The ongoing bus strike's having much worse repercussions on commuters than expected. Not only are many getting to work late as they have to wait for taxis, but they're also spending more than before to get to work. That's why many are now approaching loan sharks to cover their new transport costs, sending them into a debt spiral. But you can save your employees from this debt problem by explaining your company's loan policy to them.
Have your employees been affected by the ongoing national bus strike?
They're not the only ones.
With no end to the bus strike in sight, commuters affected by a national bus strike have resorted to using loan sharks to pay for their daily transport, says the Cape Chamber of Commerce and Industry on Fin24
And this is likely to lead to a debt problem that the commuters will still be facing long after the strike's been called off, as they're not only paying more for transport to get to work, but also stacking up huge debts at loan sharks that they'll have to repay.
Staying home and waiting out the strike isn't an option either, as it'll leave them further out of pocket.
'The principle of no work no pay applies to employees who can't get to work because of the bus strike,' says Taryn Strugnell of the Labour Bulletin
But you don't have to leave your employees to suffer this fate.
You can grant loans to your employees to help them out of this unexpectedly tough financial time.
Do you have a loan policy in place? Make sure your employees understand how to use it!
The best way to do so is to make sure you have a watertight loan policy in place, says the Labour Law for Managers Loose Leaf.
Then, you'll need to make sure you specify the interest rate and terms of the loans in the loan policy.
Check the state of his finances before you issue a loan to an employee…
But it's also a good idea to ensure that the applicant can afford to repay the loan based on his other obligations.
This is a great option if your employees are worried about the hefty interest rate loan sharks tack on, and you'll be helping your employees avoid a garnishee order to pay back debts that would leave them even more out of pocket.
So if you haven't already got one in place, implement a loan policy today and make sure your employees understand the application process you're implementing.
It's one way to soften the financial blow of the ongoing bus strike.