FSD 26 - Security deposit advance
Introduction
The employer recognizes that to acquire housing, an employee may be required to pay the lessor a sum of money as a security deposit, or to pay an agency or a firm a sum of money as a security deposit in order to rent essential household furniture and equipment. In such cases, the employer undertakes to provide financial assistance in the form of an advance.
FSD 25 - Shelter, should be referred to where no security deposit advance has been made but the lessor claims for alleged loss or damage.
Directive 26
26.01 Where an employee is required to pay a lessor a sum of money as a security deposit to acquire permanent accommodation, and/or pay an agency or firm a sum of money as a security deposit in order to rent essential household furniture and equipment, the deputy head may authorize payment of an advance not exceeding the following:
(a) six months' actual rent, as determined in FSD 25.03, where an employee is required to pay a lessor a sum of money as a security deposit in order to rent permanent accommodation; and/or
(b) six months' furniture rental, where an employee is required to pay an agency or a firm a sum of money as a security deposit in order to rent essential household furniture and equipment.
Instruction
Provisions related to the financing of advances made under Section 26.01 are contained in the Appendix to FSD 10 - Posting loan.
26.02 Except where the provisions of Sections 26.03, 26.04 or 26.05 apply, the advance made under Section 26.01 shall be:
(a) repaid by the employee upon refund by the lessor/firm/agency, together with accrued interest, if any, in accordance with the provisions of the lease agreement, or
(b) recovered from an employee's salary two months after the date of the expiration of the lease,
whichever is earlier.
26.03 Where a lessor/firm/agency withholds all or part of a security deposit in compensation for alleged loss, damage, or other liability attributed to the employee, recovery of that part of the security deposit advance which, in the opinion of the deputy head, is not properly attributable to the employee may be waived, up to the following limits:
(a) one month's actual rent, as determined in FSD 25.03, where the security deposit was paid to a lessor in order to acquire permanent accommodation, and/or
(b) one month's furniture rental, where the security deposit was paid to a firm or agency in order to rent essential household furniture and equipment.
26.04 Where a security deposit is withheld in an amount which exceeds the limits prescribed in Section 26.03, in compensation for alleged damage, loss or other liability attributed to the employee, the deputy head may:
(a) authorize payment of legal and related expenses incurred in securing independent competent assistance to determine employee liability, provided such expenses do not exceed the amount of the security deposit withheld, or
(b) waive recovery, up to the cost of procuring the services of competent assistance to determine employee liability, of that part of the withheld security deposit advance which in the deputy head's opinion is not properly attributable to the employee.
26.05 Where the deputy head has authorized payment of expenses pursuant to Section 26.04(a), and is satisfied that, on the basis of the report from independent sources:
(a) the claims of the lessor/firm/agency are unreasonable, and
(b) initiation of legal proceedings against the lessor/firm/agency would prejudice departmental objectives or involve prohibitive costs,
recovery of that part of the security deposit advance which in the opinion of the deputy head is not properly attributable to the employee may be waived.
Instruction
Before waiving recovery under Section 26.04(b) or Section 26.05, the senior departmental officer at the post shall submit a report to the deputy head providing the circumstances of the dispute, the report of an independent appraiser, if applicable, and recommendations for the disposition of the dispute.
Guidelines
1. It is the employee's responsibility to ensure that items of furniture and their condition, as listed in the inventory or contract, are accurate, in order to avoid misunderstanding. Where required, translation facilities at the Post may be used to assist the employee in understanding the terms used to refer to particular items of furniture.
2. Settlement of a security deposit advance shall be in the same currency as the advance was issued unless the employee has departed the post prior to final settlement, in which case any amounts owed by the employee shall be repaid in Canadian currency using the exchange rate applicable in the month the employee departed the post.
Forms
TBS 330-188 (82/5) FSD 26
Security Deposit Advance (FSD 26)