Lead Story
Crashing a company car could be more than an embarrassing situation for an employee – it could actually cost them their job. In the UK in particular, employers have the power to dismiss staff for such an offence and employees should be aware of the consequences.
It’s not always a case that employees can be held to blame, but even if no fault can be determined, disciplinary action may still be taken. It’s always best to fully understand the company rules and its policies before getting behind the wheel.
The employer’s insurance policy should cover for any damages, but it is still an unpleasant situation for anyone to be in. Companies will take varying approaches as it relates to how they address this issue, but there are certain basic elements to consider.
The first factor to consider is the employee’s individual contract. If they weren’t expected to drive in the course of their normal duties or given written authorisation to do so, then termination is a possibility.
The second element is the context in which the car was damaged. If it was, for example, during company business, then the employee may be held responsible. If they were using the car for personal business, then other mitigating factors come into play.
The third pertinent point is the cost of the repairs. If the costs are deemed to be too expensive for the company to bear, then the employee may be liable to pay for the damages, depending on their individual contract with the employer.
Finally, any additional penalties that the employee may face with insurance companies, through court proceedings or through the Police have to be taken into consideration.
Legal Implications
If an employee is dismissed for crashing a company car in the UK and the employer chooses to challenge any claims issued against them, the legal system may come into play. The employee will be able to assert their case against their employer, though they may face certain difficulties.
The employee must prove that they complied with any and all safety regulations, as well as how their true intentions were misunderstood or incorrectly evaluated by their employer. The employee could also bring an ‘unfair dismissal’ case against their employer if they feel that the reasons for their dismissal were not valid.
If the employer is being charged for the damages that have been caused, then the financial implications must be taken into consideration. They may also face insurance surcharges and other fines.
Insurance Matters
A company must insure any vehicles they choose to make available to their employees, as is standard and expected across Europe. If an accident occurs and no fault can be proven, then the insurer should cover the costs of any repairs and legal troubles that may arise.
The employer will have to ‘fess up’ to their insurance provider, however, and that could result in costly premiums hikes, depending upon the details of their agreement.
As such, it’s vital that employers ensure they’re not taking unnecessary risks when they lend out company cars.
Human Resources
In the instance that an employee is dismissed for crashing a company car, the employer must ensure that their Human Resources strategies adhere to their approach to the situation.
Any disciplinary action should be documented with witness accounts, and the criteria for issuing the termination should be consistent with any similar cases that the employer has encountered in the past.
Employers should also consider offering counselling and other support to employees who may have been affected negatively from the dismissed employee.
Public Relations
A public relations disaster can take place if an employer is seen to unfairly implement disciplinary action for an employee who has crashed a company car. If the news reaches the public, the employer may come under scrutiny and the impact can be damaging to the company’s reputation.
To avoid any negative publicity, the employer should ensure they follow reasonable procedures and make sure that the disciplinary process is kept private. This can ensure that any further blows to the company’s reputation can be avoided.
Conclusion
Any employer or employee in the UK should be aware of the potential implications that crashing a company car may bring. Whether it’s a case of disciplinary action or dealing with the costs of the damage, the consequences may be serious. It’s vital that everyone works together to ensure safety and responsible driving practices when a company car is in use, no matter the circumstances in which it is being operated.
