Return of company car

FatherofFive

Looking for some help please...
I am currently on three month 'garden leave' and don't finish up until 28th Feb. During my leave I have had full use of my company car.
My employer has sent me a letter stating that they will withhold £1,000 from my final salary (due to be paid on 28th Feb) until 'they are satisfied that the car has been returned in good working order with no major exterior dents, scratches or interior damage'.
I have never come across this before.
In this circumstance can they legally withhold money from my salary?
Thanks in advance.

Undervalued

FatherofFive wrote: »

Looking for some help please...
I am currently on three month 'garden leave' and don't finish up until 28th Feb. During my leave I have had full use of my company car.
My employer has sent me a letter stating that they will withhold £1,000 from my final salary (due to be paid on 28th Feb) until 'they are satisfied that the car has been returned in good working order with no major exterior dents, scratches or interior damage'.
I have never come across this before.
In this circumstance can they legally withhold money from my salary?
Thanks in advance.

Possibly not but the problem is there is nothing whatever you can do to prevent it.

Obviously if there proves to be no damage, or any damage amounts to less than £1K they must pay the balance. If they don't you could easily sue in the small claims court. However that would take time which brings me back to my initial point.

k3lvc

Is there any reason for them specifically to believe there may be an issue with your car ?

Is the immediate payment of money on 28th critical to you ? If so is there a deadline before 28th where you can hand the car back without the deduction being necessary and, if so, is this worth more to you than the deduction/subsequent repayment ?

FatherofFive

Thanks for your replies.
The car will be handed back in excellent condition, it was more the principle of the deduction that I objected to. Having spoken to several people about this, no one has heard of it before.
I am going to ask for the guidelines to which they will use as one persons interpretation of mileage wear and tear will differ from another's.
Thanks

philbostavros

Hi

A quick google found some information that may be of use?

Rules for making deductions from your pay

Your employer is not allowed to make a deduction from your pay or wages unless:

• it is required or allowed by law, for example National Insurance, income tax or student loan repayments
• you agree in writing to a deduction
• your contract of employment says they can
• it is a result of any statutory disciplinary proceedings
• there is a statutory payment due to a public authority
• you have not worked due to taking part in a strike or industrial action
• it is to recover an earlier overpayment of wages or expenses
• it is a result of a court order

This is from the niDirect website: https://www.nidirect.gov.uk/articles/pay-deductions

Undervalued

philbostavros wrote: »

Hi

A quick google found some information that may be of use?

Rules for making deductions from your pay

Your employer is not allowed to make a deduction from your pay or wages unless:

• it is required or allowed by law, for example National Insurance, income tax or student loan repayments
• you agree in writing to a deduction
• your contract of employment says they can
• it is a result of any statutory disciplinary proceedings
• there is a statutory payment due to a public authority
• you have not worked due to taking part in a strike or industrial action
• it is to recover an earlier overpayment of wages or expenses
• it is a result of a court order

This is from the niDirect website: https://www.nidirect.gov.uk/articles/pay-deductions

That may allow it in this instance. Remember a "contract of employment" includes the firms policies, procedures, employee handbook etc etc.

But, as I said earlier, if they just do it anyway there is no realistic remedy unless they ultimately don't pay or withhold more than the actual cost of any damage.

TELLIT01

It's pretty standard for the user of a company car to be nominally liable for any damage to the car. I suspect many companies don't enforce their own rules if the employee is still with the company when the lease period expires.
In your case, you are leaving and they may be hit with charges for return of the vehicle. They are protecting themselves from any additional costs.

jobbingmusician

Hand over your car to a person, and take photos of the condition of the car when you hand it over. It you can get the handover person to sign something verifying the condition, so much the better. Saves any risk of it getting damaged in the company carpark and you getting blamed for this.....

rhino_horn

If your company car is a lease car then look up BVRLA standards. This is what your car will be measured against when it is returned.

These standards are absolutely enforced by the lease companies... And they charge an absolute fortune to repair any damage. You your car is immaculate, well make sure it is.

I would imagine that your company had fallen foul of these standards previously and without with holding money from. Employees they have found it difficult to reclaim the cost of repairs.

They are just being careful... Obviously. I don't know what your contract says or the legalities but I can understand where your employer is coming from.