These types of scheme involve employees agreeing to forego part of their wages or salary, in return for some other form of non-cash benefit equivalent to the 'salary sacrifice' e.g. childcare vouchers, home computing equipment, company vehicles.
Salary sacrifice should never take place without there being a written agreement in place otherwise the employee could claim unlawful deduction of wages.
Great care should be taken when drafting salary sacrifice letters to ensure employees fully understand what they are agreeing to, that the terms are appropriate and fair, and that there is total clarity in terms of what will happen to the benefit should the employee have a long-term sickness absence, take maternity/paternity leave, or leave the organisation etc.
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