Innovative salary sacrifice scheme proves successful in first 12 months in UK

An innovative approach to salary sacrifice schemes which eliminates risks for employers has proved a strong success in its first year in the UK with more than 30 businesses signing up to take part, according to leasing company sgfleet.

The Novalease scheme, first made popular in Australia, is a unique leasing agreement which means if an employee moves on to a new job, they can take their company car with them.

The solution fits well with sgfleet’s policy to solely fit Michelin tyres to its fleet, as Operations Director Chris Dorricott says those who participate take a real pride in their vehicles.

He explains: “You hear horror stories about how individuals treat company cars, but actually a lot of people take real pride in their vehicle even if they don’t own it. Novalease is a perfect fit for those people and for those businesses that want to reward their employees with the benefit of a company car, but are keen to avoid any liability should a person move on.

“We could save money by fitting different tyres to our vehicles, but in my mind Michelin tyres are the best value. They are the safest and last the longest, and our scheme is aimed at people who will appreciate those factors.”

Carlisle-based sgfleet now manages more than 2,200 cars and vans in the UK. It is part of the SG Fleet Group, which operates in Australia and New Zealand, managing around 84,000 vehicles in total.

Dorricott said: “Our focus at sgfleet is on avoiding all elements of risk and hassle for businesses while also creating a better offer for employees.

“And we don’t say a business has to have a certain number of employees. Our scheme is designed to work for employers of all sizes. There is no need to create a contingency fund or take out insurance to cover early termination costs.

“So far it’s proved popular with organisations that haven’t traditionally had a fleet, as well as those looking for an alternative to a cash allowance scheme. We look forward to its continued growth in 2015.”


Michelin, the leading tyre company, is dedicated to sustainably improving the mobility of goods and people by manufacturing and marketing tyres for every type of vehicle, including aircraft, automobiles, bicycles/motorcycles, earthmovers, farm equipment and trucks. It also offers electronic mobility support services on and publishes travel guides, hotel and restaurant guides, maps and road atlases. Headquartered in Clermont-Ferrand, France, Michelin is present in more than 170 countries, has 111,200 employees and operates 67 production plants in 17 different countries. The Group has a Technology Centre in charge of research and development with operations in Europe, North America and Asia. (