In recognition of worker contribution to organizational well being, salaries are paid.
Payday for workers is one to anticipate in every organization no matter the scale or size. Nobody gets paid for work that is not done instead; payment is made in proportion to the contribution made to organizational value.
The determination of how much a worker earns depends on a variety of factors such as;
1) the agreed pay rate on offer of employment
2) the rate per task for piece-rate workers
3) the actual number of hours earned
4) the prevailing wage rate in an industry
5) worker compliance with terms of employment
6) the worker's specialty
When a worker gets employed in an organization, he becomes entitled to the stated remuneration and benefits for such position. Organizations recognize that workers may be faced with challenges that their immediate finances might be unable to cater for or adequately support. In this regard, corporate concerns make payday loans to their workers against their expected earnings for the month. The worker in turn, will make remittance of the loan on payday from the emoluments due him.
There are different modes of relieving the payday loan. Some methods include deducting the agreed amount from the worker's emolument and paying the balance due to him. Some deductions can be done on an installment basis thereby reducing the payday loan systematically. What determines whether the payday loans get an installment basis of payment of a one-off repayment is the terms agreed upon between the lender and the worker.
Other methods include the outright payment of what is due to the worker who in turn remits the agreed portion of the loan as he picks his paycheck. The method used is not actually of much significance except that the lender is interested in receiving the remittances as they fall due.
Sources of payday loans
1) the employer
2) credit bureaus
3) cooperative societies
4) banks
Payday loans from employers will normally not attract any rate of interest. Most workers cooperative will charge a nominal rate for their payday advances. The obvious advantage for workers is the minimal documentation required by the employer and cooperative societies, where the worker has a sense of belonging.
Payday loans are acceptable alternatives for the worker who might be caught in a financial constraint for different reasons. The reason for a payday loan might be a health challenge, growing inadequacy of worker remuneration or other unplanned emergency.
This may require more financial commitment than the available resources can support. The grant of payday loans should be streamlined in order to avoid abuse by the worker. Continuous demand for a payday loan should be declined for returning applicants to avoid irresponsible accumulation and default in payment terms.
The aid spurned by this welfare initiative can go a long way to calm worker apprehension when faced with trying financial situation. Sometimes, the desperation from financial inadequacy can throw many workers off balance and impose tremendous pressures on them. Worker instability can result in chaos at workstations anywhere. An absent minded person will be prone to more errors at work and workplace accidents are recurrent in chaotic circumstances.
