The company car policy is an important issue for companies that provide their employees with company cars. A well-thought-out company car policy creates clarity and transparency for all parties involved, regulates the use and maintenance of company cars and contributes to employee satisfaction.In this blog post, we highlight the most important aspects of a company car policy and provide practical tips on what companies should look out for when drawing up such a policy.
Contents
What is a company car regulation?
A company car policy, often also referred to as a car policy, is an agreement between a company and its employees. It regulates the conditions under which company cars may be used. Such a set of rules can include various aspects, such as the authorization to use a company car, the term of the leasing contract, the equipment of the company car and the use of the company car during leisure time.
Why is a company car policy important in the vehicle fleet?
A well thought-out company car policy is important for several reasons:
- Transparency: With a company car policy, companies create clear and transparent conditions for the use of company vehicles. Employees know exactly which rules and obligations apply. This avoids misunderstandings and ambiguities.
- Cost control: Companies use a company car policy to determine which vehicle models and brands may be selected as company cars. This allows you to better control and optimize the costs of purchase, operation and maintenance. A company car policy can also regulate the extent to which employees must contribute to certain costs.
- Legal protection: A company car policy protects companies and employees from legal problems because it specifies who is liable in the event of an accident or damage.
- Sustainability: More and more companies are taking environmental aspects into account in their company scales regulations, for example by promoting the use of environmentally friendly vehicles and defining measures to reduce CO2 emissions.
- Employee satisfaction: For many employees, a company car is an attractive benefit. If its use is clearly regulated, this can contribute to increasing employee satisfaction.
What is important to consider in a company car arrangement?
When drawing up a company car policy for the vehicle fleet, there are various points that fleet management needs to pay attention to. In this way, a sensible and effective company car policy can be created for everyone involved. You should take these contents into account:
- Authorization for use: The company car policy should clearly define which employees are entitled to a company car. This can depend on the position, area of activity or area of responsibility, for example.
- Use of the vehicle: The use of the vehicle must be clearly regulated in the company car policy in order to avoid misunderstandings and conflicts with fleet management. Here it is important to make clear the specifications for the private use of the vehicle as well as the use for official purposes.
- Costs: The costs for the use of company cars should be shared transparently and fairly. The taxation of company cars should also be considered here.
- Vehicle equipment: The equipment of the vehicles should also be specified in the company car regulations. For example, are certain extras prohibited? Environmentally friendly technologies, such as e-vehicles, can also be given preference by the fleet management.
- Employee obligations: The obligations associated with the use of company cars should also be part of the company car policy. This may include cleaning the vehicle as well as regular maintenance and repairs.
- Damage regulation: If damage occurs to the vehicle, a company car policy regulates how it is to be handled and who is liable for damage.
- Sanctions: If employees do not comply with the provisions of the company car policy, they may be subject to sanctions such as a warning or dismissal.
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Company car regulation and electric mobility in the vehicle fleet
How does the company car scheme for electric vehicles work?
A company car regulation for electric vehicles differs from a regulation for vehicles with a conventional combustion engine in a number of respects. You should therefore consider the following aspects, among others:
- Charging infrastructure: How is the use of charging points at the workplace regulated? Or does the company support the installation of a wallbox at home?
- Costs: How are electricity costs for charging the vehicle at home, at work or at public charging stations billed and, if applicable, reimbursed?
- Maintenance and care: Are there any specifications regarding the special maintenance requirements and intervals for electric vehicles?
- Incentives and benefits: Are incentive programs planned to promote the use of electric vehicles, such as bonus programs or additional benefits?
- Liability: Who is liable for damage to the vehicle or the charging infrastructure, both at work and at home?
What do I need to bear in mind with charging stations and the billing of electricity costs?
Another question regarding company car regulations for electric vehicles in the fleet is where the driver can charge the car and who pays for the costs. There are various options here. Fleet managers can offer their employees the opportunity to charge their company car at home or at a public charging station. Alternatively, they can also provide their own charging stations on the company premises.
There are different variants for the billing of electricity costs. One option is to issue a charging card that can be used to bill the charging station operator directly for the electricity costs. Another option is to charge a flat rate per kilometer. In this case, a fixed amount is charged for each kilometer driven to cover the electricity costs.
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FAQ on the company car directive in the fleet
What are the advantages of a company car policy for companies and employees?
A company car policy offers companies, fleet management and drivers a clear regulation for the use of company vehicles, which can avoid conflicts in the fleet. This is because everyone involved knows what is allowed and what is not. Furthermore, companies can promote the mobility of their employees through the use of company cars and thus increase their flexibility in day-to-day business.
How can it be ensured that the company car policy is regularly updated and adapted to legal requirements?
Schedule fixed review dates, for example annually or every six months, and define responsibilities for monitoring and updating the regulation. The expertise of external consultants who specialize in employment and tax law can provide valuable support here.
How do company car regulations work for electric cars?
The company car regulations for electric cars work in a similar way to those for vehicles with internal combustion engines. However, there are a few special features to bear in mind. For example, the charging infrastructure and the billing of electricity costs must be regulated. The taxation of electric company cars is also regulated differently to vehicles with combustion engines. Companies and employees should ensure that they take advantage of the tax benefits of electric company cars and meet all tax requirements.
Are employees allowed to use their company car for private purposes?
Yes, as a rule company cars can also be used for private purposes. However, the business use of the vehicle must be in the foreground and private use may only take place within reasonable limits. The company car policy must contain specific details on how often and to what extent the vehicle may be used for private purposes. It is also important that the employer properly taxes the private use of the company car and shows this on the pay slip.
