A company has the right to terminate its Services Agreement with The Electric Car Scheme at any time. However, doing so will mean employees can no longer participate in the EV salary sacrifice scheme.
It’s worth noting that if no employees currently have a vehicle through the Scheme (e.g., all cars have been returned), there will be no ECS admin fee to pay.
Agreement Term and Notice Period
The Services Agreement is effective for a minimum period of two years. After this period, it continues on a rolling basis and can be terminated by either party with 90 days' written notice.
Early Termination (Before the Minimum Term)
The Services Agreement may be terminated before or after the two-year minimum term by either party with immediate effect, under the following circumstances:
Serious breach: If one party commits a material breach of the agreement that cannot be remedied, or fails to remedy it within 30 days of receiving written notice specifying the breach.
Insolvency or financial distress: If one party becomes insolvent, goes into liquidation, appoints an administrator, fails to make payments when due, or enters company restructuring or bankruptcy proceedings.
Termination Due to a Scheme "Pause"
The company may also initiate a temporary pause on the Scheme, which involves suspending new employee sign-ups. To do so, the company must provide written notice and reasoning at least 30 days in advance.
If the pause continues for more than one month, The Electric Car Scheme reserves the right to terminate the Services Agreement, as it may no longer be economically viable to maintain the scheme under such conditions.