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How do I handle Early Termination & vehicle returns?

Take a look at our Early Termination Protection overview. This varies by funder.

Written by Steve Tigar
Updated over 2 weeks ago

For employers, the Early Returns team are here to support you, and can explain all the options available to you. To help us do that, please complete the Early Return Enquiry form which will provide us with the information required to assess the circumstances and advise on remaining payments and salary deductions still owed.

Once you have completed the form, the team will be in touch with next steps. Please allow 2 business days for this.

The Early Termination Protection varies slightly by funder - use the drop-downs below to check the terms for a specific order. You can also use the Attrition Rate Calculator to check whether your organisation is eligible for Early Termination Protection.

Lex Autolease

Trigger for Termination

Charge for

termination less

than 3 months after

Start Date

Charge for

termination between

3-6 months after

Start Date

Charge for

termination more

than 6 months after

Start Date

The Employee has their driving licence revoked due to ill health following a Health Risk Assessment

No penalty

No penalty

No penalty

The Employee dies in service

No penalty

No penalty

No penalty

The Employee goes on long term sick leave and has a reduction in salary in accordance with the Customer's HR policies in place from time to time.

No penalty

No penalty

No penalty

Termination of an Employee's employment due to resignation

50% of outstanding rental

3 months' rental

(but only one month rental is payable under Protection Service)

3 months' rental

(but only one month rental is payable under Protection Service)

Termination of an Employee's employment due to dismissal

50% of outstanding rental

3 months' rental

(but only one month rental is payable under Protection Service)

3 months' rental

(but only one month rental is payable under Protection Service)

Termination of an Employee's employment with the Customer due to redundancy.

50% of outstanding rental

3 months' rental

3 months' rental

(but only one month rental is payable under Protection Service)

The Employee goes on parental leave, which includes adoption.

Option 1 return car and pay 50% of outstanding rental

OR

Option 2 pay 6 months' rental (less any monthly payments made) and then keep the car rent-free during parental leave for a period not exceeding 12 months. Please note that the employer will still be liable for motor insurance payments.

Option 1 return car and pay 50% of outstanding rental

OR

Option 2 pay 6 months' rental (less any monthly payments made) and then keep the car rent-free during parental leave for a period not exceeding 12 months. Please note that the employer will still be liable for motor insurance payments.

Option 1 return car and pay 3 months' rental (but only one month rental is payable under Protection Service)

OR

Option 2 keep the car rent-free during parental leave for a period not exceeding 12 months. Note - lovelectric will also pay for motor insurance if it is

with LLG.

The Employee goes on international secondment or otherwise has a career break (excluding any parental leave)

50% of outstanding rental

3 months' rental

3 months' rental

The Employee has their licence revoked for any reason other than ill health

50% of outstanding rental

3 months' rental

3 months' rental

The Employee's hours of employment are reduced, or there is a breach of the national minimum wage requirements

50% of outstanding rental

3 months' rental

3 months' rental

The Employee retires from employment with the Customer

50% of outstanding rental

3 months' rental

3 months' rental

Arnold Clark

Trigger for Termination

Charge for

termination less

than 3 months after

Start Date

Charge for

termination between

3-6 months after

Start Date

Charge for

termination more

than 6 months after

Start Date

The Employee has their driving licence revoked due to ill health following a Health Risk Assessment

No penalty

No penalty

No penalty

The Employee dies in service

No penalty

No penalty

No penalty

The Employee goes on long term sick leave and has a reduction in salary in accordance with the Customer's HR policies in place from time to time.

No penalty

No penalty

No penalty

Termination of an Employee's employment due to resignation

40% of outstanding rental

3 months' rental

(but only one month rental is payable under Protection Service)

3 months' rental

(but only one month rental is payable under Protection Service)

Termination of an Employee's employment due to dismissal

40% of outstanding rental

3 months' rental

(but only one month rental is payable under Protection Service)

3 months' rental

(but only one month rental is payable under Protection Service)

Termination of an Employee's employment with the Customer due to redundancy.

40% of outstanding rental

3 months' rental

3 months' rental

(but only one month rental is payable under Protection Service)

The Employee goes on parental leave, which includes adoption.

Return car and pay 40% of outstanding rental

Return car and pay 3 months' rental

Option 1 return car and pay 3 months' rental (but only one month rental is payable under Protection Service)

OR

Option 2 keep the car rent-free during parental leave for a period not exceeding 12 months. Note - lovelectric will also pay for motor insurance if it is

with LLG.

The Employee goes on international secondment or otherwise has a career break (excluding any parental leave)

40% of outstanding rental

3 months' rental

3 months' rental

The Employee has their licence revoked for any reason other than ill health

40% of outstanding rental

3 months' rental

3 months' rental

The Employee's hours of employment are reduced, or there is a breach of the national minimum wage requirements

40% of outstanding rental

3 months' rental

3 months' rental

The Employee retires from employment with the Customer

40% of outstanding rental

3 months' rental

3 months' rental

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