If employees drive as part of their job, whether in their own vehicle or a company vehicle, it’s important to know that complying with the law is not just about dealing with issues, like insurance and maintenance. There are various employment law issues that ought to be covered too. Pauline Hughes of Just Employment Law highlights the main issues motor factors should be thinking about.
If an employee is entitled to a company car, it is advisable that this fact and any conditions about use of the car are set out in their employment contract. Likewise, for anyone who must be able to drive in order to do their job properly, it is important to state in the contract that loss of their driving licence might lead to their dismissal (if no jobs that don’t involve driving are available as an alternative).
It is also a good idea to have a Driving for Work Policy in a business, setting out rules for use of company vehicles, reimbursement of fuel costs, insurance, safe driving etc. Some employers will want to go further and have specific rules about withdrawal of a company vehicle if the employee has too many accidents or convictions.
Driving licence
An employer is entitled to know the status of their employee’s driving licence if they need to drive on company business. The most efficient way to check an employee’s licence status nowadays is for the employee to produce a check code to allow the employer access to their driving record on gov.uk – visit www.rdr.link/FG003
Trackers
Many employers will install trackers and other devices to monitor the location of their vehicles and the speed they’re being driven. If factors do use trackers in their company vehicles, it is vital that they issue employees with a Privacy Notice under the Data Protection Act, specifying the purposes for which they will use the data recorded on the device(s); for instance, if tracker information will be used to discipline employees for speeding or careless driving, employees need to know in advance that this might be done.
Family-friendly leave
As personal use of a company car is classed as a non-monetary benefit, employees on maternity, paternity or adoption leave will normally be entitled to keep their vehicle during periods of such family-friendly leave. It’s advisable to discuss with employees whether they do want to keep their vehicle during periods of extended leave, as they will still need to pay tax on the benefit while their earnings are likely to be reduced.
Termination of employment
If an employee who has a company car is paid in lieu of notice when their employment ends, it’s important to understand that they will normally be entitled to a payment in lieu of the value of the benefit they are losing if their company vehicle has to be returned right away. Some employers will avoid this problem by writing into employment contracts that a payment in lieu of notice will cover basic salary only, and there is no right to a payment in lieu of benefits.
Who are Just Employment Law?
Just Employment Law supports employers throughout the UK to have compliant contracts, policies and procedures. Our annual retainer service provides employers with the certainty of unlimited employment law support and advice, delivered by specialist solicitors, for a fixed annual fee.
