Employment law question about car allowance

[karlwales]

15 years ago I joined a company. 2 years after joining I was awarded a car allowance as a perk and have enjoyed that car allowance for the last 13 years. It was awarded to attract new members to the role. Now, 13 years later the company has said they no longer are going to pay this car allowance. They say the allowance was always given to me as a "job need" and that I do not cover 9,700 business miles so I do not qualify any more. I argue that I have never covered anywhere near 9,700 miles (normally just a few hundred miles per year) and the car has always been a perk. Would this qualify entitlment under an "implied term of contract"? Hoping someone can help!

[dothawkes31]

Were you given a revised contract 13 years ago that included the car and i so did it stipulate that the terms and conditions could be amended at any time with notice?

[karlwales]

Hi Dot. There has been no revised contract. I was simply told by a manager that I would be given a car/car allowance. There is no mention of a car allowance in my contract.

[dothawkes31]

No I don't know but buklders mate might, but then it's best to gather the facts eddie, has the car been replaced several times over the years? I assume it has. At any time the car could have been included in yoru contract.

[buildersmate]

Then it sounds very much that it would be regarded as an implied term then. You are using the technical lingo, so you obviously understand the term and its implication.
I would go and assert in a firm but robust way to HR and see what happens - they might back down.
As you also probably know, T&Cs can be varied following consultation and given the necessary contractual notice period (which for you is likely to be 12 weeks - longer if your notice period is even longer than statutory).

[karlwales]

I have had several company cars over the 13 years with the understanding it has never been a "job need" car but a perk.UNfortunatley HR are refuting this and are not being very helpful. They insist it has always been a job need despite ther being no documentation saying this. I plan to go through a grievance process but I guess I need to take great care how I present my case and word my case very carefully. I may even try approaching a union and/or acas. Final thoughts would be to employ an expert in employment law ... I suppose that will cost me!

[karlwales]

Perk is an option of receiving a company car or select the car allowance. I opted for the car but in the last few years I get the car allowance instead.

[buildersmate]

Eddie's point is not relevant - it's a benefit that you have been provided with and unless it was clearly tied to something writtewn down that said 'you get benefit X for doing Y' (namely car as a job need), then I reckon you are on strong grounds.
By all means use the grievance procedure, but just make sure you know where you want to go with this at the end of the line. If the grievance procedure fails (to your benefit), I believe you can take the matter to ACAS for a 'judgement' (not sure on this point - slowly getting out of touch for what ACAS can / cannot do), or you can resign and try and claim constructive dismissal (not recommending it - just pointing out options), or you can just lump it.
At the end of the day you have to take into account your long-term relationship with your employer, the value of kicking up a stink over this versus the potential to be seen as a perceived 'trouble-maker (not my belief, you understand just the view the management team might take), what your external prospects are.
In most of these situations, the company will get its wicked way over changes to T&Cs (mark my words and see what the outcome of the pathetic attempt by Unite to prevent BA) and it often boils down to the view taken by the company on the cost and/or the adverse publicity it may attract - externally or in the workplace.

[karlwales]

Hi buildersMate. Many thanks for the advice. The company in question is huge and my immediate manager wants to help as far as possible. I have just discovered a document "Variation to contract of employment" which I thought I had lost. There it specifically states that I have a car either because I have travel more than 10,000 business miles or its a grade entitlement. Since I have never travelled 10,000 business miles then it must be a grade entitlement. That being the case it not a "Job Need" car which the company is trying to tell me it is. I think I'll give ACAS a call - I don't think it will do any harm. Also, it is my immediate manager who advises me to pursue the leagl route if necessary. I'm hoping the company will buckle under threat of the legal process (I won't hold my breath though!).

[karlwales]

By the way, does anyone know how I maight go about finding lawyer who has expertise in dealing with such matters?

[buildersmate]

Agreed that therre is no harm in talking to ACAS for advice.
The way I would do it is to get the company to put in writing the proposed withdrawal of the car allowance and ask that the reasons be stated 'you no longer have a job need, Mr Karl', then hit them with a copy of your letter 'variation of contract' together with your letter raising a grievance.
A copy of that letter should be in your personnel file, of courses, but may not be, or HR may not have discovered it for looking.
That way, they have been made to look complete idiots, because you clearly have the car as a grade entitlement, and with any luck they will withdraw the proposed change in T&cs.
It is still possible that the company to seek to withdraw the car from employees having it as a grade entitlement, but the company can't single you out for such special treatment.

[R1Geezer]

If it's a huge firm It'll say somewhere that all perks etc are at the company's descretion. It'll probably be in legalese but it'll be there.

I work for a huge international bank and various perks have been removed/amended over the years and they are always covered in the contract. If you read the small print of your contract you'll probably find they can sell you into slavery if they like!