What is a reserve payment?

A reserve payment is sometimes required before a Customer can onboard a new employee. A reserve payment is used as a form of financial security for your Remote employees in the event of unpaid payroll costs after an employee is offboarded. Our compliance team evaluates all new and current customers on an ongoing basis to determine whether reserves are required.

If you are asked to pay a reserve for an employee, it will be an estimated one-month equivalent of the new employee’s gross salary and associated mandatory employer costs.

The reserve is refunded if you do not proceed with the hiring of the employee, or after an employee is offboarded. In the case of offboarding, any invoiced and unpaid amounts owed to Remote will be deducted from the reserve refund.

See also: All about Reserve Payments