The Employee Contract Amendment Agreement (ECAA) is an important document that forms part of your journey when leasing an electric vehicle (EV) through The Electric Car Scheme. It’s signed by both you (the employee) and your employer, and it outlines the formal agreement behind the salary sacrifice arrangement.
In simple terms, the ECAA confirms that your employer is providing you with an electric vehicle as a benefit, and in return, you agree to sacrifice a portion of your gross salary to cover the cost of the lease or subscription.
But the ECAA does more than just confirm the basics - it provides all the essential details and protections to ensure both you and your employer are clear on how the arrangement works.
🔍 What’s included in the ECAA?
The ECAA contains key information about your participation in the scheme. Here’s a breakdown of what you can expect:
📋 Terms of Use
It sets out how you can use the electric vehicle, including any responsibilities you have in keeping the vehicle in good condition, and following the rules set by the leasing provider.
💸 Additional Charges
It clearly explains what types of extra costs might arise, such as parking fines, damage, or increases in road tax, and how these will be handled. These charges are typically deducted from your salary if they occur.
🚗 Vehicle Summary
You’ll find a detailed summary of the electric vehicle you’ve chosen, including any selected extras like:
- Insurance
- Maintenance packages
- Additional services (like tyre cover)
📊 Salary Sacrifice & Tax Savings
A breakdown of the monthly salary sacrifice amount is included, along with an estimate of your tax and National Insurance savings, so you know exactly what to expect on your payslip.
🚚 Vehicle Delivery
The process for receiving your new EV is outlined, including who to contact if there are delays or issues.
❌ Order Cancellation & Early Termination
In case your circumstances change, the ECAA explains how you can cancel your order before delivery or return the vehicle early, and what the financial implications might be.
🔄 Life Happens: What If Things Change?
The ECAA is designed to be flexible and take real-life scenarios into account. It outlines what happens in situations such as:
- A change in your salary
- Family leave (e.g. maternity, paternity, adoption leave)
- Long-term sickness
- Resignation or redundancy
- A breach of the lease terms
Each of these situations is handled with care to make sure there’s a fair and manageable process for both you and your employer.
💰 Who Pays for Early Termination?
Sometimes, a vehicle needs to be returned early, whether due to a personal situation or a change in employment. The ECAA clearly sets out who is responsible for any early termination fees:
- The employee?
- The employer?
- The Electric Car Scheme?
This helps avoid surprises and ensures that both parties understand the cost implications upfront.
🤝 Why It Matters
Signing the ECAA is a key part of making your EV lease official. It gives you clarity, peace of mind, and a clear record of how everything works, so you can enjoy the benefits of driving electric, worry-free.
If you have any questions about your ECAA, you can always reach out to your scheme administrator or contact The Electric Car Scheme support team for guidance.