Can my employer take away my Company Car?

Deargan

Can my employer take away my Company Car?

My line manager has informed me that the company intends totake away my company car benefit, although this may be replaced with anincrease in salary.

My company car benefit is in my contract, worded as follows:

27. Company Car

You will be provided with aCompany vehicle appropriate to your grade. Fuel will be provided for all business use. The vehicle may be used for private travel,but you will be required to pay for all such purposes. Further details will be provided by yourManager.

Changes to the terms and conditions in my contract is wordedas follows:

25. Changes in Terms and Conditions

From time to time your main termsand conditions of employment may be subject to change (i.e. by negotiatedagreements or by mutual consent). Should this occur you will be informed withinone calendar month from the change taking effect, either through the noticeboards or by written notification.

My line manager has informally notified me of the intentionsaying it was “75%” likely that they will. Can this happen? Am I obliged tojust let this happen?

My line manager also informed me that they already came to him with what they intended on replacing thecar with (in increase in salary) but that he told them it was too low – surely itshould be me involved in these conversations and not him?

He also informed me that should they decided to take the caroff me they would do so at a week’s notice as they only provide a week’s noticefor every year served (I’ll have served 2 years in May). Can they do this at such short notice?

Any help anyone can give would be very appreciated.

silkyuk9

an employer can do most things by giving you notice of it, generally that's either 30 or 90 day notice.

maninthestreet

Have you received in writing yet the intended withdrawal of the company car? The fact your manager stated it was '75%' likely to happen seems to indicate he/she is trying to pre-empt the actual official announcement. As your contract states any changes to the said contract requiers 1 month notice, they are contractually obliged to do this if they wish to withdraw the CC benefit and replace it with a salary increase.

Deargan

Hi, many thanks for your responses.

I haven't received any written notification, it has been all informal discussions.

With the 1 months notice, I'm worried that what it says in "within one calendar month" rather than at a month's notice.

Do I have leeway to negotiate any increase in salary? Surely taking the company car away they need to compensate for all the additional cost of having my own car (i.e. insurance, tax, maintainence etc.). otherwise its like a reduction in salary?

wwtrend

Is it just you who is losing the company car or others as well?

getmore4less

Ask them how they intend you to do the business miles, what transport will they be providing.

Deargan

Yeah its specifically to do with me only although as I'm the only one on my grade with a company car so they could say that grade is no longer being provided a car.

I live too far away and rural to use public transport so they know that I would have to get my own car. Informally, my line manager has told me the buisness miles reimbursement goes up from 12p per mile for company car to 34p per mile for your own vehicle.

getmore4less

Is the problem you are putting on a lot of personal mile compared to others it ups the lease costs


34p does not cover the cost of running car.

Annisele

Deargan wrote: »

I live too far away and rural to use public transport so they know that I would have to get my own car.

That makes it sound as though you only use the car to get to work. Is that right, or do you use it for business purposes as well?

If you do only use it for travel to work, then I think you might be right about the company deciding your grade no longer needs a company car.

Checkmate_2

This looks like an employer demotivating an employee into resigning. Oh well.

Caroline_a

34p per mile sounds low to me, most businesses adhere to the tax level which is 40p now I think.