Workride Max Early Termination Process (+ ACC, Parental & Unpaid Leave)
Note: This is provided as an example and is the default procedure that Workride operates. Employers are advised to seek independent legal advice to ensure adaptability to their specific needs, contracts, and internal policies.
Through offering Workride, it is possible that you may encounter a rare case where an employee has to leave employment or enters unpaid leave, parental leave, or the ACC benefit during the salary sacrifice period.
Reach out to Workride for support if you have any questions during this process. Our team is on call to assist you.
Reducing the risk up front
Early terminations are rare, but there are a few strategies organisations can use to manage the risk proactively: here are some strategies other organizations use:
- Eligibility period: offer the program to employees who've been with you 6 to 12 months, so there's a proven working relationship.
- Spending guidance: cap the ride cost at a percentage of the employee's annual income (e.g. 8 to 12%), to improve the likelihood that their final net pay could cover any remaining balance in the event of early departure.
- Legal protection: the program's legal framework is built to protect you and ensure outstanding costs can be recovered, which keeps risk low and expectations clear for both sides.
Early Termination Process
Workride provides the following as a default process to follow in the event of early termination. This process enforces the employee to settle the outstanding salary sacrifice through their final net pay, or by making a direct payment. This is in line with the contractual obligations signed by the employee.
Standard Resolution: Employee settles outstanding gross salary sacrifice
- Notify Workride that the employee is leaving employment or has had their employment terminated.
- Apply your early termination procedure. Under the early termination clause in the salary sacrifice agreement, the termination fee equals the outstanding gross salary sacrifice. To recover it:
- The employee can settle the outstanding amount from their final net pay or leave balance. You must receive confirmation from the employee that they accept the planned deduction.
- In some cases, the employee may also need to make a direct payment from their personal funds if their final pay is not sufficient.
- Confirm to Workride that the employee has met your internal requirements. We then release their 'Next Steps' ownership options.
- The employee accepts their 'Next Steps' options directly with Workride.
Fallback Path: Employer opts to reassign or re-purpose the ride benefit.
This only applies if an employee refuses to settle the outstanding salary sacrifice.
- Same first steps as the Standard Resolution: notify Workride and attempt to resolve it with the employee.
- Decide how to handle the shortfall. You can either write the outstanding amount off, or ask Workride for support to recover the value of the equipment.
- If you'd like our support, get in touch. At your request, we will implement our 3-step resolution process.
Workride's 3-Step Resolution Process
Throughout the 12-month lease, Workride retains legal ownership of the equipment. The lease mechanism protects you from financial loss if an employee leaves without settling.
If the standard resolution isn't possible and an employee doesn't meet their contractual obligations, at your request, we step in with a three-step resolution:
- Educate and engage. We contact the employee directly to set out their obligations, what they owe, and exactly what happens next, whether that's gifting or recovery.
- Reassign or repurpose the equipment. If the balance still isn't settled, then with your confirmation we can recover the equipment. From there it can be reassigned to a new employee who takes over the balance, or repurposed within your organisation, for example as a pool bike or e-bike for general use
- Reimburse and recover. If neither reassigning nor repurposing is feasible, we may sell the recovered equipment and use the proceeds to reimburse your organisation in full.
If an employee takes leave: unpaid, parental or ACC
If an employee pauses work for an extended period, you'll need to agree with them how to handle the salary sacrifice gap while they are away. This usually depends on how long the period will be:
Scenario | Suggested Outcome |
Employee enters short unpaid leave, parental leave, or ACC benefit | Employer and employee discuss the situation. Employer is willing to pause salary sacrifice due to proposed period away from work being short. Salary sacrifice is paused until employee returns to work. |
Employee enters long unpaid leave period, parental leave or ACC benefit (4+ months) | Employer and employee discuss the situation. Employer is not willing to pause salary sacrifice due to proposed period away from work being too long. Employee enters early termination process and settles outstanding salary sacrifice commitments. |
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