Should an employee terminate their employment prematurely (meaning, before the contract period has expired), it's up to you how you want to proceed to terminate a leasing agreement prematurely. Below we discuss two different scenarios and how you could proceed to deal with them. Consider the suggestions below as just examples - it's up to you to create a process that works for you.
Terminate product without salary deduction
In the event that the product falls within the budget, the company can assign the product to another employee or alternatively terminate the contract prematurely.
If you want to terminate the contract prematurely, a "break fee" arises for early termination and a debt for the remaining rental period. This cost should reasonably be paid by the company as the equipment, based on budget, can be considered essential for the employee to be able to perform their job and should therefore not be charged to the employee who quits.
Terminate product with salary deduction
In the case where a product exceeds the budget and the employee pays part through salary deductions, there are two alternatives:
- The company pays the entire cost of early termination ("break fee" and remaining leasing), including the part that would have been paid by the employee.
- The company only takes the cost of early termination ("break fee" and remaining leasing) up to the budget. The remaining leasing cost that would have been paid by the employee is deducted from the final salary as a one time cost. If this alternative is preferable, the company should clearly inform its employees in advance that a possible debt may arise if the employment is terminated before the contract period has expired. Here, the company should also take a position on which procedure is followed based on whether the termination of employment is initiated by the employee or by the company.