Removal of company car benefit

[TMcGRed]

Hi, my employer provided me with a company car approx 5 years ago now and this has worked fine until recently.
The company was fully bought out by one of the holding companies and all employees had to go through a realignment of T&C's. As part of this everyone was placed into a band / grade. Under the new terms the grade I was put into (grade 3) was not then automatically allowed a company car (I am not the only one in this situation). Myself and other grade 3's (or below) were then told that our cars had to be handed back at the end of the term these were on (usually 3yr contract hire) with little or no compensation. I have manged to be placed on an essential user scheme, so can get a smaller car once my current one goes back, but this scheme can be revoked if I do not do 10,000 business miles a year, which I do no where near!!
What I want to know is are my employers allowed to do this? I am considering taking action but want to be sure before I rock the boat. Any help would be greatly appreciated.

[Skyline D]

I would think they almost certainly are allowed to do this but buildersmate or one of the others will know better.

Presumably if you are required to do mileage for your work but they aren't going to provide a car for it then you will be entitled to claim a mileage allowance for miles done in your own vehicle? If the answer to that is "no" then I suspect they can't make you do the business travel in your own car.

[buildersmate]

Your employer is changing the terms of your employment, and (apparently) giving you the necessary contractual notice that it wishes to do this.
There is nothing unlawful about it as a principle.
You could pursue a grievance using the appropriate procedure if you think you've been treated unfairly.

[factor-fiction]

Yes, as long as appropriate procedures were followed regarding notice, etc.
Was there any consulation process- were the staff or union asked to agree to the changes?

[sara3]

I think it's the same rules for us, you have to do about 10k business miles to be considered for a "company" car.

[Twenty20]

Most people don't see the company car as much of a benefit these days because of the tax implications - and this would certainly be true if you're not doing many business miles. If you need to travel on business infrequently it's often much better to be paid a mileage allowance or to use a pool car.

[TMcGRed]

Thanks for all the responses so far. I've been doing a bit of research all over and am getting some conflictin gadvice.
The comp car is a great perk for me (am driving a new S-Max and it only costs me about �70-�75 a month in tax). Unions were consulted and they agreed to this - but it doesn't make it lawful.
Other feedback I've had is this could be breach of contract as a comp car is deemed to be part of your renumeration. Surely your employer cannot redcue your salary, whatever process they follow. More feedback is welcome - thanks to all again! :)

[factor-fiction]

Hi,

I don't think it's a breach of contract if you have been given the required notice and issued with a new contract.

When the 'agreement' was made to remove the company car were any other changes made to contractual terms- eg changes to holidays, working hours? And you say you were put into a new grade- did it have a diferent pay band to your old grade With changes like this it can be difficult to prove whether an individual's overall terms have been reduced.

Buildersmate is the expert here on these matters and can probably clarify your latest points

[buildersmate]

Factor is right. It isn't a breach of contract because you have an employment contract that may be terminated by either side, giving appropriate notice. Some folks seem to believe that, once given, renumeration cannot be taken away again.
However there has to be consultation and a fair process.

[TMcGRed]

Our terms were TUPE'd when we moved over. Doesn't this mean everything is protected?