The fee advancement clause contained in a compensation contract provides that the right of the free fund is entitled to a down payment of compensation to cover legal costs. 1.3. Unsecured advances and interest. These advances are, in all cases, unsecured and interest-free and will be made regardless of the free manager`s ability to repay advances. As this provides employers with a real-time expense rating, the advantage for them is that with just a few clicks, they can take the necessary precautions in the event of suspicious activity. The employer sets the limit on the card and can monitor payments in real time, which no longer means nasty surprises. For example, long-term travel abroad can result in costs that your employees may not always be able to cover out of pocket. A whole week (or more) with meals and trips may be far too much for some team members. Issuing an advance is a real challenge for businesses. You need to be able to give employees a way to pay for things, but giving the money in advance can seem risky. [Learn more about why employees hate expense notes.] Nevertheless, the business card remains a “classic” way in which companies pay expenses. Most companies use them and they serve much of their purpose. Employees often pay for these expenses with their own money.

But if the amounts are high and recurrent, progress can be the solution you need. The other available solution is a single notice. In this case, the advance is paid directly into the employee`s personal bank account, depending on the amount he should have. A recurring advance means that a given budget is set in advance and allocated monthly to employees to cover their expenses. In the interest of cash flow as well as in the employee`s budget. You must make an accurate estimate of the amount required each month with the employee. This is an alternative to two other common practices: common corporate credit cards and employee expense notes. These two practices are not always an option for any business – you may not have enough credit cards to distribute, for example. Also known as fee advances, prepaid expenses are when the company gives money to an employee in advance to pay for a known cost.

Instead of asking this employee to pay out of pocket, give them the money before they need it. This amount of payment is obviously unfair to the employee, and an advance is probably the best. VS Recurring One-Time Advances You can also avoid asking employees to pay out of your pocket, even if they are refunded later. In fact, it is unfair to expect team members to spend their own money on business expenses, especially if the amounts become large enough. The employee submits his expense notes and payment documents to request a refund. If the costs exceed the estimated value, the difference is refunded. We should also quickly recognize another relatively common form in advance: cash or wage advances. These are not the same as fee advances. However, this option represents a significant cost for a start-up or SME, as the card charges a minimum annual fee of EUR 100. And the processing of expenses is also costly in terms of the time required for the employee and the accounting team.

1.2. Effort calculation. This statement or statement must properly prove the costs incurred by the deeder and must include or be preceded by an obligation to or for compensation of Indemnitee, in order to reimburse all expenses intended for him if, in the end, it is established that it is not justified to be compensated by these expenses.