Company car policy

09 July 2019

You may want to consider offering a company car to your employees, but what will the process involve? Our guide covers the essential information so you can make an informed decision whether it’s the right policy for your business. In this guide, we explain what you need to consider before picking a vehicle.

Cars for employees

Company cars are a popular perk for employees. They can also be a good way for businesses to reward their staff, or tempt them to apply for roles. In Ireland, the present law for taxing cars specifically aims to encourage car manufacturers to produce greener vehicles. So, by choosing a fuel-efficient car, you stand to save money. That makes a company car policy for small businesses an attractive proposition. For your company car policy, employee handbook guidelines will explain to staff how they can use the vehicle.

Company car policy example

If you want to introduce a corporate car policy for your workforce, then you can refer to this section to help set up your procedures. A car policy for employees in a company allows them to understand what purposes they can use the vehicle for. From your side, how do you go about setting up your expectations? Well, these policies tend to be lengthy as they have to cover so many important procedures. But a general overview of each section would be:
  • Eligibility to drive a company car: Explains who can claim the perk, such as employees with a valid driver’s license.
  • Withdrawal of employee rights: Reasons why you can take the company car away from the staff member (such as due to drink driving).
  • Driver responsibilities: Explain what you expect from your employees, such as driving in a safe and responsible manner.
  • Safety guidelines: Establish the policies that you want everyone to follow, which will include the likes of seatbelt wearing.
  • Traffic offences: For example, specify that speeding and dangerous driving is not acceptable.
  • Personal use: It’s important to explain to your staff how they can use the vehicle in their spare time.
  • Car maintenance: Describe what’s required of the employee to keep the vehicle in roadworthy condition.
  • Driving outside of Ireland: If a trip involves leaving the country, then explain what the staff member will need to do when driving abroad.
  • Insurance: Explain the extent of the insurance cover on the vehicle. For example, this may include the stipulation only the employee can drive their vehicle.
  • Car park policy: Workplace guidelines on how to use the car park, such as designated spaces for staff members.
Those are just some of the company provided car policy points you should cover. However, there is one particularly important point to remember.

Company car accident procedures

Of course, there may come a point when your employee has an accident. For this car policy, company procedures should make it clear what your employee will need to do. You can establish your company vehicle damage policy in your document, such as what an employee may need to pay if they’re responsible for a crash. But this section can also address any fears your staff may have. Your company car accident procedures will list details such as:
  • Regardless of the nature of the crash, stopping to exchange details: names, addresses, contact numbers etc.
  • Calling the police immediately after an accident if it’s a serious incident.
  • Requesting emergency services if there’s an injury.
Your company vehicle damage policy can also explain what might be ahead in terms of potential legal procedures if it’s a serious incident.

We’re here to help

For anything related to your business perks and employee privileges relating to your company car use policy, get in touch with us for immediate help: 1890 252 923.

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