Custom & Practice Law

[JS2710]

I have had a company car for the last 11 years, the first 4 of which were in a sales role. I was told that I would be allowed to keep my car in my new role rather than buy me out of the benefit & I would still need the car for business use but to a lesser extent. I have since had a new car which is coming to the end of its lifetime. My employer is now telling me that it was a "mistake" to allow me to keep the car(s) as part of my package for the last 7 years & have given me 5 weeks to hand it back. Under the customs & practise law, should I be allowed to keep this benefit or the cash alternative in my salary?

[boxtops]

Precedent under custom and practice suggests that if the standard has been set, it should be allowed to continue - but you need to seek advice on it. Do you have an HR department, is there a policy about this?

Are you in Scotland (due to the law being different there)?

[buildersmate]

It is a straightforward case of the employer wishing to change the terms of an employment contract. Need to consult with you, listen to your alternatives. Possible for the employer to change the contract by giving you contractual notice.
Information for you to read about this here.
http://www.direct.gov...onditions/DG_10037116

[boxtops]

thanks BM, that's a helpful link.

[factor-fiction]

Are you asking whether you have a right to continue to demand a car rather than accept a cash alternative?
If so, I think the answer is probably 'no'. The car belongs to the company. As long as they give propoer notice and an appropriate cash alternative.
Also, if they accidentally 'overpaid' you they have a right to recalam it- but in the circumstances I very much doubt they wil- and to give notice to rectify teh position.
I say this because both things have happened to me

[JS2710]

Thanks guys for your replies. Factor30 - I haven't been offered a cash alternative, just been advised to hand the car back in 5 weeks. All, am I right in thinking that as I'm on a 3 month notice period, they are in breach of contact by giving me 5 weeks rather than giving me contractural notice? Just to add to this, they recently amended my contract when I changed working hours and in this included a section named "car" stating "this benefit will remain unchanged". Surely by including this they are admitting that the car is part of my contract? This is being forced by my HR dept so I feel completely unsupported at work :(

[factor-fiction]

I'm wondering whether theya re not offering a cash alternative because the car was in effect an accidental overpayment of salary, and now the error has been picked up they are rectifying it.
Buildersmate knows more about these things than I do but it might be worth asking them to set out in writing why they want the car back, and on what basis they are not offering some form of compensation, and you should also point out that your notice period is 13 weeks not 5. However I'm not sure that the full notice period needs to be given for reducing pay after an overpayment.
Will they still expect you to travel on business after your car is taken off you?