If the employee leaves before the end of the hire period, they must pay their employer the balance of the amount outstanding. This should be deducted from their final net pay. The employee will no longer be able to benefit from the tax exemption.
Employees have access to this information and give their agreement on the second step of their user journey via the Pre-Contract Information which states:
- "What if I leave employment early or I’m made redundant?
If you leave your employment before the end of the hire term, the outstanding balance of your Hire Agreement will be taken from your remaining salary payments, and you can continue to use the Goods until the hire period ends. You’ll then be given the opportunity to buy the Goods for their fair market value. However, this transfer of ownership is the subject of a separate agreement and isn’t governed by the Hire Agreement."
The information is also available on the website in the FAQ section for employees benefit.
- "What if I leave my company within my Hire Agreement?
We completely understand that life can be unpredictable. If you were to leave your company or be made redundant in your hire period, the remaining gross balance would simply be deducted from your last payslip."
Please note: Reward Gateway does not provide tax advice and the above information is publicly available through the relevant HMRC channels.
More information can be found on the HMRC website and in this HMRC Cycle to Work guidance document.