The morale rules are changing a bit for Five Leagues.
This is a change intended specifically for 5L and won't be fitted into 5P (though you could adapt it just fine).
First, the players squad no longer tests morale. You're heroes right? (or scoundrels with only the gallows waiting for you but either way, nowhere to run).
You can bail from a fight by moving to the table edge and a new "Star" option will let you flee instantly (once per campaign).
For the bad guys, its also simpler:
You still roll a Morale Die for each dead bad guy but now there's nothing to track.
Instead, each 1 or 2 causes one of the bad guys to run away (starting with the guy closest to your table edge).
Note however that "Monsters" never run. So if you fight a giant lizard and 5 of its minions, you can scare off the minions but you still have to do battle with big mama.