1PURPOSE

1.1To assist employers to promote a healthier workforce and to make the most of the Green Transport Plan initiative, the Department for Transport has implemented a Cycle to Work Scheme. The scheme allows employees to purchase a cycle and safety equipment from their employer on a salary sacrifice basis, allowing the employee to make savings on VAT, Income Tax and National Insurance.

1.2This Policy sets out the requirements of employees wishing to utilise the Transport Executive’s Cycle to Work Scheme.

2GENERAL PRINCIPLES

2.1The Cycle to Work Scheme is available to all Transport Executive employees who wish to purchase a cycle and cyclists’ safety equipment (Equipment) and is run in conjunction with Cyclescheme.

2.2The Cycle to Work Scheme is operated on a salary sacrifice basis. The scheme enables employees to gain financially as Income Tax and National Insurance contributions are not paid on this part of their salary. The employee also benefits from the ability to spread the payment of the equipment purchased over a 12 month period, and are not required to pay VAT on the original purchase price of the equipment.

2.3Repayments of loans given by the Transport Executive will be required to be made by the employee in 12 monthly instalments as a direct deduction from their monthly salary payment.

2.4Employees are asked to contact the Human Resources Team for any further information or to join the scheme.

3EMPLOYEE RESPONSIBILITIES

3.1The loan period of the equipment will be 12 months, during which the employees’ monthly salary will be reduced to cover the full re-payment of the loan provided.

3.2During the loan period it will be considered that the employee is hiring the equipment from the Transport Executive, as such, ownership of the equipment is not transferred to the employee until all hire payments have been received.

3.3In the first instance employees will receive a quote for their required Equipment from a Partner Shop (all shops who are part of the scheme). The employee then applies for their Secure Voucher via the Transport Executive’s Cyclescheme Extranet Web-link and will take this to the Partner Shop to receive the chosen Equipment.

3.4Before the issue of the Secure Voucher the employee is required to sign a Hire Agreement (attached as Appendix A) which authorises the salary sacrifice deductions from the employees’ gross wages.

3.5Upon collection of the equipment, the employee is required to produce photographic identification to the Partner Shop.

3.6It is the responsibility of the employee to adequately insure the equipment. If the equipment is damaged or stolen this should be reported to the Human Resources Team and Cyclescheme immediately.

3.7It is the responsibility of the employee to maintain the equipment in accordance with the manufacturer’s instructions, provided by the Partner Shop during the hire period.

3.8Cyclescheme and the Transport Executive accept no responsibility for loss or damage to the equipment after the Secure Voucher is issued.

3.9Employees’ pension contributions will be based on the reduced salary plus the value of the Equipment payments. Entitlements to sick pay, maternity pay, and paternity pay will be based on the reduced salary only.

3.10Employees’ Working Tax Credit may be affected. Therefore, it is advisable for employees’ to contact the Working Tax Credit helpline before joining this scheme.

4NOTICE/TERMINATION

4.1In the event that an employee leaves the employment of the Transport Executive for any reason, the balance owing on the loan will be taken from the employees’ final net salary, ownership of the equipment will then transfer to the employee at that time.

4.2The Transport Executive has the discretion to cancel the employees’ loan in the event of life changing circumstances, subject to the approval of the relevant Management Board Member.

4.3The Transport Executive reserves the right to change the operator of this scheme within reasonable notice.

For and on behalf of UNISON

……………………………………….. ……………………………….

Chair, Branch CommitteeDate

For and on behalf of South Yorkshire Passenger Transport Executive

……………………………………….. ………………………………..

Passenger Services DirectorDate

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AGREEMENT REFERENCE: P41 (APR 2008)