What Happens to Payroll Deduction Discounts When There Is a Change of Employer or Paying Entity?

A payroll deduction is a document prepared by the employee, contractor, or pensioner by virtue of which they authorize their employer or paying entity to deduct, with the periodicity mentioned therein, from their salary or pension payment a specific amount in favor of the payroll deduction operating entity through which they acquired a good, service, or were granted a loan of money, the Superintendence of Companies clarified.
In accordance with the provisions of Article 7 of Law 1527 of 2021, upon a change of employer or paying entity, the beneficiary must inform the payroll deduction operator of such situation. However, the mere authorization of deduction signed by the beneficiary allows the operating entity to request any employer or paying entity to remit the resources derived from the obligations incurred under this modality.
On the other hand, the entity specified that payroll deduction documents must not contain blank spaces since, precisely, one of the conditions that the aforementioned law requires regarding payroll deductions is that it translates into an express authorization, or in other words, specific, determined, and clear.
According to Article 6, the employer or paying entity must deduct from their employee, contractor, or pensioner the amounts owed by them to the payroll deduction operator, with their consent, but subject to the parameters established by both parties and that condition the granting of the credit, parameters that are specified in the payroll deduction or its attached document. Therefore, the authorization of deduction must be clear to the payer regarding the terms of granting the credit agreed between the beneficiary and the operating entity, since otherwise the employer or paying entity could not know the exact amounts to deduct, their periodicity, and the term of the loan.