In brief
A company car policy sets the conditions under which an employee is provided with a company vehicle. It forms the basis of the vehicle-use agreement and is therefore part of the employment arrangement.
What should it include?
Eligibility, the extent of private use, coverage of costs and employee contributions, rules for fuel and charging electricity, conduct after damage and violations, insurance coverage, and conditions for return after termination, leave of absence, parental leave, or prolonged illness.
Why are the return provisions so important?
Because providing a vehicle for private use has its own significance under employment law; it is more than a fleet administration issue. When a vehicle can be requested back and how the relevant clause must be worded require an individual assessment under employment law.
These provisions should be reviewed from an employment law perspective before the policy is introduced.
What should be considered when introducing it?
Existing vehicle-use arrangements initially continue, so in practice a new policy mainly applies to new vehicles and agreements. Anyone planning a transition, for example to electric powertrains, should account for the interim period: two sets of rules will apply in parallel for several years.
If there is a works council, it must be clarified whether and to what extent co-determination rights are affected. In practice, it helps to revise the policy together with the Car Policy so the two documents do not contradict each other.
Further reading
Fleet Management Without Excel Spreadsheets
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