Withdrawal of company car

[EverybodysSnowyEyed]

So you have a company car that you use to get to your difficult to access work site (no public transport and too far to walk or bike) - everyone gets a company car

new boss has decided he wants to scrap them - won't be replacing once the leases are up and no cash alternative

is this allowed? assume it is in the contract

(This represents quite a significant salary cut plus a huge upcoming expense to replace the car)

Any help gratefully received!

I think they are a perk unless you need them for work. Getting to work would not be included.

Are they in your contract?

Thanks for replying

I am surprised they can just withdraw it like that. If it is in the contract isn't it part of the whole package? Certainly was factored in to the decision to take the job as pay isn't competitive but the the car pushed it over. Of course in this market that's all changed

My understanding is that if it's part of your contract they can't take it away without some consultation . But I've no official HR knowledge.

Thanks HJ

Had a similar issue ( though was an allowance rather than a car) last year. Didn't come out well and union are still fighting it though we've not a lot of hope. We are actually contracted to use a car at work too

sorry to hear that. hope your union gets somewhere

My firm is based across six offices and we have to have access to a car to travel between then as required. We get mileage but that's all.

Chub - my question was more about removing a benefit that already exists

Think the getting to and from work is a different issue from needing a car to fulfill your duties. Where I work we've recently reviewed company cars - needing a car to get to and from work didn't count (it's up to employee to make sure the can get to and from work base), driving less than about 5,000 miles per year then just go to regular user status (so lump sum each year and per mileage rate for own car) and over 5,000 you'd still get company car. We've put other things in place too - including using lease cars for longish journeys and use of pool cars.

If it's not part of your remuneration in your contract then it's unlikely you are entitled to a company car

But it is in the contract

In theory they cannot unilaterally change your contract, and they need your agreement. that's quite clear in HR law.

In practice, they can announce changes to terms and conditions and - if people object - they can completely tear up the old contracts, and offer you new contracts with the new rubbish terms. If you decline to accept the new terms then you can be made redundant. They have to follow the normal redundancy process in order to do this.

The thing to do is go back to company in writing to ask them to explain clearly their reasons for the change and to ask when they expect to hold consultation about this change. Ask them also to explain how they will be recompensing staff for removing a contractual benefit, given that material changes to contracts can only be made with the agreement of staff.

We moved from company cars to car allowances, and it works out cheaper. You must be getting hammered by tax if you just use it to go to and from work?

Thanks for the advice

The staff reps are completely useless and just seem to roll over and have their tummy tickled.

Funnily enough, senior management are excluded from the change