REACTION (PTY) LTD
DOMESTIC/REACTION/SALES
STANDARD OPERATING
PROCEDURE MANUAL
DQS ISO 9001-2008 / COMPILED: / PAGE NO. / 1 OF 5.
PROCEDURE NO / SS/SOP/53
REVISION NO. / 0
APPROVED BY: / INITIAL DATE / JULY2011
EFFECTIVE DATE / JULY 2011
REVIEW DATE / AUGUST 2012
COMPANY POLICY – STALLION SECURITY (PTY) LTD
DEPARTMENT -COMPANY
ACKNOWLEDGEMENT OF DEBT
  1. OBJECTIVE

1.1To assist employees when he/she is required to purchase a Company provided service (eg training) or Company requirement (eg uniforms).

1.2To acknowledge indebtedness in the event of any repayment.

In general, the Company does not provide loans or advances as it is not a financial service provider, however this policy outlines the exceptional circumstances where loans / advances will be granted to purchase Company services and Company required items / issue in order to prevent employees from getting into a bad debt cycle.

  1. POLICY

2.1Advances / Loans will be granted when such loans are in respect of Company provided training, Company required uniform, damage caused to Company- and Clients’ property where such a decisions has been taken by EXCO and/or other purchases from the Company and/or repayment thereof.

2.2At no time will any interest and/or any fee of any type be charged on any indebtedness.

2.3The loan term may not exceed 6 (six) months and the payments may not exceed 25% (twenty five percent) of the employee’s take-home pay.

  1. PROCEDURE

Acknowledgement of debt / Indebtedness (Annexure A1 and A2)

3.1A completed indebtedness application form (ANNEXURE A1) must be submitted to the employee’s line manager for completion by the employee. The employee and the Line manager must confirm the reason(s) why the loan is required from the reasons provided on the application form. If the Line Manager does not have signing authority for loans, the loan form must be countersigned by a higher level manager who has such authority.

3.2The employee must complete and sign the acknowledgement of debt form (ANNEXURE A2).

3.3The Manager authorizes payment by signing the Indebtedness forms whereafter it is recorded in the Acknowledgement of Debt register (ANNEXURE B) and submitted to payroll for processing.

In the event of any exceptions where loans or advances do not conform with this policy and are operationally required, these areas must be approved by EXCO and signed off by the Managing Director.

Acknowledgement of Debt Register (Annexure B)

3.1.1The Acknowledgement of Debt Register is completed for every form that is submitted to payroll after it was duly authorized.

3.1.2The serial number must be allocated per month for example if it is the first indebtedness form registered for August 2010, the serial number will be 1/08/ 2010. At the end of every month a line must be drawn and the new month should start at number 1 again.

ACKNOWLEDGEMENT OF DEBT AND AUTHORISATION TO DEDUCT FROM
SALARY/WAGES OR BENEFITS
I, the undersigned (co no, surname and initials) …………………………………………………………………………………………
(Hereinafter referred to as the DEBTOR), hereby authorise the Company (Hereafter referred to as the CREDITOR) to deduct R ………………….. (amount) from my salary for the month(s) commencing on …………………………. 20 …. and ending on ……………………… 20 …. In monthly installments of R ………………………… (amount) per month or as a lump sum (Delete which is not applicable)
I agree that I am duly indebted to the Company for the aforementioned amount in respect of (tick applicable reason)
_____ Uniform ordered
_____ Recovery of advance
_____ Training
_____ Other
If OTHER, please specify : ………………………………………………………………………………..…………………………………
In the event that the debt amount exceeds R5000.00 (Five thousand rand) at least 4 (four) EXCO members are required to sign this form prior to payroll being authorised to implement advances and/or deductions :
______
EXCO Signature Name
______
EXCO Signature Name
______
EXCO Signature Name
______
EXCO Signature Name
The DEBTOR and CREDITOR acknowledge that they have freely and voluntarily entered into this agreement and that neither one of them has been coerced, unduly influenced or pressurised into entering into this agreement.
Should the DEBTORS’ service with the Company be terminated for any reason whatsoever before repayment has been made in full, the DEBTOR hereby authorises the CREDITOR to deduct the full balance outstanding from any monies due to him/her, including, but not limited to salary, wages, leave pay and refund of provident fund contributions.
The CREDITOR and the DEBTOR specifically acknowledge that his document records the full terms of the agreement between them and that no alterations hereto shall be of any force or effect unless reduced to writing and signed by both of them.
The CREDITOR and the DEBTOR further specifically agree that no indulgence granted by either one of them to the other shall be interpreted in a renewal of this agreement or as waiver by either one of them of any of their rights in terms of this agreement.
Notwithstanding anything to the contrary, any provision of this agreement which contravenes any legislation or which is otherwise ultra vires, void, voidable or unenforceable, shall be severable from the rest of this agreement, such rest thus being and remaining in full force, effect and enforceability.
______
Signed (DEBTOR) Date

For Completion by Payroll Administrator

Date received by payroll :______

Date amount processed :______

Date of deductions : ______

Name :______Signature : ______

APPLICATION FOR ADVANCE (INCORPORATING ACKNOWLEDGEMENT OF DEBT)

EMPLOYEE DETAILS

SURNAME AND INITIALS : ______COMPANY NUMBER ______
DATE EMPLOYED : (Must be first month of employment) ______
MANAGER : ______
AMOUNT APPLIED FOR R ______ (Amount in words) ______Rand
DIVISION : ______DEPARTMENT ______
I understand that this advance will be deducted from my salary at the end of the same month in which the loan is applied for.
REASON : ____ RELOCATION ____ TRANSPORT ____ SITE SET UP ____ OTHER (specify) ______

FOR OFFICE USE ONLY

Please circle applicable option : APPROVED DECLINED
Date of repayment (month end) ______
AMOUNT AUTHORISED R ______
NAME (H.O.D) ______SIGNATURE OF AUTHORISATION (H.O.D.) ______
NAME (DIRECTOR) ______SIGNATURE APPROVAL (DIRECTOR) ______

ACKNOWLEDGEMENT OF DEBT AND AUTHORISATION TO DEDUCT ADVANCE FROM SALARY/WAGES

If this loan application is approved, I the undersigned (surname and initials) ______hereby authorise the Company to deduct the above amount from my salary for the month of ______20___
Should my service with the Company be terminated for any reason whatsoever before repayment has been made in full, I hereby authorise the Company to deduct the full balance outstanding from any monies due to me, including, but not limited to salary, leave pay and refund of provident fund contributions.
______
SIGNATURE EMPLOYEE DATE

For Completion by Payroll Administrator

Date received by payroll :______

Date amount processed :______

Date of deductions : ______

Name :______Signature : ______

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ANNEXURE B

ACKNOWLEDGEMENT OF DEBT REGISTER
SERIAL NO / DATE / CO. NO. / SURNAME AND INITIALS / AREA / REASON FOR INDEBTEDNESS / AMOUNT AUTHORISED / SIGNATURE MANAGER

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