Acknowledgement of Debt by an employee

ACKNOWLEDGEMENT OF DEBT BY AN EMPLOYEE

Summary

This Acknowledgement of Debt may be considered where a debt is owed by an employee to the employer. An Acknowledgement of Debt comprises a confirmation of the debt that is due, and specifies how the debt is to be repaid.  Warning: this transaction may be subject to the National Credit Act 34 of 2005, in which event an expert’s advice should be sought.

More information

Why do I need an Acknowledgement of Debt?

An Acknowledgement of Debt generally confirms that a debt is due, and comprises an undertaking by the employee to pay the debt in instalments on agreed dates. The Acknowledgement of Debt strives to authorise the employer to deduct the instalments from the employee’s salary on a monthly basis.

What type of business should use an Acknowledgement of Debt?

If your business has employees that owe money, this Acknowledgement of Debt may be considered to confirm the amount owed and the payment authorisation.

What does the Acknowledgement of Debt say?

The Acknowledgement consists of:

• The name of the Debtor
• The amount of the debt
• The repayment details
• Authorisation to deduct from the salary
• General  

• The agreement can be printed onto one A4 page.

• Read the document to ensure that it suits your requirements. Make changes as required.
• Complete the relevant details, and get the Debtor to sign.

• Employee Payment Undertaking
• Employee AOD
• Staff Payment Undertaking
• Staff AOD
• Staff Acknowledgement of Debt

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