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Company Car vs Car Allowance when on Maternity leave

(4 Posts)
meggles Thu 15-Oct-09 19:36:27

I currently have a company car & private fuel benefit. However..... 2 new factors:

1- I'm re-negotiating my contract due to change of job role. I have been offered to keep company car or to buy a car and get car allowance.

2- My husband & I are trying for our first baby.

Questions:
1 - From the research I've read online, companies continue to give 'benefits' during Maternity leave - including health insurance & company car. However, is car allowance considered a benefit, or part of my wages (hence not paid during MA)?

Thanks in advance for any advice!

flowerybeanbag Thu 15-Oct-09 19:54:13

Have a read here meggles. Car allowances are still a bit up in the air as to whether they remain payable. You would certainly have a good argument to keep it during maternity leave, but you may decide that it's easier to avoid the hassle of a possible argument and just keep the car. Alternatively you could ask your employer for written confirmation of their position on car allowances (assuming their maternity policy is silent on the subject) before making your decision, although obviously you may not want to do that.

meggles Fri 16-Oct-09 09:25:04

flowerybeanbag - thanks so much for that link. i think i'll keep the car. avoid the hassle.

RibenaBerry Fri 16-Oct-09 10:56:39

Also, do check that your company car is actually a benefit (sounds like it is) and not just a way of enabling you to perform your duties. It's normally listed as a benefit in your contract.

If a car is provided just as a piece of 'equipment' then you could potentially be asked to leave it behind when you go on maternity leave, just like you could a laptop or a 'business miles only' fuel card. This is very rare, but does sometimes apply. In such a situation you would normally be someone who does masses of business miles and you would normally be expected to allow anyone else within the company to use the car if they needed to (e.g. if they needed to visit a client whilst you were in the office). As I said, very, very rare.

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