We also wanted to mention that an employer may ask you, as an employee, to give a warranty regarding the payment of outstanding loans to the company, if you owe the company money.

The warranty may be worded as follows:-

“ You warrant that there are no sums or loans outstanding from you to the Company or any other Group Company and there is no fact or circumstance under which any payment is due or could become due from the Company or any other Group Company to you other than under the terms of this Agreement.”

You would be required to give this warranty once the loans are paid off. Under no circumstances should you give this warranty if the loans are still outstanding.