If you are offering your employees the use of a company car as part of an employee incentive arrangement package it is essential to have a company car policy to protect the business.
Read on for guidance on what should go into your company car policy to reduce the workload on HR professionals and to provide clear rules on company car use for your employees.
You need a company car policy if you offer employees the use of company cars as part of their employment benefits package or because a car is an essential requirement of the job.
A company vehicle use agreement sets out who qualifies for a company car and the rules of use.
The policy helps protect the company against:
Non-compliance by the employee with The Working Time Regulations 1998
Disputes and claims by employees over company car usage
Discrimination claims over company car allocation
Health and safety breaches
Reputational damage to the company if a company car is involved in an accident
If you have an existing company car policy it may be time to review it. We recommend consulting with staff and unions to get their input on any proposed changes to increase buy-in.
Contact the team via our quotation form or simply call us on 0333 041 1094 to discuss how Neathouse Partners can support you with all your HR and employment law needs.
With around 10% of cars on the road in company ownership (Vehicle Licensing Statistics 2022), it pays to invest in a company car policy that meets the needs of your business.
Take time to consider the ground rules for your company car policy as it will be binding on the company as well as on your employees.
Consider if:
No one wants to foresee acrimonious employee exits or accidents involving company cars but HR managers must plan ahead and cover most eventualities, especially when putting a company car in the hands of an employee.
With a comprehensive company vehicle policy, it may not happen, but if it does, you have it covered. Potentially by looking ahead, companies can save thousands of pounds on:
It also makes the day job easier for HR staff managing recruitment and employee expectations when you can point an employee to the policy for the guidance they need.
What goes into your company car policy or policies depends on your business and the reasons you are providing company cars to some of your employees. Is the car a recruitment sweetener or an essential component of the job or a combination of the two?
Working out what your company vehicle policy is designed to protect against is a useful starting point.
Anticipating issues is another great way to keep ahead. For example:
If you have a bespoke company car policy that meets your business needs then that’s great but it needs to be consistent with your employees' contracts of employment or directors' service agreements and your suite of HR policies, including your:
Inconsistencies between policies can be seized on by aggrieved or exiting employees or by third parties after an incident involving one of your company cars. Spending time ironing out inconsistencies keeps things simple when you need to rely on your HR policies.
To ensure consistency, we can review your suite of HR policies and procedures. Our lawyers will flag any issues to address on the latest legislation, regulations, best practice or consistency between your policies.
You would think that drawing up a company car policy would be simple. It normally is until a problem, grievance or claim arises.
Our expert team of lawyers and HR specialists can:
Contact the team via our quotation form or simply call us on 0333 041 1094 to discuss how Neathouse Partners can support you with all your HR and employment law needs.