Four of the many reasons your workers don’t ask for a payday advance
According to the OCU, 75% of families cannot make it at the end of the month, due to the fact that many unforeseen expenses occur frequently that affect their economic stability (the car breaks down, you have to pay a fine, fix something at home, etc. others). This is why, in this situation, your workers feel uncomfortable when it comes to approaching you directly to ask if there is a way to advance their payroll.
However, this is a practice protected by the workers’ statute. In Article 29, it states that workers have the right to receive advances for work they have already done without having to wait for the day the company pays them.
As it is a right for workers, you will have to advance their payroll for the days worked if they request it. However, many people who find themselves in this type of situation do not ask upfront. Why Accrual can help.
Reasons your workers aren’t asking for advances
There can be thousands of reasons why your employees don’t ask you for payroll advances. Next, we’ll show you the top four reasons your coworkers don’t ask you upfront:
Lack of awareness of their rights and of the legislation in force Most likely, your employees do not know that asking for an advance is a right that they have as workers. Regardless of their experience or professional rank, it is quite common for them to ignore certain aspects of the law, such as their right to request advances when their financial situation requires it. Out of shame or “what will they say?” Another reason is the shame or discomfort your workers may feel when they have to ask you for an advance on their payroll. So they let go and try to solve their problems in another way. Sometimes they also make the decision not to ask up front because of what other people may think, be it co-workers, friends or family members. The latter, usually, happens because they do not want to publicize their situation of instability or economic weakness, so they try to hide their financial problem as much as possible. Due to corporate bureaucracy, procedures are often so long or complicated that employees tend not to make these types of requests. In many businesses, this process can take several days, and if you add the hours for banking transactions, the employee’s request can be fulfilled four or five days later. An often vital moment, when the worker’s need for cash is urgent and which prompts some to give up and not ask their boss for the advance they need. Limitations of the company itself Each company sets the flexibility and amount of advances its workers can receive, so although the law indicates that this is a worker’s right, in many cases it is necessary to respect what the company specifies. For example, there are companies that limit the annual amount of advances, the days of the month they can be requested, or even the amount. These limitations, which help companies in their management and in the peace of their cash flow, sometimes collide with the needs of workers which are usually unforeseen and urgent.
Accrual, the financial solution for your workers
Considering the reasons why your employees do not request payroll advances, Accrual is the solution, as it allows your employees to access their accumulated payroll when they need it:
Discreetly and simply Automatically, from the mobile, at any time and in any place Without excessive commissions or interest Offer your employees the possibility of using Accrual.
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