company taking car allowance away

company taking car allowance away

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Discussion

norwichbrian

Original Poster:

19 posts

120 months

Sunday 20th April 2014
quotequote all
The company I work for recently decided that anyone on car allowance (is me) must have a car less than seven years old or should swap to a company car. As I do around 36k miles a year a new car is out of the question as a new car would be worth virtually nil after 3 years. I advised my boss that I would opt to have a company car but he said that due to my job role (field engineer) company cars were no longer being issued and that I would have to have a company van, Vivaro. I put the case that my contract clearly states company car or allowance, he can see no problem in me taking a van. I explained that I would therefore be out of pocket and asked for an increase in salary to compensate - flat refusal. A van is of no use to a family, 2 adults and 2 kids. After an hour of him giving me the company gospel of no cars I said that I would remain on allowance and get a newer car but then he says that as cars are no longer considered suitable my car allowance would be withdrawn anyway. Any advice please?

vescaegg

25,544 posts

167 months

Sunday 20th April 2014
quotequote all
So they are taking away your allowance and won't give you a company car?

Id say look for a new job?

Muzzer79

9,961 posts

187 months

Sunday 20th April 2014
quotequote all
A company vehicle is just that- a tool for doing your job

If the company therefore deem that a van is more suitable then, unless you have a specific type of vehicle mentioned in your contract, you would need to live with it IMO

It is a perk in that it's also your family car, but that's of no concern to the company

I'd negotiate a bit more cash possibly but expect to suck it up

hman

7,487 posts

194 months

Sunday 20th April 2014
quotequote all
Changes in your contract have to be agreed by both parties. Of course if you don't agree to the changes then you can terminate the contract.

Speak to HR about this, maybe mention a feeling I constructive dismissal and see what happens from there.

Ultimately it might be worth looking elsewhere as a company that hell bent on implimenting health and safety (old cars = unsafe) and environmental (old cars = more pollution) protocols which are meaningless is surely not a company worth working for.

I have been through this before, I left.

davepoth

29,395 posts

199 months

Sunday 20th April 2014
quotequote all
Makes sense to me. The company gave you an allowance to spend on a vehicle so that you wouldn't have to use a personal car for doing the high miles required for your job, not to spend on a vehicle to cart your family around in.

You aren't going to be out of pocket - because the allowance wasn't supposed to be going into your pocket in the first place.

If it really is upsetting you, tell your boss that this change is seriously making you consider looking for another job, but don't be surprised if he says "Fine."

Terminator X

15,077 posts

204 months

Sunday 20th April 2014
quotequote all
I'd start by saying you don't agree to change your contract and take it from there. So annoys me when companies think they can just boss people around.

TX.

Edit - why not get a 6 year old car and just swap it every year?

norwichbrian

Original Poster:

19 posts

120 months

Sunday 20th April 2014
quotequote all
Hi folks, tried the option of just getting a car which is less than 7 but the boss says that no matter how old (or young) my chosen car is that if he deems it as unsuitable ( ie it is not a van) then they can stop the car allowance. My point is that I should have the option, as per my contract of either allowance or CAR. If my role, and that of other engineers, has changed so much then surely the company should be giving us new TS&cs. when I joined the company, 18 years ago, the car allowance was an incentive but now the company just see it as a requirement to do the job.

XTR2Turbo

1,533 posts

231 months

Sunday 20th April 2014
quotequote all
Looking at BIK rate increases on company cars the van may start to look more attractive

Terminator X

15,077 posts

204 months

Sunday 20th April 2014
quotequote all
As others have said your contract can't be changed without your authority. Stick to your guns for a while to see what happens. Eventually though it may lead to you leaving so imho keep an eye on the job market just in case or if you don't want to leave you may end up having to suck it up.

TX.

norwichbrian

Original Poster:

19 posts

120 months

Sunday 20th April 2014
quotequote all
vescaegg said:
So they are taking away your allowance and won't give you a company car?

Id say look for a new job?
Pushing 60 and with a disabled wife who cannot get into a van, not ideal position to Get another job.

norwichbrian

Original Poster:

19 posts

120 months

Sunday 20th April 2014
quotequote all
Muzzer79 said:
A company vehicle is just that- a tool for doing your job

If the company therefore deem that a van is more suitable then, unless you have a specific type of vehicle mentioned in your contract, you would need to live with it IMO

It is a perk in that it's also your family car, but that's of no concern to the company

I'd negotiate a bit more cash possibly but expect to suck it up
Could not agree more, but the company has changed the role.

UpTheIron

3,996 posts

268 months

Sunday 20th April 2014
quotequote all
6 year old Mondeo estate?

Do you need a van to do your job?

Or take the van and keep your current car.

UpTheIron

3,996 posts

268 months

Sunday 20th April 2014
quotequote all
norwichbrian said:
Could not agree more, but the company has changed the role.
What have they changed?

norwichbrian

Original Poster:

19 posts

120 months

Sunday 20th April 2014
quotequote all
UpTheIron said:
hat have they changed?
Having run a Mondeo sized estate for 17 years (cavalier, merc 300, primera, volvo v70, citroen c5, maxda 6) they now require us to have a van to carry ladders and more spares.

My point is that they have changed the role, not the job description or contract.

norwichbrian

Original Poster:

19 posts

120 months

Sunday 20th April 2014
quotequote all
UpTheIron said:
6 year old Mondeo estate?

Do you need a van to do your job?

Or take the van and keep your current car.
Happy to take the van but fail to see why I should be 3.6k short in pay when it is the company that has changed the role. If they want me to use a van then fine, but my contract has been that I get car or allowance, not a van. Car allowance was incentive to join, for first six years did not even need as car, used the bus.

Terminator X

15,077 posts

204 months

Sunday 20th April 2014
quotequote all
If you don't want to rock the boat Brian due to age etc perhaps just accept the van and keep the car? Time to realize though that loyalty means nowt these days ...

TX.

R1 Indy

4,382 posts

183 months

Sunday 20th April 2014
quotequote all
Why not take the company van (classed for business use only so no BIK), then buy a car for your family?

theboss

6,913 posts

219 months

Sunday 20th April 2014
quotequote all
OP does anything prevent you from keeping your current car for family use, and taking the van for business as intended by the employer? Do you foresee yourself being considerably worse off financially, or is it more the case that you'd rather spend the time/miles in your own car and get reimbursed for it? (I know I would...)

Also are they giving you a mileage allowance at present?

dudleybloke

19,821 posts

186 months

Sunday 20th April 2014
quotequote all
R1 Indy said:
Why not take the company van (classed for business use only so no BIK), then buy a car for your family?
this.
and leave the van at work.

theboss

6,913 posts

219 months

Sunday 20th April 2014
quotequote all
dudleybloke said:
R1 Indy said:
Why not take the company van (classed for business use only so no BIK), then buy a car for your family?
this.
and leave the van at work.
On the other hand... If they are paying for fuel... Why not let them bear any ordinary commuting costs, providing the OP has room to park both at home.