Company Cars

Company Vehicles

Many employees have the use of a company car for the better performance of their duties, while others have a company vehicle as a perquisite of the job. Whether the employee has use of a company car, and on what terms, will be set out in their employment contract.

Company cars - a paradigm shift

Until recently, company cars were generally considered only to be subject to the road traffic laws. All company vehicles are now also seen as work place equipment.

This paradigm shift in how company cars are viewed, coupled with the recent spate of high profile road traffic accidents involving company cars being driven for work purposes, has put company cars and how company vehicles are driven under the spotlight of health and safety.

It is common for employers to have a policy on company vehicles and driving standards in their employment handbook and incorporated by reference into the employment contracts of those employees with a company car. Such a policy is part of their health and safety policy.

Employers considering acquiring a new type of company vehicle or replacing an existing company car must carry out a risk assessment under their health and safety policy.

Company car drivers

All new drivers must be risk assessed under their employer's health and safety policy before being allowed to drive a company vehicle; drivers must plan their journeys and make a risk assessment that includes whether their company car is suitable for the task. This is a far cry from the time when the choice of company car was determined by the employee's status.

There have been other changes of attitude. One such change is that the company car became the company vehicle to take advantage of the previous lower charge to tax for vans - especially given the wide definition of "van".

It has also become common practice for the employment contract to enable the employer to replace the company car with a car allowance or mileage allowance. This has attractions for employer and employee alike, but any vehicle that is provided and used on the employer's business is subject to the same checks as company cars.

Keeping you up to date and support

Each time there is a law change that affects your employment contract, service agreement or your employment handbook we will automatically update them and send you your up-to-date employment documents. Knowing that your employment documents are up-to-date gives you peace of mind.

Our e-mail newsletter keeps you informed of developments that may affect either your employment contract or employment handbook and includes news items about company cars and their use.

We also provide you with telephone HR support to help you implement your employment contract and employment procedures including those relating to company cars. Legal advice on your employment documents and your company vehicles is available from our 24 hour advice line.