Scheme Protection

We protect you as an employer against the risk of financial loss when an employee who is part of Cycle2Work or Car Maintenance resigns from their employment.

Why have Scheme Protection?

Get peace of mind

Early leavers are one of the biggest pain points for employers when looking to implement a salary sacrifice or net deduction benefit.

To protect our market-leading Cycle2Work and Car Maintenance schemes, and to help you recover outstanding funds from an employee, we have developed Scheme Protection.

How it works

Recover funds in three easy steps

If after following the early leaver process you are unable to recover the outstanding funds from an employee, Scheme Protection will make up the difference.

Step 1

Your employee resigns

The employer is unable to recover the outstanding amount from the employee’s final pay.

Step 2

Complete an Event form

Supply details and evidence through an online form.

Step 3

You’re all set to go

We take care of the rest and raise the payment.

What charges are involved?

What charges are involved?

Scheme protection has a modest admin fee. This varies depending on the length of the salary sacrifice and can be funded easily through your salary sacrifice NIC Savings.

Employers who register to Cycle2Work through the website, will have scheme protection as standard.

What other information is available?

Frequently asked questions

Everything you need to know.

Employers who register to Cycle2Work through the website, will have Scheme Protection as standard. Scheme Protection protect you as employers against the risk of financial loss when an employee who is part of a salary sacrifice or net deduction scheme resigns from their employment.

Early leavers are one of the biggest pain points for employers when looking to implement a salary sacrifice or net deduction benefit. To protect our market leading Cycle2Work and Car Maintenance schemes, and to help you recover outstanding funds from an employee, we have developed Scheme Protection.

If you have followed the early leaver process and you are unable to recover the outstanding funds from the employee, please report this by completing an online Scheme Protect event form.

If after following the early leaver process you are unable to recover the outstanding funds from an employee, Scheme Protection will make up the difference. All you will need to do is complete a Scheme Protect event form.

This service protects employers against the risk of early leavers, meaning if an employee were to leave the organisation and insufficient funds were available from their final pay then Halfords would make up the deficit.

Scheme Protection has a modest admin fee. This varies depending on the length of the salary sacrifice (We offer 12-, 18- and 24-month term options) and can be funded easily through your salary sacrifice NIC Savings.

Employers who register to Cycle2Work through the website, will have Scheme Protection as standard.

You will need to submit the following evidence through an online Scheme Protect event form:

  • That the event occurred within 60 days of an employee leaving the Employer
  • The date the employee started working for the Employer
  • Confirmation that the Early Leaver Process has been followed, AND the Employer has sought to recuperate the losses from the employee on two occasions before submitting a Scheme Protection event.

There are certain circumstances that are not eligible for Scheme Protection.

  • Employer has NOT taken at least 3 monthly deductions from the employee
  • Employee is in their probationary period
  • The Employer was aware that the Employee was going to resign
  • The Employee recommences employment with the Employer or any Associated Company(ies) within 90 days of Resignation (or within their notice period)
  • The Resignation was in advance of any anticipated notification of unemployment
  • Redundancy or dismissal
  • Retirement
  • Death in service

This is when an employee resigns from their contract of employment whilst in a salary sacrifice and/or net deduction arrangement with their employer.

Through our Scheme Protection, all applicants will be protected up to the value of £5000.

Payments can take up to 28 days to be processed from the moment an employer receives confirmation that their Scheme Protection Event is approved.

Only an employee resignation constitutes a Scheme Protection Event. At least three monthly salary sacrifice deductions will need to be taken from the employee for Scheme Protection to apply.

We recommend that the admin charge is funded by NIC Savings. Any other methods to fund the scheme should be discussed with your finance department.