your favor because he has nothing to prove he required interest. Which was his loss.

But, the moral issue would be if an employer was helping that employee out of a jam, then isnt it fair that the employer get something back.

I dont know the details, but Im sure this could avoid escalating if the employee just openly talked with the employer and let the employer know that they might be short on money.
But if the employee has the money to spare, then I say stop being a stingy person, repay your debt and be grateful the employer helped you out in the first place.

Answer 3

If money was borrowed, there was at least some kind of arrangement made. If there is a written agreement, the interest rate should be stated. Without a written contract, there is lttle legal recourse.

Answer 4

What percentage? Yes interest is legal as long as it is not usery. However without prior discussion it is unethical. However you borrowed money from your boss, which is bad business in a lot of cases.

Do you want to keep your job? Pay the money. If you don't don't pay and see how bad things get.

Answer 5

i might think of the reason the business business enterprise is charging activity is by technique of the fact the worker left the organization and nonetheless owes funds to the business enterprise. i might examine with an lawyer to work out what the regulation says.