The Cession of the Fifth is a form of financing widely used by employees and retirees. This is because it has a very convenient return method, through direct deduction from the pay slip, does not require guarantors, can be used for any type of expense and is at a fixed rate and installment.

Among the many questions that often arise regarding this type of loan is: Can I ask for the advance of my severance pay if I have a salary assignment in progress? Let’s try together to clarify.

What is the TFR?

TFR stands for Severance Pay, that is to say part of the salary of employees who comes set aside to then be returned at the end of the employment relationship, both in the event of dismissal and bankruptcy of the company and, of course, at the time of retirement.

An employee can choose how to manage his severance pay, i.e. whether to let the company or INPS manage it: in the first case, the company itself will administer a pension fund.

The severance pay is used as a guarantee in the event of a request for a fifth assignment but there is a case in which it is possible to request an advance even with the loan in progress.

TFR guarantee for the Assignment of the Fifth

A worker who needs additional liquidity and decides to request a Fifth Assignment he knows his Severance indemnity will be bound until the payment of the last installment of financing. The severance pay therefore acts as a guarantee on which the credit institution can rely in the event of non-payment.

There is a case, however, in which the credit institution cannot count on the severance pay and that is in the event of the death of the customer. In this case, in fact, the insurance intervenes, stipulated by law at the signing of the transfer contract.

The foregoing leads us to believe that it is impossible to request an advance on the severance pay with a salary assignment in progress. Instead, there is a case where this is possible.

Advance Severance Pay With Assignment Of The Fifth In Progress: When Can I Request It?

As previously stated, the TFR performs the function of guarantee for the Assignment of the Fifth and therefore it seems impossible to think of requesting an advance if you have this type of loan in progress.

However, there is a condition in which this is possible. Indeed, in the event that the portion of the severance pay set aside exceed the total amount of the debt, the worker can request it from the company. It goes without saying that the worker will only be able to access the amount exceeding the loan.

The worker employee can apply for their severance pay only once and for a maximum of 70% of the amount accrued; moreover, they must have accumulated a length of service of at least 8 years within the same company. What is no less important is that the worker must justify his / her request for an advance on the severance pay by presenting documentation.

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