Company vehicle vs vehicle allowance wrangle ...help?

[Quickmoose]

Started work for a company...one of 5 in a company of 300
Each must provide own vehicle.... and get vehicle allowance
Each took out finance to fund said vehicle.
Now.... things have changed, everyone must have company vehicle.
Those with own vehicle and outstanding finance...tough

Can they do that?

[StevieBee]

I think they can.

The Job Description and contract of employment will have stated the requirement for you to make available your own car for business use for which you would be compensated for; an arrangement you would have been happy with at the time. How you acquired your car is of no interest to the company (other than to ensure it was legally acquired). If they compensated you for any loss on the finance arrangement, how would that square with those that had a car they owned outright?

The money they paid you for using your car on business would have included fuel, wear and tear, depreciation...basically all costs proportional to the time you used your car for business. They would thus claim that they have already paid you an amount which compensates for any loss.

The company is free to change things as they see fit though on things like this, it's normally following a period of consultation so use that to discuss your situation but any remedy would be done on moral grounds rather than legal.

Edited by StevieBee on Tuesday 11th February 17:17

[Quickmoose]

Thanks....
The recompense issue with regards to those without outstanding finance did occur to me...
As did the fact that some chose cheap 2nd hand cars and others brand new lease deals...

Meeting with HR tomorrow so we’ll see...

[softtop]

the company should have said at the start, how long the agreement would last.

[eltawater]

It should be pointed out to HR at this meeting that not only will those on finance lease deals etc be subject to penalty clauses for termination etc but at the same time they'll now be on the hook for BIK on the new company vehicles. The sensible way forward would be for those on finance deals to be allowed to gradually transfer onto company vehicles as they reach the end of their terms.

Natural transition and staff turnover will mean that it all works out in the end.

[Sheepshanks]

StevieBee said:

I think they can.

The Job Description and contract of employment will have stated the requirement for you to make available your own car for business use for which you would be compensated for;

If that is in the contract then they can't just change it unless he agrees.

Of course they could just sack him (if he's been there less than two years) instead.

[StevieBee]

Sheepshanks said:

StevieBee said:

I think they can.

The Job Description and contract of employment will have stated the requirement for you to make available your own car for business use for which you would be compensated for;

If that is in the contract then they can't just change it unless he agrees.

Of course they could just sack him (if he's been there less than two years) instead.

It depends on the conditions associated with the contracted requirements.

If the position demands the use of a vehicle for use on company business then the company will set out in the contract how that requirement is to be met. If HR have done their job correctly then there will be included, provision that permits the company to change that arrangement at anytime with a time line for any change stated.

If they haven't done their job correctly then forcing a change is indeed, a little more tricky.

[xjay1337]

Quickmoose said:

Started work for a company...one of 5 in a company of 300
Each must provide own vehicle.... and get vehicle allowance
Each took out finance to fund said vehicle.
Now.... things have changed, everyone must have company vehicle.
Those with own vehicle and outstanding finance...tough

Can they do that?

Can they do that?

Yes.

Is it pretty ish?

Yes.