Advice plz? Company car taken off whilst on sick leave?

sara34

My brother has just been diagnosed with cancer. He initially had a 2 week sick note whilst he had his biopsy. When the results came back as having Hodgkins Lymphoma , the hospital signed him off sick for another 6 weeks. He notified his employer and they have come today to pick up his company car (part of his terms and conditions - available for his use 365 days of the year). As they have set someone else on to do his job, even though they don't know how long he will be off for. Can they do this? He doesn't get sick pay only SSP and now he is without a car! - Any advice much appreciated!

Emmzi

is it a 'job need' car or a 'pay and benefits' type car? they can take the former. I'd review his contract before getting in touch.

andygb

I know that you must be going through a difficult time, and I hope that the treatment of your brother goes well.
However as the previous poster pointed out, if this car is required for the job, then the employer can not really be expected to take on another member of staff to cover the duties, and have to provide another vehicle. I am not sure what the case would be, if the car was provided simply as part of a benefits package. I imagine that would enable him to keep the car.

sara34

Thanks for the info, I suppose it would be a 'job need' as he is a surveyor and therefore needs to travel for business purposes, but it does say in his T&C that it is available for his personal use 365 days of the year (obviously unless he is on sick leave!) Anyway I suppose in the grand scheme of things, what does it matter? We'll get him to his hospital appointments between us :-) Thank you for the advice it has stopped me ranting about his employer at least !

Zazen999

It matters tax-wise! If he pays tax on it as a benefit then he needs to make sure that he isn't whilst he hasn't got it.

bumpoowee

I think you need to clarify whether it is a 'business need' or full on company car with his employer. My partner has a 'business need' car that can be taken back at any time. She is allowed to use it for personal reaons though. Some people in the company have a company car which is effectively a form of payment instead of wages, hence cannot be taken off them arbitrarily.

Anihilator

It can be used for personal use whilst in his posession fair enough but its a company car for company purposes and it isnt unreasonable for them to ask for it to be returned for a short period of term as someone else will need to do that work and the car will be needed.

Its unfortunate but people need to realise companies still need to perform whilst he is off sick. In all likiehood his absence could be very long term and the company cant just shut up shop during it.

far2812

I completely disagree - I believe that if the car is part of his employment contract ie it is stated in his contract that he will have the use of a company car - then because he is signed off sick should not warrant the company taking the car back.

I was in the same position about 5 years ago and I know it didn't even cross my employers' mind to retrieve the car.

Your brother should check his terms and conditions in his contract but I am sure that he will be paying tax for the privelege of a company car and whilst still in employment - should remain with him! Does it specifically state that he cannot use it whilst on sick leave?

sara34

Zazen999 wrote: »

It matters tax-wise! If he pays tax on it as a benefit then he needs to make sure that he isn't whilst he hasn't got it.

Will this be applicable if he is on Statutory Sick Pay? He is only getting this at the moment? I presume he wont be paying any tax? Should he notify the tax office anyway? Should his employer do that? - Sorry to ask so many questions, no idea where else I could get this sort of info.

bumpoowee

far2812 wrote: »

I completely disagree - I believe that if the car is part of his employment contract ie it is stated in his contract that he will have the use of a company car - then because he is signed off sick should not warrant the company taking the car back.

I was in the same position about 5 years ago and I know it didn't even cross my employers' mind to retrieve the car.

Your brother should check his terms and conditions in his contract but I am sure that he will be paying tax for the privelege of a company car and whilst still in employment - should remain with him! Does it specifically state that he cannot use it whilst on sick leave?

Agreed - IF the company car is part of the remuneration package. Not all company cars fit this description. Some are assigned to employees as and when they need them for their job role, as in my example above. The OP needs to clarify the terms and conditions relating to the company car that has been taken off their brother, however I suspect it is a business need car and the company are entitled to do this (and the OPs brother should have planned in case the company decided to take the car back for any reason).

sara34

I will check his terms and conditions for the wording, I know it says available for personal use 365 days of the year, with no clause about sick leave or anything. I will have another look.