Auto Dealer Monthly, Q4 2020

ILLUSTRATION GETTYIMAGES COM SDI PRODUCTIONS D Departing employees can end up owing your dealership money for a variety of reasons Overpayments by the dealership outstanding loans or pay advances unresolved invoices on dealership services provided to the employee advances on vacations or other paid leaves cash shortages damaged property or equipment failure to return property or clothing and training expenses are just a few of the many reasons why you might find your dealership owed money by a worker The likelihood of your being able to recover money for these purposes depends in large part on your dealer By Matthew Simpson Many scenarios exist where employees can leave an employer owing the dealership money The likelihood of your being able to recover money for these purposes depends in large part on a handful of proactive processes and procedures C o m p l i a n c e 26 auto dealer today Q4 2020 ships diligence in maintaining the right policies using the correct implementing documents compliance with applicable laws and constant improvement in the dealerships processes Although each situation is different here are eight general tips for dealers who find themselves in situations where a departing employee owes them money Anticipate and Plan for These Situations Anticipating and planning in advance for the departure of employees owing money is critical If you wait until the employee has left to collect your dealership has far fewer options for collecting the money Maintain the Right Policies Having the right policies in place is a critical step in establishing options for recovering Among others you should consider adopting policies addressing overpayments deductions from pay dealership services loans pay advances vacation or paid leave advances training payments and return of property These policies can articulate the circumstances terms and conditions under which the dealership will make these payments FROM DEPARTING EMPLOYEES FOR RECOVERING DEBT TIPS