Company car

Professional equipment

The employer must provide the employee with all the equipment necessary to perform his work. When the employee has to travel regularly to clients or suppliers, the employer may provide a company car. The question then arises as to the payment of the vehicle's maintenance costs.

Costs

The company car incurs high costs such as gas, oil, services and repairs. When purchasing a company car, the down payment and leasing can be quite substantial.

Who is responsible for paying these costs? Does this also apply if the employer and employee have agreed otherwise? What happens if the employee uses the company car for private travel or to get to his usual place of work? Certain information must be mentioned in the salary certificate.

Damage/Theft/Accident

Theft of a company vehicle or an accident can result in significant financial damage. In certain situations, the employee will be held responsible and will have to reimburse the costs incurred.

The same applies if the employee commits an offence under the Road Traffic Act. In addition, the employee may be dismissed in special cases.

Return

When the employment relationship ends, the question arises as to the return of the company car, especially if the employee was entitled to use it for private travel.

Can the employer demand the immediate return of the company car when the employee is released from work? Or does the employee have a right to continue to use it during the leave period? 

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1 Mar, 2010 byMarianne Favre Moreillon