What happens if I leave employment?
If you leave employment or are made redundant during the Hire Period any outstanding salary sacrifice repayments will be taken from your final salary, from NET rather than GROSS pay i.e. without any further tax exemptions.
This is because you will no longer be riding your bike to your original workplace meaning you are no longer eligible for the tax saving.
If you are on a 12-month scheme and have had 4 Salary Sacrifice repayments taken from gross salary prior to leaving employment, the remaining 8 should be taken from your final NET salary. This is what is described in the Hire Agreement as a 'Termination Fee'.
If you have benefited from tax and national insurance savings you are still likely to be liable for your ownership (End of Hire) payment. However, because you should never pay more than the RRP for the bike we may be able to waive the ownership payment:
- If fewer than two month's worth of salary deductions have been taken for certificates under the value of £500; or,
- if fewer than three months of salary deductions have been taken for certificates equal to, or over the value of, £500 have been taken before you leave employment.
Please note, it is not possible to transfer the agreement from one employer to another.