I am in the process of compiling a Company Vehicle Handbook for our drivers. We currently have no written rules or guidelines for any of our drivers. All employees have signed a Principle Statement of Terms and Conditions of Employment but there is no deduction from wages clause. I'm seeking advice on the following 4 clauses we wish to include in the Company Vehicle Handbook, specifically the legality and enforcement given current employees have signed Principle Statements with no deduction from wages clauses. Upon issue of the new Vehicle Handbook we would ask all employees to sign an accompanying document to say they have received, read, understood, and agree to abide to the rules.
- The Company reserves the right to withdraw the Company vehicle should the employee be placed on suspension, under notice or on garden leave.
- The Company reserves the right to charge the employee for the cost of repairing any damage to the vehicle caused as a result of their negligence.
- By signing the employees contract of employment the employee accepts that the Company shall be entitled to deduct the cost of any fines or fees from the employee’s wages.
- By signing the employee’s contract of employment, the employee accepts that the Company shall be entitled to deduct the cost of any repair or any damage and/or cost of the insurance excess from the employee’s wages.
All comments gratefully received and thanks in advance
It's been a couple of days since your post and no replies (unless you have had a pm or two) and I am thinking that what you are proposing has not clicked with members of HR Space. It certainly does not work for me. I am guessing that these are drivers of vehicles not normally used outside work for social and domestic purposes otherwise your first clause is not legal.
The second is not enforceable because you are legally required to have motor insurance, however you can set a penalty in terms of uninsured losses, which in my opinion on moral grounds should be capped at a nominal level.
Your third clause is normal.
Your fourth is a variation of your second.
Vehicle insurance and things such as residual values is a specialist subject. For instance, excess levels are decided by the Company depending on the insurance company's attitude and the claim history. You are asking your drivers to sign a blank cheque and this cannot be right - for instance you could decide to make the excess £1000 per vehicle per claim. No driver in their right mind would sign such a thing. The other reservation I have is using the signing of the contract of employment as an expedient way of establishing liability - this subject is too important for that and I can foresee situations arising where in effect the establishment is retrospective and therefore invalid.
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