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A company car scheme is where a company offers its employees a vehicle for personal and business use. Company cars are usually offered to those who need to drive as a requirement of their job or to other employees as an additional work perk.
The company car policy must outline the duties of the employee while using a company vehicle. These guidelines include having a valid driver's licence, driving safely and responsibly, respecting traffic laws and other road users, and reporting problems or damages to the company cars promptly.
If a company car is supplied purely for business use, it can be withdrawn during periods when the employee is not at work, for example during holidays, a period of garden leave or paid suspension.
If a company car is to be provided as part of the position, this should be clearly confirmed in the written employment contract as an express term. Some businesses have separate vehicle policies or staff handbooks with specific sections relating to company cars.
By law, an employment contract must contain the following contractual clauses, known as 'express terms':Name and address of employer and employee.Start date.Date contract will apply from.Continuous services date.When the contract is expected to end if temporary or fixed term.Job title or a brief description of duties.More items...?