Return company car whilst on Sick Leave???

zzzLazyDaisy

pinkshoes wrote: »

At the last company I worked at, someone was off sick for nearly 6 months, so he had to return his car so that others could use it during the day to visit other companies. There policy stated that company cars are for use by other employees too, hence it had to be at work during the day, and he had to return it.

That is the point - the question of whether the car is returnable depends on the terms and conditions of the contract. If the employer has made no provision in the contract for the return of the vehicle during periods of absence, then it is an emolument of employment and the employee is entitled to retain it, or to be compensated for the loss of use of the car.

Bozo is not necessarily correct in his assertion that longer absences are different - they MAY be - but it all depends on the T&C's. If they are silent on the point, then the employee is entitled to keep the car as long as s/he remains an employee. If the employer takes the car back in the absence of any contractual provision entitling them to do so, they would be acting in breach of contract and the employee can make a claim to the Employment Tribunal for 'unlawful deduction from wages' (a benefit in kind is included in the definition of wages for these purposes). It would then be for the employer to show that it was contractually entitled to reduce the employees wages (ie contractual benefits) in this way.

SomeBozo

Hi zzzLazyDaisy

the question of whether the car is returnable depends on the terms and conditions of the contract.

When an employee gets given a company car to use, they will be some paperwork. Some of the paperwork for be for Tax purposes (form P11D), the other will be the "Employee agreement". This latter agreement will contain the obligations on the employee and employer. The employee will sign this prior to getting the car.

This agreement contains obligations on both parties, one of the obilgations will be about returning the car. Most agreements I have seen can terminate the agreement and have the car returned only by 1-6 month notice, unless :a)termination of employment b)Long term and planned absence and c)death.

I have not seen an agreement that prevents the company pulling back the car for business, operational or any other reason, as long as notice has been given.

If they are silent on the point, then the employee is entitled to keep the car as long as s/he remains an employee. If the employer takes the car back in the absence of any contractual provision entitling them to do so, they would be acting in breach of contract and the employee can make a claim to the Employment Tribunal for 'unlawful deduction from wages' (a benefit in kind is included in the definition of wages for these purposes). It would then be for the employer to show that it was contractually entitled to reduce the employees wages (ie contractual benefits) in this way

I diagree 100% with this and suggest the OP takes legal advice should this be a route down which he/her wants to persue.

Bozo

BillTrac

Back in 2000 I smashed my arm up. Off of work for three months. Couldn't drive and as a surveyor couldn't therefore do my job. After six weeks received a letter from my employers stating that in the event of long term sick they had the right to remove company cars. Next day got a call from the fleet department saying my replacement car would be delivered to home the following week!!

Shows that sometimes companies and the different departments do not talk to one another. Have you contacted your fleet team?

Maybe they feel if you cannot work then you cannot drive? Does your job rely on you being able to drive?

Bill

cazziebo

I'm more likely to agree with Bozo here.

If as you say the Ts & Cs are silent on this, then that suggests to me that the company are within their rights to ask for the return of their property.

The only exception I can think of on this one is in maternity cases, where the employee's benefits package must be maintained. In other cases, there is no obligation on the employer to pay full pay etc when someone is absent from work, and this will apply to the rest of the remuneration package. (Unless the contract expressly says otherwise)