My helper has just asked to borrow $10,000 HKD and return to the Phillipines for 5 days to sort out some legal problem with the family home (she is 66 years old). She has offered to pay back $1000 a month over 10 months, deducted from salary (she is 8 months into her 2nd contract with us). She has borrowed the odd small amount from us in the past but never a sum this large. I have reservations and would welcome any advice, such as what if she were to resign or we terminated? Thanks for any input you can offer
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well, always loan that much, over which you wont lose sleep if it is not returned, thats the general rule
Now decide if she takes 10K from you and not return, will you be ok ? if yes then give, otherwise flatly refuse that you don't give loans, she may make ugly faces but that will be ok after a few days.
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I have heard this story before. While the plot may be different, the end of the story is always the same - the helper never returns. 66 years old???
So, if you do not mind the (high) possibilty of losing $10,000 then sure, lend away.
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Well, I guess it depends on how long she's been with you and how trustworthy she has been. But you do risk her never returning. However, on the flip side, if she borrows from a loan shark, she is highly unlikely to pay it back because the interest is high. If she defaults you can look forward to months and months and months of harassing phone calls of which you can do nothing unless you only have a mobile and then maybe "blocknumber" will be enough. That could result in harassing visits and, depending on where you live, vandalism.
Having had the latter experience with my previous helper, I prefer to lend my current helper what she needs (within reason) but she has been working for me for about 8 years. However the borrowing started far earlier. But knowing the experience I had had with the previous helper she knew that I preferred her to come to me than to go to a loan shark.
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I wouldnt lend her a single dollar. Would you expect your employer to lend you money? Being a helper is no different.
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Hope you may get it back, but expect not to.
Never lend what you cant afford to lose or write off.
Again, better than her going to loan sharks.
50/50 chance.
The only parameter is will she return? What is.the consequence.of the legal issue not being resolved?
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here comes a loan shark...
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If she had worked for you for more than five (5) years, that HK$10,000 is much less than you would pay for her long-service gratuity.
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(Continued)
If she doesn't return from her leave, she would definitely be the clear loser in financial terms.
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How about you give her a month's salary up front, which is what you owe her if you terminate her. Then, if she comes back, you give her more. Is the long-service gratuity required? Sounds like she's worked for you 2.8 years so maybe give her 5-6,000 and hope she comes back.
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Rumours amongst the working force that this can be an excuse for "hit-and-run" . I have different helpers before, all 3 of them have relatives dying problems with money wanted and never returned.
I can sleep easily as if the money will not be returned... but the trust and betrayal feeling hurt so badly...we offer trust, but in return with no respect at all.
The heaven is watching.
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Totally agree with Bobby C, it would be unwise. Often helpers take out these loans on behalf of family and friends and then get fleeced themselves. You would most likely be doing not only yourselves a favour but her too by not lending it.
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Ed
10 yrs ago
JJ - I encountered exactly that problem with a guy who works for us in Bali --- he was being pressured by his brother to get a loan to contribute to building a new temple....
I sat down with him and worked out his finances --- and he agreed that taking the loan would make his family's life very difficult.... and he admitted he really didn't want to take out the loan... but he felt obligated to contribute...
To make a long story short what we ended up doing was advancing him 20% of his next month's salary ---- and we gave him a way out --- we told him to tell his brother that the boss would not lend him the amount asked for so there was nothing he could do about it....
He was most definitely happy with the outcome because he could pass on the blame to me.... and in doing alleviated the pressure on himself.
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If you think about it, if you terminate her, it would cost you around about HK$10k anyway with a month's salary + annual leave + air ticket.
So maybe you could consider it paying her due? Or do your own calculation with a month's salry + annual leave + one way air ticket and tell her that you can only afford to pay her that.
If she comes back, you save 8-9k in agents fees. So it's a win win situation. If not, then you've just paid her due.
I would ask her to be honest whether or not she intends on coming back though if you have kids and need to work. If she doesn't want to come back, then you could start looking for one now.
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bloomfieldtj..(OP),
So, what did you decide to do and how did it work out?
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Thank you for your informative responses & advice. In the end we told our helper we were not prepared to lend $10k but agreed to lend her $5k, which would equate to a month's notice salary anyway if she didn't return. She wasn't entirely happy with this, but tough. She went back to Manilla for a week and, yes, she did return!
I do wonder whether she might not have returned if we'd lent her the $10k, as we worked out that this sum would've been equivalent to her severance pay, but I obviously can't prove that. We made her sign a letter stating repayment terms and the fact that outstanding monies will be deducted in the event of resignation/termination.
Thanks for all your replies. Much appreciated.
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If she ask for the 2nd time... update us please.
Take care.
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