Removal of Company Car Benefit

I’d like to hear from any organisation that has removed the company car benefit (car or allowance) from employees where the required annual business mileage for a ‘business need’ car is no longer achieved. In our case we require 10,000 business miles per annum to qualify for a car and many are doing much less. We have a contractual clause and details in the policy which does give us flexibility to remove the benefit.

If you have implemented such a change, I’d be grateful to hear what process you followed - communication/consultation/length of notice before making the change/any compensation – lump sum, loans etc. Thank you very much.

Comments (2)

Hi - I know this is a a really old question but we have start reviewing our company car benefits, and I wondered how you arrived at the 10,000 business miles per annum as a lower limit?

Hi Alayna. We tackled the issue of job need drivers not achieving the required mileage a couple of years ago and I'd be happy to share our approach. You can e-mail me at ian.h.davis@directlinegroup.co.uk and we can set up a call. Ian

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