Workride delivers the best benefit for employees while safeguarding employers and directors from risks. By externalizing Health & Safety, Consumer Guarantees Act (CGA), and CCCFA obligations to Workride, we ensure full compliance and minimise exposure, letting employers confidently offer this benefit without worry.
Employees gain all the protections of the CGA through Workride and can easily insure their ride under standard contents policies due to their "legal responsibility" of their chosen equipment during Workride’s 12-month lease period. This structure gives employees their full rights and peace of mind while keeping employers safe and protected. It’s a win-win for everyone.
Background on how other approaches fall short, but not limited to:
Employer-Owned Equipment:
Tax Complications: Employer ownership classifies the ride as CAPEX instead of OPEX, leading to mismatched depreciation rates and unrecoverable tax liabilities at the end of 12 months.
Health & Safety Risks: Employer-owned equipment introduces insurmountable safety risks, as the business becomes liable for all incidents involving the equipment.
CGA Issues: Employees lose key protections under the Consumer Guarantees Act, as the employer is treated as a business supplier, creating dissatisfaction and potential legal exposure.
Employee Ownership from Day One:
Loss of Leverage: Immediate ownership transfers all leverage to the employee, leaving the employer unable to recover costs if recovery payments are missed.
Legal Liabilities: Employers face exposure to CGA and Fair Trading Act claims, as they become the "supplier" of the equipment, responsible for warranties and potential disputes.
Insurance Limitations: Employers would need to update their liability insurance policies to account for risks associated with employee ownership. However, these updates can come with increased premiums and may still leave employers exposed to gaps in coverage.
Regulatory Risks: In cases of payment default, salary sacrifice arrangements could fall under CCCFA rules through cost recovery. Employers could then need to be registered as financial service providers, comply with disclosure requirements, and bear regulatory risks.
Why Workride is the Solution:
Workride's lease structure eliminates these risks, ensuring employers recoup full costs before ownership is transferred. By externalizing all legal, safety, and compliance obligations, Workride provides a seamless, and safe way to empower employees with this valuable benefit. No other option offers this level of protection and simplicity for employers