Company Car Policy
Provision of company car
Subject to your holding a full UK driving licence, the Company will provide you with a suitable car for use in the performance of your duties as set out in your statement of terms and conditions of employment.
The Company reserves the right to set a maximum lease value on company cars and/or to specify the make, model and colour of car that will be provided.
You have the car at the discretion of the Company, and it may change its rules and procedures on company cars at any time and from time to time.
The Company will pay for the MOT, licensing, insurance, routine maintenance, repair and servicing of the car in accordance with this policy, provided repairs, servicing or damage are not caused by negligence, misuse, driver error or default. Where applicable, limitations relating to tyre damage, punctures, recovery or maintenance agreements will apply.
Use of the car
Subject to such restrictions and upon such conditions (if any) as the Company may from time to time impose, you are entitled to use the car for your own private use.
Authorised Drivers
Only the employee assigned to the company vehicle, or other authorised Oakmans employees approved in advance by management, are permitted to drive company vehicles.
Spouses, partners, family members, friends, or any non-employees are strictly prohibited from driving company vehicles under any circumstances.
This restriction is in place due to insurance and compliance requirements relating to driver eligibility, including the monitoring of penalty points, driving disqualifications, drink driving offences, speeding offences, and general licence validity. The Company is unable to monitor or verify this information for individuals outside of the business.
Any unauthorised use of a company vehicle may invalidate the Company’s motor insurance policy.
In the event of an accident, incident, damage or insurance claim involving an unauthorised driver, the employee responsible for the vehicle may be held personally liable for the full value of the vehicle, repair costs, third-party damages, insurance excesses, and any associated costs incurred by the Company.
The company car may not be used for:
• Any business purposes other than those undertaken on behalf of the Company.
• Hire or reward (either goods or passengers).
• Driving tuition of any nature.
• Towing.
• Racing, pace making, rally driving or any other competitive event.
You must not permit the car to be taken out of Great Britain without the prior consent of your Line Manager.
You are not permitted to carry out any alterations to the car, nor are you permitted to fit car radios, stereo equipment, fog lamps, roof racks, tow bars or any other accessories.
Driving licence
You are required to be in possession of a full and valid UK driving licence at all times when you have a company car. You are required to provide a copy of your driving licence upon request by your Line Manager on commencing employment and on an annual basis thereafter. You should also provide a copy in the event of a change to the details on the licence.
Mileage allowance
If you use your own vehicle whilst driving on Company-related business, an allowance will be paid for approved journeys in line with the vehicle type used.
- Petrol vehicles: 19p per mile
- Electric vehicles: 7p per mile
These rates are within HM Revenue & Customs limits.
Mileage allowance cannot be claimed for journeys between home and office.
Income tax liability
You agree to bear any income tax liability as assessed by HM Revenue & Customs, in respect of the use of the car.
Roadworthiness and tax
The Company will retain all documents relating to the registration of the car.
You are responsible for ensuring the car has an MOT certificate (where required) and a valid licence (tax).
You are also responsible for ensuring the car is properly maintained and serviced. As stated above, the Company will bear the cost of repairs and service in relation to the car provided they are not caused by your negligence or default. Appointments for MOT testing and servicing must be made with a garage approved in advance by the Company. You are required to identify the service dates in line with the vehicle logbook and mileage record. You must produce the MOT certificate and vehicle logbook for inspection on request by your Line Manager.
You are responsible for the cleanliness and safekeeping of the car, together with its equipment and fittings. You must ensure that the car is maintained in good repair and in an efficient roadworthy condition, that it is serviced at the recommended intervals, that regular checks are made of tyre tread and pressure, lights, brakes, fuel, oil, water coolant, screen wash and battery, that it conforms with current road traffic legislation and that the provisions and conditions of the car insurance policy are observed and that such policy is not rendered void or voidable. The car must not be used if you know or suspect it may have a defect or in any other way is not roadworthy.
You must also take reasonable steps to ensure that the car is in a clean and presentable condition (both externally and internally) when used for business travel on the basis that it represents the Company to its clients, customers, suppliers and others.
Company Car Tyre Process
During Working Hours
If you experience a flat tyre or slow puncture during working hours and the vehicle remains roadworthy and safe to drive, you should bring the vehicle to the Harborne office where possible. If the vehicle cannot be safely driven, you must contact your Line Manager or, alternatively, Sian, Roman or Nick, so that arrangements can be discussed with the approved garage regarding recovery or repair. The Company approved garage located behind the Harborne office car park must be used wherever possible, as agreed pricing and repair arrangements are in place.
Out of Hours or Away From Harborne
If a tyre issue occurs outside of working hours, whilst away from the local area, or where the vehicle cannot safely be returned to and left at the Harborne office car park until the garage reopens, you will be responsible for arranging recovery or repair directly. Any associated recovery, emergency call-out or repair costs incurred outside of working hours will be at your own expense unless covered by your personal breakdown policy or maintenance agreement.
Maintenance Vehicles
The Company maintains a record of all company vehicles and identifies which vehicles include maintenance cover as part of their lease or funding agreement. Some vehicles include maintenance packages due to specific lease agreements or promotional offers in place at the time the vehicle was obtained.
Maintenance cover is limited to:
• General wear and tear
• Standard punctures
• Roadside recovery included within the maintenance agreement
Maintenance cover does not include:
• Kerbing damage
• Impact damage
• Tyre damage caused by driver negligence, misuse or driver error
Any damage falling outside of the maintenance agreement will be the responsibility of the driver and the associated costs may be recovered accordingly.
Breakdown and Recovery Responsibilities
Drivers are responsible for ensuring they have appropriate roadside recovery or breakdown cover in place at all times.
Employees are encouraged to check whether breakdown cover is included within their personal bank account or insurance arrangements. Alternatively, cover may be arranged privately through providers such as the AA, RAC or Green Flag.
Employees must not continue driving on completely flat or unusable tyres in an attempt to return the vehicle to the Harborne office or avoid recovery charges. Doing so may cause additional damage to tyres, alloys and wheel rims, and any associated repair costs will remain the responsibility of the driver.
Employees should also be aware that emergency recovery and call-out charges can be significant where no breakdown cover is in place.
The Company will not reimburse recovery or emergency call-out costs incurred outside of working hours unless otherwise agreed in advance by management.
Insurance
The car is insured on a fully comprehensive basis and the Company may seek to recoup any losses in the event of damage caused to the car by your negligence or wilful default. In addition, you are responsible for any excess which is required to be paid which is not recoverable from the insurance company should the car be involved in an accident, irrespective of the responsibility for the accident, subject to management discretion on a non-fault accident.
By signing this policy, you accept that the Company shall be entitled to deduct the cost of repair of any such damage and/or the cost of the insurance excess from your wages.
Fines and penalties
You are responsible for the payment of any fines or charges incurred because of a motoring offence committed whilst driving the car or whilst it is in your possession or under your control, including but not limited to parking, congestion and speeding fines including administration fees passed on by the lease company for administering the penalties and fines.
By signing this policy, you accept that the Company shall be entitled to deduct the cost of any such fines from your wages.
Reporting requirements
You must report to the Company forthwith:
• Any road traffic accident in which you may be involved whilst driving the car, whether that occurred on the Company’s business and regardless of fault.
• Vehicle defects or damage to the car.
• Any fixed penalty notices or any order of any court to endorse your driving licence or to disqualify you from holding a driving licence (including disqualification under the ‘totting up’ provisions), whether that consequence occurred whilst driving on the Company’s business.
• Any other event which results in your being ineligible to drive the car.
You must also immediately report any theft or loss of the car or reportable road traffic accident involving the car to the police.
Accidents and loss of a licence
You must report to a Line Manager any road traffic accident in which you are involved whilst driving your own vehicle on business travel, regardless of fault, as soon as possible after the accident.
You must also immediately report to a Line Manager any order of any court to disqualify you from holding a driving licence (or fixed penalty notice which results in disqualification under the ‘totting up’ provisions), whether that consequence occurred whilst driving your vehicle on Company-related business, together with any other event which results in you being ineligible to drive.
Carrying of passengers
You are prohibited from carrying personal passengers in your vehicle when using it for business travel.
However, you are permitted to carry business-related passengers in the vehicle when using it on Company-related business as the circumstances of the case dictate (such as fellow employees or clients/ customers). Where possible staff should share transport when attending the same client.
Mobile phones and driving
All employees are reminded that it is against Company policy, as well as being illegal, to use a mobile phone to make or receive telephone calls, send or read text or image/picture messages, send or receive facsimiles or to access the internet or e-mail whilst driving in the course of their employment with the Company and any breach of this instruction will result in disciplinary action.
If you do wish to use a mobile phone whilst driving in these circumstances, you must pull over and stop the car in a safe place and completely turn off the car’s engine before using the mobile phone.
Whilst driving in the course of your employment with the Company, you should make use of any voicemail or call-divert facility available on your mobile phone.
Employees are permitted to use hands-free devices to take mobile telephone calls whilst driving.
Safe standards of driving
When driving on Company-related business, you must drive within the law and abide by all requirements of road traffic law and the Highway Code, including ensuring that:
• Your vehicle is road taxed.
• Traffic signs and statutory speed limits are observed.
• The vehicle is sensibly parked and not in breach of any road traffic regulations.
You are responsible for your own safety, for any passengers or loads carried in the vehicle and for ensuring that the vehicle is safe to use.
When carrying passengers, ensure you comply with the vehicle manufacturer’s design specification. There should be enough seats for all passengers and only one person per seat. The driver and any passengers must wear seat belts on all journeys.
Prohibition of Drug or Drink Driving
Under no circumstances is it permissible to operate a company car while under the influence of alcohol, illegal drugs, or any substances (including prescription medication) that impair driving ability, regardless of any legal limits in force under UK or European law. This applies both during business hours and outside of business hours when using a company vehicle. For the avoidance of any doubt, the company operates a zero-tolerance stance in this respect.
The Company reserves the right to require employees to undergo drug or alcohol testing at any time if there is reasonable suspicion of impairment or violation of this policy. Refusal to comply with such testing will be treated as a disciplinary matter.
If there is evidence of drug or drink driving, or if impairment due to substances is suspected, the Company reserves the right to withdraw the company car with immediate effect.
Breaching this policy constitutes gross misconduct. Such violations may lead to disciplinary action, up to and including summary dismissal. This decision will be made in accordance with the Company’s disciplinary procedures.
In conjunction with this policy, you must read, understand and follow the Driving & Work Guidelines within the Company’s Health & Safety Policy.
Suspension from duty
In the event that the Company suspends you from the performance of your duties in accordance with the Company’s disciplinary procedures, you will be entitled to the continued use of the car during that period of suspension, unless the suspension relates to a serious motoring offence.
Breach of this policy
The Company reserves the right to take disciplinary action (up to and including summary dismissal) against any employee who breaches any provision of this policy.
Return of the car
You must promptly return or account for the car and deliver the keys to your Line Manager in the following circumstances:
• On the termination of your employment.
• If, for whatever reason, you cease to hold a valid and current licence to drive private motor cars
• During any period of extended leave granted by the Company.
• If you are convicted of a careless, reckless or dangerous driving offence, at the discretion of the Company
• If the car is involved in an excessive number of accidents whilst being used by you, as determined by the Company
• If you fail to observe the terms of this policy or fail to use the car in a reasonable and responsible manner, as determined by the Company
• If there is an unacceptable increase in the insurance premium for the car as a result of the number of penalty points endorsed on your driving licence, as determined by the Company.
If one of these applies, by signing this policy you accept that your failure to return or account for the car will entitle the Company to withhold any outstanding monies/wages due from the Company to you up to the value of the car.
