If you’re making an employee’s role redundant and they have a car through The Electric Car Scheme, we’re here to help guide you through the process. When someone leaves partway through their lease, there are a few options available for handling their electric vehicle.
What are the options?
The employee can purchase the car outright from the leasing company
Should the employee wish to retain the vehicle after leaving the organisation, they may be able to purchase it directly from the leasing provider. The total cost would comprise the vehicle’s market value along with any applicable Early Return Fee.
They can take your car with you to your new company
If the employee is transitioning to a new employer following redundancy, we can assist with transferring the vehicle to their new company. Provided both the current and new employers are in agreement, we would begin by setting up our cost-neutral scheme at the new organisation (if not already in place) and then initiate the novation process. Please note, there is a cost associated with novating a vehicle, which we can advise on depending on the leasing provider.
Both the current and new employers must consent to the novation and will be required to sign the necessary documentation. Additionally, the new employer must be approved for credit by the existing leasing company. The novation process typically takes between 2 to 6 months to complete, depending on the parties involved.
Find a new owner
If none of the above options are suitable, we will look to re-use the vehicle in support of our mission to help more people access second-hand electric vehicles.
This process begins by marketing the vehicle internally within your organisation to see if any colleagues are interested in taking over the lease. If there is no interest internally, we will then open the opportunity to our wider customer base.
The process is similar to a company-to-company transfer, except the vehicle would be novated to a new driver instead.
How long do they have to have had the car for before they or the company is protected?
As part of our highly competitive risk protection, we offer redundancy cover from day one of the car being delivered. In these cases, ECS will cover the cost of the Early Return Fee.
What do I need to do if I am making someone redundant?
To facilitate a smooth and efficient process, we kindly request that you inform us of any impending redundancies as soon as possible, ideally including an anticipated end date.
To start an early return you just need to head to the ‘Orders’ page in your employer portal, find the employee's car, select ‘Manage’ and then ‘Return Car’. This will open up a form that will ask for:
- Reason for Early Termination
- Supporting Documentation
- Vehicle Location
- Employee’s last day of employment
- Employees last day of payroll
This information will enable us to engage with the leasing provider to accurately calculate any applicable early termination fees.
Following receipt of these details, we will liaise with your HR, Finance, or Payroll department to obtain a copy of the redundancy letter and initiate the necessary administrative steps.
Please be assured that all information will be treated with strict confidentiality until the redundancy has been formally concluded and we are able to proceed with the next steps.
Where should the employee keep the car in the meantime?
We strongly advise against the vehicle being driven after the employee's final working day, as insurance coverage may no longer be valid. Prior to their departure, the employee should either leave the vehicle on company premises (with the company’s permission, where feasible) or keep the vehicle securely at their residence in the interim.
Can the employee transfer the car from a Business to Personal Lease?
Unfortunately, the lessors won’t be able to transfer cars from a Business to Personal Lease.
Summary: When am I liable for the Early Returns Fee?
In cases of redundancy, neither the company nor the employee will be responsible for the Early Returns Fee, as this will be covered by The Electric Car Scheme. However, please note that if the situation is later determined to be a Dismissal for Cause, this arrangement may be subject to change.