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Understanding security deposits and refunds

When is the Security Deposit collected?

The Security Deposit is typically collected at the beginning of the employment contract or when a new employee is onboarded on Skuad. Skuad issues a security deposit invoice for each remote hire. This invoice serves as an official record and aids in tracking the deposits for multiple employees, ensuring financial transparency and accountability. The invoice needs to be paid upon receipt, as per the terms outlined. The exact timing and conditions for collecting the deposit, including the invoice payment, are detailed in the contractual agreement between Skuad and the employer.

Security deposit refunds

The Security Deposit is subject to refund upon the termination of the employment contract or the completion of the stipulated period, provided all contractual obligations are met. 

Security deposit refund process

Step 1: Contract termination or completion
Once the employment contract ends or the agreed period is completed, the security deposit becomes eligible for review and refund.

Step 2: Review of accounts
Skuad reviews the account to ensure that discrepancies are resolved and that there are no outstanding financial obligations.

Step 3: Initiating the refund
The refund process is initiated if the security deposit is clear of any deductions or claims.

Step 4: Refund method
Skuad primarily issues credit notes for refunds, which can be applied to future transactions as the employer prefers. In scenarios involving client final and full (FnF) settlements, these credit notes are settled through a bank transfer – Skuad's Finance team will request the necessary bank details to process the transfer, ensuring a seamless and efficient refund process.

Skuad ensures a clear and fair process for handling Security Deposits, emphasizing transparency and trust in the employer-employee relationship. Employers can reach out to the Skuad support team for detailed information on their specific SD terms, refund processes, and any related inquiries.

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