Being the policy is as stated and the employee knows it you are not breaking any laws. Rules are rules, bending one leads to another. Stick by your guns and your established policies!Note: An employee yelling would get one warning to calm down and an explanation of the rules. Further attempts to intimidate or make threats would be cause for immediate dismissal.
If the policy is written and stated in your employee handbook and he has received a copy of this handbook that was gone over with him during orientation, you are not violating any laws. However it is important to maintain good employee moral and if he is a first time offender it is very likely and possible to pay him out of petty cash (if you are able) and remind him of the policy and the rule that this issue can never come up again.
The problem s not with you. Unfortunately, there are people who live paycheck to paycheck. For him, this may have been a crisis situation. However, if it is really that important to someone to get their money, then they need to take responsibility on their end. To be honest at my company, if there is a payroll problem it is made up in the next paycheck (which are issued every two weeks). We don t cut a separate check, and we don t pay interest on what is owed. Just a suggestion, perhaps it is time to send out a formal statement (reminder) on what the policy is, and the consequences of not following through on the employee s side.