cycle scheme - University of Bath

Agreement to amend the terms and conditions of your employment
Agreement made between:
The University of Bath of Claverton Down, Bath, BA2 7AY (hereinafter called the “Employer”)
And [
] of [
] (hereinafter called the “Employee”)
This Agreement outlines the conditions under which the Employer will lease the “Cycle Package” to the
Employee in return for lease payments being made by way of a salary sacrifice scheme.

The Employee has personally selected a cycle and any related cycle equipment of their choice
(hereinafter called the Cycle Package”), which has a total monetary value of not more than £1,000 (One
Thousand Pounds), including VAT from Cyclescheme Ltd and has obtained a written quotation from
them outlining the exact specification / content and cost of the Cycle Package, which is attached
hereto.

The Employer agrees to purchase the Cycle Package and lease it to the Employee (who agrees to use it
as his / her primary means of transport to and from work, but who may also use it for recreational
purposes) in accordance with this Agreement.

Title (Ownership) in the Cycle Package shall vest and remain vested in the Employer until, if and when
this Agreement is terminated, and the Employer transfers ownership of the Cycle Package to the
Employee. For the avoidance of doubt at no time during the continuance in effect of this agreement
shall the Employee own the Cycle Package. Consequently the Employee may not sell, lease, loan or
assign the Cycle Package to any third party or allow any third party to use the Cycle Package.

The Employer agrees to provide the Employee with the use of the Cycle Package for the duration of this
Agreement which shall be for a period of 24 months (unless extended as outlined below), during which
time the Employee agrees to equal monthly reductions being made to his /her gross salary (“Salary
Sacrifice”). The Salary Sacrifice shall take the following form; each month the Employee’s gross salary
will be reduced by 1/24 of the total cost of the chosen Cycle Package, until such time as the total cost of
the Cycle Package has been recovered in full. The Salary Sacrifice may affect the level of any personal
pension contributions made by the Employee and/or their entitlement to sick pay or other benefits.
The Employee should seek advice if they have any queries in this respect.

To be eligible to participate in this Salary Sacrifice scheme the Employee’s salary (after the Salary
Sacrifice reductions) must remain above the National Minimum Wage. If at any time during the
continuance of this Agreement the Employee’s salary falls to a level that would mean that if the Salary
Sacrifice reductions were made, it would be below the National Minimum Wage, the Employer reserves
the right in its discretion, (to the extent it is lawfully entitled to do so), to either suspend the reductions
for a period of time or to deduct them instead from the Employee’s net salary. In the latter case the
Employee would lose their entitlement to potential tax benefits.

Once the Employee makes the decision to participate in this scheme and signs and returns this
Agreement, they cannot then change their mind and will be obligated to continue with the scheme for
the full 24 months (or any extended period which may apply) and the appropriate reductions will be
made to their gross salary until the Employer has recouped the full cost of the Cycle Package.

If the Employee is absent from work for any reason, the Salary Sacrifice reductions will continue to
reduce the pay that the Employee receives during the absence as long as and to the extent that:-
o
o
The pay is of a kind against which Salary Sacrifice reductions can legally be made and so
excluding for example (but without limitation) statutory maternity pay, paternity, adoption and
statutory sick pay; and
The continuation of the Salary Sacrifice reductions is not in breach of the National Minimum
Wage Regulations.

If during a period of absence the Employee is temporarily not in receipt of sufficient pay to permit the
Salary Sacrifice reductions to continue but remains employed by the University, (e.g. if the Employee is
on unpaid sick leave during an extended period of sickness absence or during any other period of
unpaid leave), then to the extent permitted by law, the Salary Sacrifice reductions will be suspended for
the period in question. In any such case the Salary Sacrifice reductions will recommence on the
Employee’s return to work and the 24 month period over which this Agreement shall run will be
extended as appropriate by the total number of weeks / months during which the reductions were
suspended However, this Agreement will not be extended for more than six months and if after 30
months from the start of this Agreement any payments under this Agreement have yet to be made, the
full balance (e.g. the total of all payments yet to be made) will, to the extent permitted by law become
payable to the Employer. The Employer may seek to deduct this from any future net salary payments
due to the Employee or the Employer may require the Employee to pay the outstanding balance in a
single lump sum within 14 days of the request. The Employee’s signing of this Agreement shall be their
consent to any such deductions being made. In either case the Employee would lose their entitlement
to potential tax benefits.

The Employee will be responsible for keeping the Cycle Package clean and in good condition and
ensuring that it is regularly serviced / repaired as appropriate at his / her own cost and that all
requirements of the manufacturer’s warranty and the manufacturer’s recommendations are fully
complied with at his/ her own cost. The Employee must only use the Cycle Package properly and in a
manner which will not breach the manufacturer’s warranty or instructions and the Employee must not
modify or alter the Cycle Package in any way. The Cycle Package must also be made available for
inspection by the Employer at its request at any time. The Employee shall also be solely responsible for
any fines or penalties imposed as a result of his / her use of the Cycle Package and agrees to indemnify
the Employer in respect of any claims made against it and all damages, costs and expenses incurred by
it as a result of any third party claim arising out of the state, condition or use of the Cycle Package. It is
understood that this indemnity obligation shall survive the termination of this Agreement.

The Employee will also be responsible for insuring the Cycle Package against fire, theft, loss or damage
and may need to provide evidence of sufficient insurance cover to the Employer, during the period of
this Agreement, if asked to do so. If the Employee is asked to provide such evidence of appropriate
insurance cover and fails to do so, the Employer reserves the right to arrange such insurance cover
itself, in which case the insurance premiums will also be deducted from the Employee’s salary
thereafter and the Employee’s signing of this Agreement constitutes their consent to such additional
deductions being made. The Employee will also notify the Employer forthwith of any loss or damage to
the Cycle Package and hold any insurance money received in trust for the Employer. The Employee also
irrevocable authorises the Employer to collect insurance monies in respect of the Cycle Package from
the insurer in which case the monies will be used in the discretion of the Employer to, make good the
damage, replace the Cycle Package or any part thereof and / or compensate itself for any losses it may
suffer.

The Employee must ensure that the Cycle Package s/he selects is appropriate for their personal use and
that it is medically safe for them to use it (by checking with their GP where appropriate). The Employee
also undertakes to use the Cycle Package in a safe manner complying with road safety requirements
and wearing a cycle helmet in appropriate circumstances and not to carry passengers on the Cycle
Package. The Employer will not be liable for any loss or damage suffered or any personal injury caused
as a result of the use of the Cycle Package.

If the Cycle Package (or any part of it) is lost or stolen or damaged beyond economical repair, the
Employee will either replace it in full at their own expense and continue with this Agreement or
terminate this Agreement by paying the Employer any “Remaining Balance” (this means the total cost
of the Cycle Package less any reductions to salary already made), in full, (perhaps using money paid by
the insurer). Until the Employer has received the total cost of the Cycle Package in full this Agreement
will continue in full force and effect and the Employer has right to made deductions from the
Employee’s salary notwithstanding any loss or damage to or theft of the Cycle Package.

Should the Employee’s employment with the University be terminated (for whatsoever reason), the
total of all the payments due under this Agreement yet to be made (“the Remaining Balance”) shall
become repayable by the Employee to the Employer immediately. This payment will not benefit from
any tax exemptions and will be payable as follows:o
o
If the Remaining Balance is less than any net salary payments due to the Employee, the
Employer shall deduct it from those remaining net payments and the Employee’s signing of this
Agreement shall be their consent to such a deduction being made.
If it is not possible to deduct the Remaining Balance from any net salary payments due to the
Employee for any reason or if the Remaining Balance exceeds the Employee’s net salary
payments it is further agreed that any outstanding balance shall be paid by the Employee by
cheque to the Employer in full within 6 weeks of leaving the University. For the avoidance of
doubt any Remaining Balance on the termination of the Employee’s employment shall be
recoverable by the University as a debt.

When this Agreement terminates (at the end of the 24 month period or such extended period as may
apply in accordance with the above), the Employer shall contact the Employee to discuss what is to
happen next.

The Cycle Package should come with a manufacturer’s warranty and it is the Employee’s responsibility
to check that this is the case. If any problems are experienced with the Cycle Package the Employee
should contact the manufacturer and/or the supplier direct in relation thereto. The Employer has no
responsibility for any defects in the Cycle Package and shall not be liable under any circumstances for
any direct loss or any indirect, punitive, incidental, special or consequential damages or losses of any
nature arising out of this Agreement.

The Employee confirms that s/he has read and understood the details of the Cycle Scheme Bike to
Work Initiative and agrees to and will abide by the terms of this Agreement and hereby authorises the
Employer to make reductions to their salary in accordance with this Agreement.

It is understood that the Finance Office must receive this Agreement duly completed and with the
quotation form Cyclescheme attached to it for an application to be processed.
Employee’s details:
Name: …………………………………………………………………….
Address: ………………………………………………………………………………………….
…………………………………………………………
Post Code:…………………………………
Home Tel. No: …………………………………
Mobile Tel. No: ……………………………
Signature: ………………………………………..
Payroll No:………………. (as it appears on your payslip)
Please return the original of this Agreement duly signed and completed with the quotation from Cyclescheme
attached to it and clearly marked Cyclescheme to:- Payments Office, Finance & Procurement