PLEASE NOTE: Information in this article is correct at the time of publication, please contact DFA Law for current advice on older articles.
By Michael Nadin, Associate Solicitor
Many employers now offer flexible benefits packages in order to attract and retain the most talented employees, however you may not yet have heard the concept of flexible income.
It is our prediction that this concept will become increasingly well known in the coming years.
In a flexible income scheme, employees are entitled to withdraw a set percentage of their earned income prior to the set monthly pay day. This is aimed at helping employees deal with unexpected expenses (such as car or home repairs) without having to rely on pay-day loan providers.
The provider will cover the payments to the employee (until pay day) meaning that the employer’s cash-flow is unaffected. In return the provider charges a nominal fixed withdrawal fee from the employee and a monthly subscription fee from the employer.
The high interest rates charged by some pay-day loan providers can lead to financial difficulties, which in turn might result in mental health problems.
Flexible income schemes are likely to prove popular with both employers and employees as they have the potential to boost morale, productivity and attendance rates in the workplace by promoting better financial and mental health.
In times where workplace flexibility is something that more and more businesses are needing to offer to their staff, this could be another option to attract or retain the best staff.
If you would like to know more about any HR or employment law issues, including available options for offering flexible benefits to staff, please contact Associate Solicitor Michael Nadin on 01604 609560 or by e-mail: firstname.lastname@example.org