# Company Car - Maternity Leave



## Lobby (22 Jun 2007)

Hi, trying to settle a pub arguement, if you have a company car what happens when you go on maternity leave? Say you're working for a large firm, I guess there's no legal obligation but is there a general rule?


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## ClubMan (22 Jun 2007)

Presumably it depends on your contract of employment?


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## Lobby (22 Jun 2007)

It would, but is there a general position most firms take?

I can see it being a bit awkward having to return your car as you start maternity leave


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## CCOVICH (22 Jun 2007)

What would the company do with the car while the employee was on maternity leave?


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## ClubMan (22 Jun 2007)

Lobby said:


> It would, but is there a general position most firms take?


I doubt that it's possible/meaningful to generalise as it all depends on the company, contract, role etc.


> I can see it being a bit awkward having to return your car as you start maternity leave


 Why?


CCOVICH said:


> What would the company do with the car while the employee was on maternity leave?


Reallocate it to the person who fills in for the woman on maternity leave maybe?

Aren't pregnant women supposed not to drive in the latter stages of pregnancy so the car would be left idle for several weeks which would be on no use to the individual or the company?


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## Lobby (22 Jun 2007)

In relation to the awkwardness of it, assuming you had a co. car, then you'd have to get another car for the duration of the maternity leave and it may be the only car you have so is necessary for the trip to the hospital. I know, I know there's always parents, neighbours, taxi for the trip. 

Has anyone any experience of this situation?


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## terrysgirl33 (22 Jun 2007)

Appart from not driving when in labour, or for the first while after a ceaserean section, there is no reason for a woman not to drive in pregnancy.


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## Thrifty1 (22 Jun 2007)

I dont think there is a hard and fast rule for this. It would most likely be at the company's discretion. Perhaps if you were working there a while and intended on returning and had no other car they may decide to let you keep it.
However if your replacement would also be entitled to a company car they may not wish to provide 2 cars.

Clubman - women are allowed to drive throughout the pregnancy, the only exception being after a caesarian.

Crossed with post above.


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## Towger (22 Jun 2007)

This has been discussed before. If the employee is keeping the car. Their "Annual Business Miles" goes down so your BIK rate goes up. This can be dramatic, depending on ones circumstances. If the company is not paying while on leave and Tax Credits do not cover the BIK on the Car, (BIK has to be paid when due) the difference should be treated as a loan by the company, which in its self is subject to BIK at 12%.

So. Do you still want the car while on leave.. Crunch the numbers....


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## lillybilly (3 Jul 2007)

Your company car is part of your remuneration, if the company are paying you while on mat leave then therefore you are entitled to keep the car, I have read case law on this somewhere.  You will pay BIK as normal


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## ClubMan (3 Jul 2007)

lillybilly said:


> Your company car is part of your remuneration


As I said before - surely it depends on the nature and contents of the specific contract of employment?


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## NiallP (4 Jul 2007)

You get to keep the car irrespective of whether the company is paying you. An employee maintains all of her contractual rights whilst absent on maternity leave - with the exception of the right to remuneration. Therefore an employer does not bear any legal obligation to pay an employee while they are on maternity leave. An employee in such cases will apply for maternity benefit from the Dept. of Social Welfare.

However, in the particular case of maternity leave, there is a very narrow definition as to what constitutes "remuneration" - under European law, it is limited to the payment of wages or salary. This does not include an entitlement to a company car.

As such, you will be entitled to keep the company car whilst on maternity leave - on the basis that it is *not *remuneration.

In all other cases of protective leave (e.g adoptive, parental, carers etc.) you will not be entitled to the car as the definition of "remuneration" is much broader, encompassing an entitlement to a company car, and therefore may be suspended for the duration of the protective leave period.


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## JOP (9 Jul 2007)

Hi,

Re Company car tax I'd love to give my car back as I will be getting negative maternity pay but my employer wont allow me because they are in a lease or some excuse like this.  I've done a bit of an illustration below because surely this can't be right and wondered if anybody can help.

Net pay is for example £2200 per month less a deduction of £450 for the car I choose (car tax of £180 s payable instead of income tax on the £450).

So when I go on maternity leave I will get 90% for the first three months which is £2000 less the £450 and £180 car tax.  Not too bad I thought.  

But then for the months after this I get statutory pay of £110 per week.  However my company is still going to take a deduction of £450 for my car plus the company car tax of £180 which would normally have been offset by the saving in income tax.  So a deduction of £630 per month less say £440 (for the statutory pay).

My employer says if I take time off after month three they will be deducting £190 per month from my bank account and I am not allowed to give my car back during this time.  Its bad enough without a salary but to pay to have time off is going to be hard  - can they do this?


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## ClubMan (9 Jul 2007)

Are you based in the _UK_? If not then why are you quoting sterling numbers? Maybe the £190 deduction is in respect of state payable maternity benefit (or equivalent, if any, in _UK_)?


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## JOP (9 Jul 2007)

Yes but it is a deduction and not a benefit.  I would be better off resigning and getting zero than pay back to the company.


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## ClubMan (9 Jul 2007)

Presumably these terms & conditions are in the contract of employment that you signed up to in the first place? You make it sound like they're pulling a fast one on you with the arrangements.


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## Legin (15 Jul 2007)

NiallP:

Could you perhaps provide me with some details of the relevant caselaw you are quoting . i.e. definitions of remuneration for the purposes of maternity legislation and those for the Parental legislation (case refs, names of parties - links would be fantastic). I would greatly appreciate it.


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## Purple (16 Jul 2007)

JOP said:


> Its bad enough without a salary but to pay to have time off is going to be hard  - can they do this?


But if you had to finance your own car during this time it would cost no less. Can you get by with no car?


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