Wabtec UK Company Car Policy

Transcription

1 Wabtec UK Content Page Number 1. Introduction 2 2. Eligibility & Conditions Essential User Car Allowance/Company Car New Starter or Promotion 2 3. Allowance/Lease Cost 2 4. Choice of Car 3 5. Benefit in Kind Taxation 3 6. Lease Duration & Replacement Cycle 3 7. Car Swaps 4 8. Requirements/Exclusion From the Scheme 4 9. Driver Assistance Driving Licence Checks Insurance Other Company Drivers Non-Employee Drivers Misuse of a Company Car Accidents and Damage Servicing, Tyre Replacement, Repairs & MOT Fixed Notice Penalties & Offences Mobile Phones Smoking Policy Environmental Impact Foreign Travel Reimbursement of Business Mileage Fuel Card Mileage Records Driver Responsibilities 8 Any amendments or changes to the policy are to be made by the Group HR Manager on behalf of the UK Group Managing Director. Wabtec Group Page 1 of 8

2 1. Introduction This policy details the provisions for employees in relation to Company provided cars and covers job need car (essential user), car allowance or the provision of a Company car. The Company reserves the right to change, modify or withdraw all or any section of this car policy at its sole discretion. Anyone eligible for a car under the Company Car Scheme will be advised of any significant changes to the policy. Replacement cars are to be authorised by the Site/Business Unit Managing Director. Any new editions to the scheme either through recruitment or promotion will require the approval of the UK Group Managing Director. Employees who are in receipt of a car allowance or who are provided with a Company car are required to adhere to the Company Car policy. Any non-compliance of any aspect of the policy may be dealt with under the Disciplinary Policy and may result in disciplinary action up to and including dismissal. 2. Eligibility & Conditions 2.1 Essential User the requirement is based on the job need to drive at least 10,000 business miles per annum and/or someone who can t effectively carry out the duties of the job without a Company car. The car provided will be suitable for the effective performance of the job as determined by the Company and will be taxed, insured and maintained. Where the car is provided for personal use, this is classed as a benefit in kind under HMRC rules and the employee will be subject to tax, see section 5. The mileage will be monitored on a regular basis and the Company reserves to the right to withdraw Essential User cars either for excess personal mileage or because the job requirement has changed or because the business mileage requirement has reduced. In this instance, a transitional period would be agreed. 2.2 Car Allowance/Company Car Eligible employees will be entitled to either a Car Allowance (taxable) or a Company Car. If an employee s contractual entitlement should change, then the Company reserves the right to withdraw the benefit. If an employee chooses to have a Company car, the leasing cost must not exceed the contractual allowance. The car is provided for both business and personal use, being taxed, insured and maintained at the Company s expense. The provision of a Company car will be through the Company s preferred vehicle leasing provider, the Company reserves the right to change the vehicle leasing provider. 2.3 New Starter or Promotion - If a reallocated Company car is available then this will be offered to the new or promoted employee on a permanent basis until the lease period expires. Once the lease period has expired, the employee will be invited to select a car in line with the Company car policy. If there are no cars available for reallocation, the employee will be invited to order a new car. Until the new car is delivered the employee will need to use a pool car or will be eligible for a hire car. 3. Allowance/Lease Cost The type of car and its capacity will be determined in accordance with the table below: Grade Broad Description of Role /Level Allowance/Lease Cost Grade 1 Business Unit Managing Director Up to 625 Grade 2 Directors / Senior Managers Up to 525 Grade 3 Managers/ Senior Technical Specialists Up to 425 Essential User Requirement to do 10,000 business miles or required to carry out the duties of the role or cover a number of sites/locations e.g. Service Engineers, Fleet Support, Sales staff Company specified car. If the employee chooses to take the allowance option, they must have an appropriate car available to them at all times during working hours and when a requirement to drive business miles is necessary. The car must by less than 5 years old, be roadworthy and insured for business use. The Company reserves the right to cease payment of a car allowance if, Wabtec Group Page 2 of 8

3 in the view of management, the car provided by the employee is restricting, limiting or adversely affecting the employee s performance of their duties or the Company s corporate image. The insurance documents and a valid driving licence must be made available for inspection by the Company. The employee may opt back into the Company car scheme after the first anniversary having opted out and then on an annual basis thereafter. If an unallocated car is available this will be reallocated before the employee has the opportunity to order a new car. Provision of a Company car is conditional upon the employee holding a valid UK driving licence. The individual must provide sight of their driving licence upon commencement of work and annually thereafter. The Company must be made aware immediately in the event of any points being obtained or in the event of disqualification. The Company, reserves the right to take disciplinary action if it is deemed to affect the ability to carry out the requirements of the role. 4. Choice of Car The Company has a preferred leasing company who must be used for the provision of Company cars. The choice of car will depend whether the employee is an essential user or receives a Company car. For Essential Users the Company will determine an appropriate car. Where an employee is eligible to choose a car, the lease provider will provide quotes. There is a CO2 restriction of 130g/km, the limit may be subject to change at the Company s discretion. Car orders will only be placed once confirmation has been received that the car requested is within the appropriate allowance and within the appropriate CO2 limits. The order must be signed by the Business Unit Managing Director for replacement cars or the UK Group Managing Director if the employee is a new addition to the scheme. The following cars are excluded: Soft top convertibles Two seaters * Non-standard production models *Company cars must be able to comfortably seat 4 adults. Cars must not be modified or altered post-delivery. The exception being tow bars or roof bars, approval from the leasing Company is required. 5. Benefit in Kind Taxation Drivers of any car provided by Wabtec if used for personal journeys are then considered as a Benefit In Kind under the Her Majesty s Revenue & Customs (HMRC) rules and therefore subject to tax regardless of the number of miles travelled. The level of tax is determined by the manufacturer s list price of the car, fuel type and the level of carbon dioxide it emits (g/km). Such information will be provided with the choice of cars available at the time. It is important that employees when changing their car notify HMRC of the change to ensure that the appropriate Benefit in Kind tax is paid. 6. Lease Duration & Replacement Cycle Car leases will usually be 3 year contracts, 75,000 miles (25,000 miles per annum). The Company operates on a pooled mileage basis. The lease cost per month used is Total Rental Figure (not the effective rental cost). The allowances will be reviewed from time to time at the discretion of the Company. Employees who expect their annual mileage to exceed 25,000 miles per annum should notify their HR Representative. Employees will be notified when their car is approaching renewal, i.e. 3 months before the end of the lease. Replacement will be on a discretionary basis, if a car becomes available which has time on its lease left then the Company reserves the right to replace an expired car with an equivalent non expired car. Wabtec Group Page 3 of 8

4 The employee is committed to retain the Company car until the end of the lease period. Once the lease term has been completed, the employee if eligible can order a new car or where appropriate choose to receive the car allowance. The Company reserves the right to replace an expired car with an equivalent non expired car. 7. Car Swaps with Colleagues Once a car has been allocated to a driver it should remain with that driver for the duration of the lease period. Permanent car swaps will only be authorised in exceptional circumstances; it is important that drivers consider their personal circumstances when ordering a car. 8. Requirements/Exclusion from the Scheme A driver must produce a copy of their valid driving licence to the Company whenever requested to do so. Driving a Company car without a valid licence is an offence for which the driver may be prosecuted, and disciplined. Drivers must notify HR or their Line Manager immediately of any change in circumstances, which may affect the Company insurance of the car and their legal ability to drive it. Failure to do so renders the driver personally liable for any costs resulting from accidents involving their lease car and may result in disciplinary action. If a driver has their licence suspended by a court, or is found grossly negligent in meeting their responsibilities under the scheme, the Company reserves the right to exclude them from the scheme without compensation. 9. Driver Assistance In the event of a breakdown or road side assistance, the driver should contact the Driver Assistance line, the telephone number is included in an information pack provided by the leasing Company. In the case of an accident the driver should inform the Insurance Claims helpline as soon as reasonably possible after the accident. Drivers must also inform their HR representative and their line manager of the incident or accident. 10. Driving Licence Checks All employees who have access to a Company car must be in possession of a valid driving licence and will be required to complete a driving licence check mandate authorising the company to validate their driver s licence with the DVLA. Drivers are required to notify the Company immediately of any change which will affect the status of their licence i.e. penalty points/endorsements/notifiable medical condition. 11. Insurance All Company provided vehicles are covered by the Company s Certificate of Motor Insurance. An employee who takes the car allowance option is not covered and employees who use their own cars for business use must ensure they have adequate business insurance cover. Any excess on personal insurance policies must be covered by the employee in the event of an accident whilst on Company business. Company cars are only covered for use on Company business and for social, domestic and pleasure purposes. The insurance policy excludes use for driving tuition, racing, pace making, speed testing, competitions, rallies or trials. Such use is unauthorised and the driver would be driving uninsured and illegally. Drivers are required to observe the limitations of use specified on the insurance certificate. A copy of the Insurance Certificate will be provided. Drivers with provisional licences are not covered by the Company s Certificate of Motor Insurance and are not permitted to drive Company vehicles. In the event of a driver making more than one insurance claim in any 12-month period, the Company reserves the right, to charge the employee an excess of 250 for the second and any subsequent claims in any 12 month period. Any money owed to the Company in accordance with an employee s contract of employment, will be deducted from their salary. If more than three claims are made in a 12 month period then the Company will review the continued eligibility of the driver to have a Company provided car. The Company reserves the right to withdraw the benefit of a Company car. Wabtec Group Page 4 of 8

5 Company car drivers must take responsibility for any company assets in their car such as mobile phone or laptop etc. If valuable items have to be left in the vehicle then they must be locked in the boot or at least concealed out of sight. If it is considered that an employee has been grossly negligent the company reserves the right to take appropriate disciplinary action and may forfeit their eligibility to participate in the scheme. The Company insurance only covers liability (property or injury) whilst towing but not for the caravan/trailer itself Other Company Drivers Drivers must make their car available during normal working hours for other employees to use on company business. Any employee driving a Company car is required to provide a copy of their driving licence and complete a driving licence check. An accurate written record of use by other employees must be maintained in case fixed penalty notices are issued or other offences involving the car are alleged or the driver may be held liable Non-Employee Drivers Under the Company s certificate of Motor Insurance, the employee who is the allocated driver can authorise their spouse/partner or immediate family members to drive their allocated car as long as they are over 21 years of age and hold a valid licence. Nominated drivers must be notified to the Company in advance of driving a Company car. They will be required to provide a copy of their licence and complete a driving licence check mandate authorising the Company to validate their licence with the DVLA Misuse of a Company Car The improper use, poor treatment or neglect of a Company provided car will have an adverse effect on the residual value of the car at the end of its lease. All Company cars will be inspected for fair wear and tear. Where a Company car requires repairs to reinstate to a fair wear and tear condition, the employee (or leaver) will be liable for the cost of the repair. Any damage to a Company car must be reported and dealt with immediately. 12. Accidents and Damage In the event of an accident or damage to the vehicle the employee is required to notify the Insurance Company and their line manager of any accident/incident they or their nominated driver has been involved in. Examples of (but not restricted to) incidents deemed to be within the driver s control are: Collision with fixed objects (walls, fences, trees, other parked vehicles. Driving into water. In the event of an accident or incident: First, the driver must ensure their own personal safety and that of others involved in the incident. If anyone is injured as a result of an accident, they must seek medical advice, no matter how minor the injury may appear (if this is not done, the employee may lose eligibility to claim for damages). Do not admit liability, discuss the incident or offer to pay. Allow time to think. If possible take photos of the accident, the damage to the vehicle/s involved and of anything that may have contributed to the accident/incident. Advise the third party that the Company will deal with the matter. Make a note of third party details including name, address, telephone number, registration number, make and model of car, insurance Company s name, policy/certificate number and car owner s name. (Be aware that under section 154 of the Road Traffic Act 1998, parties are legally required to provide such information to anyone reasonably requiring it.) Note any witnesses and obtain their names and addresses. Contact the Company within 48 hours In the event of any person being injured, seek medical advice and inform the Police immediately. If the Police become involved, make a note of the officer s name, number and address of police station. Wabtec Group Page 5 of 8

6 Notify the employee s manager of the accident as soon as possible. If the Police ask for a statement, it does not have to be provided immediately. It is better to prepare the statement after taking time to carefully recall all the facts. A copy of the statement must be provided for the company and a copy kept for the driver. 13. Servicing, Tyre Replacement, Repairs & MOT For Servicing, Tyre replacement & making arrangement for an MOT, the driver is responsible for arranging through the Leasing Company. For Repairs associated with an accident these should be arranged through the Insurance Company. For all other repairs, these should be authorised and organised through the leasing Company. 14. Fixed Notice Penalties and Offences If an employee or a nominated driver incur any fines or penalties, it is the driver s responsibility to pay or appeal against the fine. Any admin fee associated with the transfer of liability from the leasing company to the individual will be the responsibility of the driver. Under no circumstances will the Company meet the cost of any fines or penalties incurred. If the Company is asked to provide information to the Police in relation to such an offence then the Company will endeavour to advise the employee, but will not delay, nor fail to provide the requested information. If an employee is convicted of any driving offences, they must inform HR in writing immediately. Eligibility for continued participation in the scheme will be reviewed and the employee may be liable to forfeit eligibility at the Company s discretion. In cases where the licence is withdrawn by a court and this renders the employee unable to perform their normal duties, they may face dismissal from the company. 15. Mobile Phones The use of hand-held phones whilst driving is illegal and is subject to an automatic fixed penalty notice, 3 penalty points and a fine of 100 which the driver will be required to pay. Ideally the use of a mobile phone whilst in control of a car should be avoided. Only if safe to do so should drivers talk hands free. All company cars should have Bluetooth capability. Drivers should note that if the Police think a driver is distracted whilst driving hands free and they are not in control of the vehicle, the driver can still get stopped and penalised. 16. Smoking Policy Smoking is strictly prohibited within any Company cars including hire cars whether on or off site. It is a criminal offence if you do not comply with the law around smoking at work. If you are the allocated driver of a Company car you are required to display a no smoking sign in the vehicle. Breaches of the smoking policy may result in disciplinary action. 17. Environmental Impact It is important that everyone is aware of the impact of their business activities have on the environment. As a socially responsible Company, we seek to minimise these impacts in order to preserve the environment and to this end the following guidelines should be observed. Journeys should be planned to combine activities and should avoid congested routes. Speed limits should be adhered to. Drive as smoothly and economically as possible. Ensure that the car is properly maintained. Avoid carrying unnecessary weight. To avoid drag, only use a roof rack when essential. Do not leave the engine idling when stationary for long periods. Wabtec Group Page 6 of 8

7 18. Foreign Travel Prior to travelling abroad in a Company car, the employee must make arrangements to obtain permission from the leasing company to take the car abroad, this is done by completing a VE103 form. The leasing Company will charge for the processing of form, if the trip is a personal trip the fee will be payable by the employee. Employees should allow 3 weeks to get the required documentation which should include European breakdown and repatriation cover. 19. Reimbursement of Business Mileage Fuel used for business mileage will be reimbursed in accordance with Company mileage rates which are in accordance with Her Majesty s Revenue & Customs (HMRC) advisory fuel rates. Company Car & Fuel Card Company Car & No Fuel Card Car Allowance & No Fuel Card Car Allowance & Fuel Card Employee using Personal Car (not in receipt of Car Allowance) Employee not eligible to claim mileage from the Company. Claim business mileage from Company based on Government Advisory Fuel Rates* Claim business mileage from Company based on Government Advisory Fuel Rates* Employee not eligible to claim mileage from the Company. Employee eligible to claim from the Company 45p per mile for first 10,000 business miles and 25p thereafter. * Advisory Fuel rates are reviewed on a quarterly basis. Any changes to rates will be published by the Group Finance Director. Where appropriate the employee may be able to claim business mileage allowance from the HMRC, this is outside any Company mileage claimed and is the employee s responsibility to process directly with the HMRC Fuel Card Where an employee is in receipt of a Fuel Card and fuel is provided for both business and personal use, the employee will pay tax in line with HMRC rules for the benefit of having fuel provided for personal mileage Mileage Records Records must be maintained of mileage for business and personal use. The Company reserves the right request copies of mileage logs. 20. Driver Responsibilities Drivers should ensure they understand and comply with the Manufacturers handbook and make sure the car is serviced according to the manufacturer s recommendations, at the correct times and by a recognised garage and where appropriate ensure any appropriate recall notices are actioned. Ensure the car is in good working condition and satisfies all legal requirements, e.g. correct tyre-tread, good brakes, lights, steering and if appropriate has a valid MOT pass certificate. The driver has a responsibility to ensure that the car is kept in a clean and tidy condition. Drivers should ensure they have full knowledge of their legal responsibilities as detailed in the Highway Code and should drive in accordance with these guidelines at all times. Any employee driving business mileage must be possession of a valid and suitable driving licence and will be required to complete a driving licence check authorising the Company to validate their driving licence. Wabtec Group Page 7 of 8

8 Drivers are required to notify the Company immediately of any change which will affect the status of their licence i.e. penalty points/endorsements/ notifiable medical condition. Ensure that business mileage is recorded and claimed in accordance with the relevant mileage allowances. Drivers are required to notify the Company s Insurance provider of any accidents/incidents that they have been involved in whilst driving on business or whilst in a Company provided car. Any speeding/parking fine or other road traffic offence will be paid for by the employee driving the vehicle at the time of the incident. The fine should be dealt with immediately. Wabtec Group Page 8 of 8