Season Ticket Loan - Who gets the refund?

LostAndAshamed

I got a season ticket loan from my employer in March this year.

My final day working for them is next Monday, so I've just had notification of my final pay - and it's nullified by the loan.

The ticket cost £4200. It has 6.5 months left to run, so it can be refunded. However, as my company gave me a corporate cheque to pay with, SW Trains will only refund the ticket by way of a corporate cheque back to the company. This process will taken 24 - 28 days.

The company have said that they'll write me a letter saying that when they've got a refund, they'll refund me, or that SW Trains can refund me directly. It would appear SW Trains can't do that.

In previous jobs, I've simply handed the ticket back with a quote from SW Trains saying how much they'll refund when I leave. My current company are saying that the ticket is mine, and therefore they don't want it returned to them.

Is that correct? If they'd given me cash to buy the ticket, I'd get a cash refund and that would be fine. Waiting a month for a cheque that is not made out to the correct person will likely leave me homeless, though...

It'd be better if I could return it today and at least start the 28 day counter, but they'd need to allow me to work elsewhere then, and I can't see that happening.

KiKi

LostAndAshamed wrote: »

Is that correct? If they'd given me cash to buy the ticket, I'd get a cash refund and that would be fine. Waiting a month for a cheque that is not made out to the correct person will likely leave me homeless, though...

It'd be better if I could return it today and at least start the 28 day counter, but they'd need to allow me to work elsewhere then, and I can't see that happening.

I think SWT are right. Your company paid for the ticket, therefore they have to refund the money to the company. What arrangements you have with your company are your concern, not theirs.

IME, most companies issue season ticket loans through paying cash at a payday - which is why you'd then get the cash back. This makes more sense. But your company didn't do that, and now you're finding out the pitfall!

The company paid for the ticket, and presumably have been taking a slice from your salary each payday. Why not simply ask them to pay you your usual salary, take the usual slice, and to wait for the cheque from SWT rather than from your final pay? It simply means they're waiting on SWT. If they're not prepared to do that, get a letter from SWT how much the refund will be, and ask your company to take that into account at your final pay so that they're not waiting for the cheque to come in to pass onto you. Basically - ask your company to work with you on this one, rather than wanting SWT to refund you, because that's not going to happen.

Nebulous2

What does your contract / loan agreement say will happen?

Employers can only deduct from wages in specific circumstances, usually with your agreement.

Undervalued

Nebulous2 wrote: »

Employers can only deduct from wages in specific circumstances, usually with your agreement.

I don't think that applies to the final salary payment when leaving.

In any case, whatever the rights and wrongs, it sounds as though the OP needs to come to some arrangement (if possible) with the company now. Failing that they are going to have to try and get a short term bank loan or overdraft until the refund is squared up.

Lesson for the future is to plan for these situations and not run your finances so tight that you are firefighting. All that leads to is a spiralling debt problem.

Somerset

KiKi wrote: »

Why not simply ask them to pay you your usual salary, take the usual slice, and to wait for the cheque from SWT rather than from your final pay? It simply means they're waiting on SWT. If they're not prepared to do that, get a letter from SWT how much the refund will be, and ask your company to take that into account at your final pay so that they're not waiting for the cheque to come in to pass onto you. Basically - ask your company to work with you on this one, rather than wanting SWT to refund you, because that's not going to happen.

It's not going to happen. When the employee leaves, the company needs to be all square with the employee. Loan advanced deducted from monies owed.


Why would they take on a debtor ? SWT cheque doesn't arrive, someone has to chase it up, make phone calls, fill in more forms etc. It's not their problem.

burnoutbabe

yes, and it could be the employee somehow had already got a refund, got a replacement and the one they handed in wasn't the correct one.

So up to you to get the refund.

Nebulous2

Undervalued wrote: »

I don't think that applies to the final salary payment when leaving.

What you think might not be good enough though.

government website

So the question remains. What does his contract say? Did he sign a loan agreement saying they could deduct it?

stclair

When I had a company season ticket they refunded me the money.

KiKi

Somerset wrote: »

It's not going to happen. When the employee leaves, the company needs to be all square with the employee. Loan advanced deducted from monies owed.

You don't know for certain that they won't do that - unless you know his/her employer, of course. But that's why I suggested s/he asks; it was a helpful suggestion, nothing more.

In every company I've worked for, they would have done that for me, because I had a good relationship with them (in fact, they have, but not for a season ticket). The OP may be in the same situation.