How do deal with employees who keep asking advance payments for made up reasons? [closed]

Question

I manage two employees who work under contract. They report everything to me including work progress and payments. The problem is they repeatedly bring up personal issues like sick family member, no money for food, and other silly lies, to get advance payments. I know these reasons are lies because this happens more than 3 times in a month.

They are casual workers who are not easy to replace with professional people. They do a very good job, which they use to justify their entitlement. I could be wrong, but I don't believe I should be discussing with top management about changing payment policy because someone's son is in a coma.

I have learnt to deal with this, but they are now taking advantage of other managers and top level management. I have instructed the other managers to direct them to me and not listen to them at all. This hasn't been effective as one of the top level managers told me about how she gave them her own money because of their family issues. She kept insisting that I should pay them even if their contract states that payments can be made in 30 days. The payments take time to be approved and released, which causes the delay.

I plan to cancel their contract, but I will first have to get good replacements since I am tight on schedule.

How can I deal with such employees?

Answer 1

You would ideally start by telling them that asking advance money has been happening too frequently, and won't be entertained further. I would imagine you have already tried that in some way and that hasn't worked.

Taking advantage of you while your hands are trapped underneath a rock by making up silly lies is not only unprofessional but also unethical. You can either tolerate their shenanigans until you find a suitable replacement, or decide to fire them even if your business takes a hit.

A middle ground, which could also be an interim solution, might be to ask them why they keep making up these excuses so frequently, and perhaps whether they feel underpaid. Changing their payment frequency (for example, from monthly to weekly), and an official company policy on offering loans to employees would also help you push back on these emergency money requests.

Regarding other managers giving them their own money, it is probably best for you to stay out of it. What other people do with their money is not your problem.

Answer 2

Nothing you said in your question really gives me the impression they’re lying. Frequency alone isn’t evidence of lying, and none of the reasons you say they give for advance payments suggest that frequent requests are a lie. If you can’t afford food one month, you probably won’t have a ton of extra money for food the next month. If you have a family member that’s sick monthly, that could be due to a deficiency in their immune system, or an undiagnosed intolerance to gluten, or that they just can’t afford healthy food, or one of a million other things.

Everything in your question makes it sound like you’re not paying them a livable wage. You should probably start with a pay increase (and it should probably be a pretty big pay increase, especially if they’re not easy to replace) and see if they stop asking a few months after that.

Answer 3

Do you have a contract? Good. Does the contract instruct when/how they get paid? Good. Did they sign the contract (whether they read it or not is irrelevant, just that they signed it)? Good. Next time they ask for an advance payment, the word you should use is "no". They signed the contract, it says how they will be paid and when, and if that's the rule then that's the rule; if they don't want to follow the rule, then they can find employment elsewhere.

You are not responsible for them not budgeting their money correctly so they don't have money for food at the end of a pay period, that's on them, not on you. Next time they make a request of you like this, ask them for proof. Like, if their son is in the hospital, ask for the medical records or a note from the hospital or doctor.

Answer 4

They are casual workers who are not easy to replace with professional people. They do a very good job, which they use to justify their entitlement. I could be wrong, but I don't believe I should be discussing with top management about changing payment policy because someone's son is in a coma.

The way you put this makes you sound like a very rotten person. No offense meant. They're doing a great job, and it sounds like they are in a bad situation. Nothing they're saying or doing suggest malicious intentions and the fact that they are asking for advancement for serious reasons don't sound like a lie. The only reason you dislike this is because it causes you to do more paperwork.

I plan to cancel their contract, but I will first have to get good replacements since I am tight on schedule.

The fact that you want to fire these people solely on the grounds that they are asking for advanced payment due to unsubstantiated "obvious lies" really puts you in a bad light. What you should really be doing is asking them what sort of payment schedule they expect, and explain that making seemingly random advancements - 3 times a month - is too frequent as it requires a lot of paperwork. Imagine for a second you fired this person, and then later finding out a family member died when that "obvious lie" they told is really true.

It would also depend on the amount. If they want say $50 bucks because their kids need a brain surgery, then yeah that sounds a little off. But if they say they need $200 to fulfill a perscription, that doesn't sound off to me.