we protect the employer.
Only Workride’s legal structure ensures employers can safely offer the benefit while fully recouping costs before ride ownership is offered to employees eliminating employer and director risks as a service provider. Check out the other options below and see why Workride has earned the trust of over 1,000 organisations across New Zealand.
Workride – Fully Compliant & Protected Model
Legal & CCCFA Compliance
Workride is a registered Financial Service Provider (FSP), ensuring the program is compliant with obligations and disclosures.
Equipment Ownership
Workride retains ownership during the lease period while employees complete their salary sacrifice obligations. Ownership is offered directly to the employee following the completion of their financial commitment, ensuring employers recoup their cost. In the case an employee reneges or defaults on their repayment obligations the employer’s financial outlay is protected as the asset can be recovered to recoup their costs.
Protection & Cost Recovery
Workride, as owners of the equipment, have a proven process to ensure employers are able to recover their costs through a compliant framework.
Health & Safety Risks
As a third party leasing service, Workride holds all regulatory risk, enabling employers to externalise any liability.
Consumer Guarantees Act (CGA)
Employees are fully covered with CGA as Workride is the Consumer Equipment Supplier via our partnering retailers.
Financed Arrangement
Workride, as a financial service provider, offers a compliant financed arrangement passing on all interest costs to employees, meeting affordability and disclosure requirements
Employer Owns & Leases Equipment to Employee
Legal & CCCFA Compliance
Credit Contract and Consumer Finance Act 2003 (CCCFA) disclosure obligations must be followed if leasing equipment to employees for personal journeys. Any future obligations to transfer ownership to employee would classify the arrangement as a finance lease under Section 16 of the CCCFA.
Equipment Ownership
The employer owns the equipment.
Protection & Cost Recovery
Employers own the equipment, potentially holding unwanted assets if the associated employee leaves before completing their salary sacrifice.
Health & Safety Risks
Employers face significant exposure and are liable for any potential incidents occurring on employer provided equipment.
Consumer Guarantees Act (CGA)
CGA only applies to consumers, meaning any employer-purchased equipment loses this coverage. Additionally, many product warranties do not cover commercial applications voiding any further supplier warranties.
Financed Arrangement
Employers cannot charge fees or interest to employees via salary sacrifice - Registered FSP requirements.
Employer Purchases & Gifts Equipment to Employee (Unprotected Bonding Model)
Legal & CCCFA Compliance
Employers are providing Credit Sales to employees as defined in the Credit Contract and Consumer Finance Act 2003 (CCCFA). This is an unprotected liability for employers and any attempts to protect or take security would categorise this as a Consumer Credit Contract, with fines of up to $600,000 without the appropriate employer accreditation.
Equipment Ownership
Employers purchase equipment and gift it to employees on day one. Any bonding agreement in the salary sacrifice forms an unprotected credit sale with no asset recourse protection in the event the employee defaults on their repayment obligations.
Protection & Cost Recovery
Bonding agreements are legally risky and often unenforceable under the Wages Protection Act 1983, employers cannot deduct money from an employee’s final pay without written consent at the time of deduction. Often an employee leaves on bad terms, leaving the employer unable to recover costs through internal processes. To chase outstanding balances through asset recovery or debt collection, an employer would need FSP accreditation to comply with consumer credit law.
Health & Safety Risks
Employers are classified as a Consumer Equipment Supplier through the direct gifting process, potentially leading to new public liability risks requiring insurance updates.
Consumer Guarantees Act (CGA)
An employer has gifted equipment directly to employees and they become the consumer equipment supplier. This means the employer is fully responsible for warranties, returns, repairs, and compliance under the Consumer Guarantees Act (CGA) and Fair Trading Act (FTA). Importantly, these obligations cannot be waived or contracted out of, even with signed agreements - leaving the employer exposed to legal and financial risk.
Financed Arrangement
Employers passing through interest or fees to the employee through a salary sacrifice would be providing consumer credit contracts. Employers hold all liability for this and if the third party is coordinating the administration.