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Salesperson Termination

MVDB has laid out steps for handling and responsibilities when a salesperson is terminated from a dealership

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Salesperson Termination

Regardless of the situation or circumstances that result in the termination of a salesperson, there are responsibilities to be handled by each party involved, both on the Dealer and the Salesperson…

Responsibilities of the Salesperson

salespersonTermination

Virginia law (§ 46.2‐1518) states in part that the Dealer must notify the Board “not later than the tenth day following the month of the termination”.  Dealers should not wait until the renewal period to notify the Board of a termination.

Salespersons who wish to terminate their employment at a dealership must surrender their salesperson’s license upon leaving.  

For information about transferring to another dealership, please see Transfer of Salesperson License.

Responsibilities of the Dealer

The Dealer should immediately notify the Board once a salesperson is no longer employed (terminated) at the dealership. 

The Dealer is responsible for the salesperson’s actions related to the sale of motor vehicles until the Dealer has notified the Board. 

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Notifying MVDB of Salesperson Termination

Step One: How to Notify MVDB

Completing the MVDB-41 is the recommended way to notify the Board of a salesperson’s termination. Alternatively, you can notify the Board of terminations via email as described below in item 2.

  1. Download and complete the MVDB 41, Salesperson Termination of Employment Form located here.
  2. Email dboardreply@mvdb.virginia.gov and include the following details:
      • Subject: SALESPERSON TERMINATION
      • Salesperson’s Full Name
      • Customer Number (as found on the Salesperson’s License)
      • Termination Date

Surrendering Salesperson License

Step Two: Submit Surrendered Salespersons license to the Board

Upon termination of a salesperson, the Dealer should make every possible effort to obtain the salesperson’s license and send it to the MVDB. Please write “TERMINATE” on the license, sign and date it.  If you use the MVDB 41, attach the terminated license directly to the form; otherwise, include the relevant information in your correspondence as indicated above in Step1, item 2. If the Dealer is unable to obtain the terminated salesperson’s license, the Dealer must communicate this to the Board by email, so the Board’s records can properly reflect this.

Search Active Dealer/Salespersons

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The MVDB processes notifications of salesperson’s termination promptly when they are received from Dealers.  Any changes in a salesperson’s employment status (i.e., termination, transfer) will be updated and posted on the MVDB website’s “Search Active Dealers/Salespersons”.  

It is therefore important that Dealers notify MVDB immediately when a salesperson is terminated, so the listing of licensed salespersons for the dealership can be updated. For example, if a Dealer submits a MVDB 41 indicating a salesperson is no longer employed at the dealership, that salesperson is removed from the MVDB’s listing of currently licensed salespersons at the dealership, normally on the next business day.