IVA - Employer Deduction

[monkeygirlindebt]

Hi All,

 

I'm not sure if this is the right place, but I hoped possibly someone could help, I've tried various solictors today, and this appears a very hard question. I have a employee in work who put in place a iVA last year with his creditors, it had nothing to do with the company, and was of no issue, but unfortunately since then through his expenses and the fact he has been withdrawing cash from his Company credit card, he has now built up a debt owing to the company of £1.6k, he has commited gross misconduct, and the likely outcome will be termination, but although our employment contract says all outsanding money will deducted from final pay, he tells us that we can't because of his IVA, and that we have to agree to his payment plan, does anyone know if this correct?

[palomino]

In that his contract of employment predates his IVA then I believe it would take precedence. Assuming of course there was no alteration to the employment contract at the time of the IVA.

 

From what you describe he is trying to have his debt to the company included in the IVA. While this might be correct for that part of it incurred prior to the IVA it certainly isn't for the part incurred afterwards.

I would make the deductions from his final pay and then let him argue the toss. He is almost certainly not going to get very far.

 

You do not have to agree to anything much less his payment plan. However it might be the best way to go in your circumstances - that's for you to judge.

 

I hope you have reclaimed his company credit card!