The Employee Contract Amendment Agreement (ECAA) is an agreement signed by both the employee and their employer.
It states that the employer is providing the employee with an electric vehicle in exchange for the employee sacrificing some salary to cover the cost of the lease or subscription. The ECAA includes key information about the employees participation in the scheme, including:
- The terms and conditions of the employee’s use of the electric vehicle
- The additional charges that the employee must cover in relation to the electric vehicle (such as fines, damages or tax increases) and how these are deducted from salary
- A summary of the electric vehicle that has been ordered (including any extras such as insurance or maintenance);
- A summary of the employee's salary sacrifice by month and their estimated tax savings;
- The vehicle delivery process;
- The order cancellation process and the early termination steps.
The ECAA also sets out the options available to employees and employers in different scenarios that may arise, including a change in an employee’s salary, family friendly leave, long term sickness, resignation or redundancy or a breach of the terms of the lease.
The ECAA also sets out whether the employee, employer or The Electric Car Scheme is liable for any early termination fees that might arise if an electric vehicle has to be returned early.