Donate SIGN UP

Withdrawal of employment benefits (company car)

Avatar Image
Limeycat | 20:03 Tue 02nd Nov 2010 | Civil
5 Answers
I'm fortunate to have a "job status" company car which is leased for me by my employer and ordinarily is replaced annually.

Following a recent merger, my employer is looking at consolidating terms and conditions for all staff and I'm guessing that, in the future at my level of management, I will no longer qualify for a car (if indeed such a benefit is available to anyone). However, my employer hasn't yet started any kind of formal consultation process and I don't think that this will happen until after my current car is due to be replaced in January/February.

So, questions:
- what period of consultation must my employer undertake over any proposed changes to T and Cs?
- is my employer obligated to replace my car, based on my current terms and conditions, if the consultation hasn't started prior to renewal? What if consultation has started?
- is my employer obligated to compensate me for the loss of my benefit if my job hasn't otherwise changed? As there's a possibility of reorganisation happening in a similar timescale, what if my job HAS changed (i'm assuming the role will get smaller rather than grow!).

Thanks in anticipation!
Gravatar

Answers

1 to 5 of 5rss feed

Best Answer

No best answer has yet been selected by Limeycat. Once a best answer has been selected, it will be shown here.

For more on marking an answer as the "Best Answer", please visit our FAQ.
Interesting. So you don't actually need it to do your job? If so you will probably be much better off tax wise without it as a benefit and your employer may use this angle re compensation.
Question Author
Correct, it's "job status" rather than "job need". I get mileage when on company business but not for personal mileage. Although as I trade down to a smaller car than I'm entitled to, i do get about £70 per month payment in recognition of that.

the tax angle completely baffles me, TBH I've no idea whether I'd be better off or not!
The car is part of your benefits package.
If the employer wishes to do this it needs to consult, then having done so, give you at least your contractual notice period of any proposed change to your T&Cs - including the seemingly inevitable reduction in your benefits package.
There is no minimum period for the consultation.
It isn't obliged to replace your expiring leased car with a new one - indeed I suspect that you will find that it farms you off with a secondhand pool car if the lease on your existing one runs out before the process for me is complete - that's what I'd do if I was the employer.

But as Count points out, you may well be better off with company mileage in your own car at 40p per mile for the first 10000 miles.
I agree with the answers so far but would also find out If your car is linked to your level rather than need then I would have thought it was calculated within your pay band ie: £30,000 + car + healthcare (or whatever) = £38,000. Take the car out and you may well be better off tax wise but what effect does that have on your overall pay package?
It's worth checking the details of the company car provision scheme. I think it's quite likely that the terms give the company the right to expect you retain your car beyond the renewal date.

1 to 5 of 5rss feed

Do you know the answer?

Withdrawal of employment benefits (company car)

Answer Question >>