Explain the process of an Employee early termination

Explain the process of an Employee early termination

Employee early termination: Explain the process that an employer follows if an Employees’ employment is terminated prior to the end of lease and salary sacrifice periods. 



Notes
Workride provides the following as a default process to follow in the event of early termination; this approach can be tailored to suit the specific needs of each employer.
Info
If an employee leaves before completing their 12-month lease, they are required to follow the early termination process. This requires through contractual obligations for the employee to settle the outstanding salary sacrifice amount through their final net pay or by making a direct payment. The employer then contacts WorkRide to terminate the lease and gifting offer for the ride equipment. This is all facilitated through our software platform, so very little effort. WorkRide will engage directly with the employee regarding ownership options, including a gifting offer if successfully meets their obligations. WorkRide retains legal ownership of the equipment during the lease period, which is designed to protect the employer from financial loss. Our 3-step resolution if an employee reneges on their contractual obligations includes:
  1. Educate & Engage: WorkRide contacts the employee to outline their obligations, repayment requirements and clear outcomes of what happens next. Eg. Gifting or recovery. 
  2. Reassign or Repurpose the Equipment: If settling of balance is failed to be achieved, upon the employers confirmation WorkRide may recover the equipment. It can then be reassigned to a new employee or repurposed within the organisation by opening this balance up to another staff member to settle to gain ownership of this.
  3. Reimburse & Recover: In cases where reassignment or repurposing isn't feasible, WorkRide may sell the recovered equipment and use it to reimburse the organisation in full. 
IdeaResolution 1: Employee opts to settle outstanding gross salary sacrifice. - Only known option to employee.

  1. Notification: Employee is leaving employment or has had their employment terminated.

  2. Employer action: Employer reviews and applies the early termination procedure, which involves:

    • Acting in alignment with the early termination clause in the salary sacrifice agreement where the termination fee is equal to the outstanding gross salary sacrifice.

    • The employee can settle the outstanding amount from their final net pay or leave balance. The employer must receive confirmation from the employee that they accept the planned deduction.

    • In some cases, the employee may also need to make a payment to the employer from their personal funds if their final pay is not sufficient. 

  3. Employee Settled: Once the employer confirms the employee has satisfied their internal requirements, Workride will release ‘Next Steps’ options to the employee.

  4. Successful resolution: Employee accepts ‘Next Steps’ options from Workride.


IdeaAlertResolution 2: Employer opts to reassign or re-purpose the ride benefit. 

  • Notification and attempted resolution: Same initial steps as Resolution 1. In some cases an employee may refuse to settle the outstanding salary sacrifice. 

  • Employer review: An employer may review whether to write this outstanding salary sacrifice amount off, or request Workride support.

  • Employer requests Workride support: The employer may contact Workride for assistance in re-assigning or repurposing the ride equipment.

  • Workride actions: Workride may under the request of the employer:

    • Re-assign the ride equipment lease to another employee, preparing the necessary lease and salary sacrifice agreements. 

    • Gift the ride equipment to the employer for internal business purposes. 

      • If this gifting occurs, the employer is then able to do what is desired with this equipment.

      • Eg. This may become a 'pool' bike/e-bike for general use, or simply be sold to recover any outstanding cost associated with this ride.


Note: This is provided as an example and is the default procedure that Workride operates on. Employers are advised to seek independent advice to ensure adaptability to their specific needs and internal policies.