Can an AZ lend money to employees? The answer is yes: the Works Councils, in addition to representing the staff of a company, also have a mission to help employees, which is not just discount tickets. An employee in difficulty may apply to his works council for a loan, under certain conditions.

The AZ can help employees under certain conditions.

The EC can help employees under certain conditions.

MarKet went to meet a chartered accountant, who tells us a little about this opportunity given to employees, and his professional experience on this subject.

Example of a loan almost requalified as a donation

We had been consulted during a loan of more than € 5,000 granted to a member of the works council. No collegiate decision had been taken, only the secretary of the AZ was aware. Following elections, new members became interested in the accounts, and realized that the loan was still not repaid. They had then informed the management. The latter did not want to get too wet, especially because two unions were opposed on the subject.

She let them choose the audit firm and asked that a report be drawn up on the accounts of the works council. The secretary had wanted to help an employee who seemed in difficulty, but he was rolled in the flour, since the employee was no longer part of the workforce of the company for a few months and the secretary then felt compelled, before disclosure of the facts, to repay part of the sums.

We had perceived all the goodwill of the secretary and, at the end of our audit, all the sums were repaid, certainly in large part by the secretary of the works council.

Needless to say, this situation has outlawed the union for the next election. As of this exercise, the works council decided to use a chartered accountant every year to validate the accounts of the works council. During this audit, we then proposed a good ten ways to improve the way accounting is done. All our recommendations have been put in place in two or three years.

This example shows us that, often, the lack of rigor in accounting behavior is more related to technical misunderstandings than the will to defraud.

This loan we just talked about almost turned into a gift!

MarKet’s review


The AZ may under certain conditions grant loans to employees of the company.

The works council can therefore grant loans and donations (relief) to employees of the company. However, it will be necessary to be particularly vigilant to the formalism (one file per employee, detail of the demand, rate of interest in case of loans, modalities of repayment, reasons of the difficulties in the event of donation) in order to avoid the questioning by administration, but also the responsibility of the members of the works council.


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