How to Recover an Outstanding Season Ticket Loan from a Former Employee

If an employee leaves your company with an unpaid season ticket loan balance, it’s essential to recover the amount efficiently while adhering to UK employment law. Follow this guide to ensure a smooth loan recovery process and minimise financial losses.

Deduct the Loan from the Final Payslip

If the employee leaves suddenly, check if you can recover the outstanding loan by deducting it from their final payment. This may include:

• Final salary payment

• Accrued holiday pay

Ensure the deduction is in line with the season ticket loan agreement and complies with UK employment regulations. If you’re unsure about the legality of the deduction, contact the Givver team. We are happy to provide support and guidance to help you stay compliant.

If the final payment doesn’t cover the full loan balance, you’ll need to arrange alternative repayment methods.

Communicate Directly with the Former Employee

When full deduction isn’t possible, promptly contact the former employee with a clear repayment request. Your message should include:

• Total amount owed

• Detailed breakdown of the outstanding balance

• Bank details for repayment

• Repayment options, such as instalments

• Deadline for repayment

Document all communications and keep records to avoid disputes. Maintaining professionalism can increase the likelihood of successful repayment.

Escalate to Legal Action if Necessary

If the employee does not respond or refuses to repay, you may need to escalate the matter legally. In the UK, you can file a small claim through the government’s online service to recover the debt.

➡️ Learn more about making a court claim: Making a Court Claim on GOV.UK

Frequently Asked Questions (FAQs)

Can I Deduct the Loan Balance Without the Employee’s Consent?

You can deduct the loan from the final payslip if the employee agreed to this in the season ticket loan agreement. Ensure compliance with UK employment law. If you’re unsure, the Givver team can provide compliance support.

What if the Final Payment Doesn’t Cover the Loan?

If the final pay isn’t enough, offer repayment options such as instalments or a lump-sum plan.

How Long Should I Wait Before Taking Legal Action?

Give the employee a reasonable deadline (14-30 days) to repay. If they don’t respond, proceed with a small claim.

What if the Former Employee Disputes the Amount Owed?

Refer to the original loan agreement and your communication records. Proper documentation supports your case if legal action is needed.

Can I Charge Interest on the Loan Balance?

You can only charge interest if this was specified in the original season ticket loan agreement.