Loan Repayment Agreement Employee Template for Ireland

The Loan Repayment Agreement Employee is a crucial document used when an employer provides financial assistance to an employee through a formal loan arrangement. This agreement, governed by Irish law, establishes the legal framework for the loan, including specific terms for repayment through salary deductions, interest calculations, and default provisions. It ensures compliance with Irish employment law, particularly the Payment of Wages Act 1991, Consumer Credit Act 1995, and data protection regulations. The document is essential for protecting both employer and employee interests, providing clarity on loan terms, and establishing a legally compliant mechanism for repayment through payroll deductions. It's particularly relevant when companies offer employee loans as part of their benefits package or to assist employees with specific financial needs.

1. Parties: Identifies the employer (lender) and employee (borrower) with full legal names and addresses

2. Background: Explains the context of the loan agreement, including the employment relationship and purpose of the loan

3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty

4. Loan Amount and Purpose: Specifies the exact amount being lent and its intended use

5. Interest Rate: Details the applicable interest rate, whether fixed or variable, and calculation method

6. Repayment Terms: Specifies payment amounts, frequency, and method (typically salary deduction)

7. Salary Deduction Authorization: Employee's formal consent to wage deductions in compliance with Payment of Wages Act 1991

8. Early Repayment: Terms and conditions for early loan repayment, including any applicable fees or benefits

9. Default Provisions: Consequences of missing payments or leaving employment before full repayment

10. Data Protection: Provisions for handling personal and financial information in compliance with GDPR

11. Governing Law: Confirms Irish law governs the agreement

12. Execution: Signature blocks and execution requirements