Dear Reader,
In my years of heading a security and housekeeping agency, one of the common instances found is the client giving a loan to their security guard provided by the agency, and when they are not able to recover the amount from the guard, they hold the security company liable. I will try to give my perspective on this, in this letter.

Many times, people get sympathetic with the security guards and a bond gets created between the client, its employees, and the security guard.

Typically, the loan is given to the guard by the following 2 sets of people.

1. Employee: When an employee gives a loan to the security guard without the knowledge of the owner, the employee may want to get some extra benefit from this relationship which may not be in the favour of the company. An employee should never be allowed to give any sort of loan to the guard and in case if it is found that such an activity has happened, then strict action needs to be taken against the employee and the guard.
2. Owner: The owner of the company may give a loan to the security guard; however, the owner should not make the security company a guarantor. The owner will be responsible if in case the guard absconds or does not pay the loan back to him. Besides we feel the guards should be changed periodically lest he takes advantage of this relationship.

I hope it helps and would urge all of you not to allow your employees to get involved in giving any kind of such favours including giving loans.

Regards,

Ravi Kapur