Can my employer take away my company car? – Career & Education

Questions about employment law

By dpa/tmn

02 September 2024, 00:07

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The boss can only take back the company car if there is a corresponding contractual agreement. (to dpa: “Can my employer take away my company car?”) Photo: Christin Klose/DPA

For many people, the company car is more than just a car: it is a status symbol, part of the salary and a tool for work. If the car is cancelled, there can be a lot of anger. But is that even allowed?

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A company car that has also been made available for private use is just as much a part of the remuneration as the fixed salary or the variable remuneration. “That is why the employer is generally not allowed to take away this company car,” explains Peter Meyer, a specialist lawyer for employment law in Berlin.

Peter Meyer is a specialist lawyer for employment law in Berlin and a member of the executive committee of the Employment Law Working Group of the German Bar Association (DAV). (to dpa: “Can my employer take away my company car?”)

Photo: Weimann Meyer Gbr/DPA

However, there are exceptions:

• Contractual regulations: The employment contract or the company car agreement sets out the conditions under which the employer can demand the return of the car. According to Meyer, an example of this would be if the employee is unable to work for more than six weeks or if a field worker is effectively transferred to an office position without travel.
• Termination of the employment relationship: After termination, the employer can also demand the return of the company car, especially if an employee is released from work. Here, too, however, a corresponding contractual arrangement is necessary that entitles the employer to demand the return of the car immediately after termination, says Meyer.

No provisions regarding company cars in the contract?

However, if the employment contract does not contain any special provisions regarding the early return of the company car, then employees are entitled to continue using their company car until the end of the employment relationship, even during a possible period of leave.

If the employer demands the return of the company car without justification and an employee returns the company vehicle early, the employer can demand compensation, according to Meyer. The compensation usually corresponds to the amount that the employee had to pay in tax for the private use of the car.

About the person: Peter Meyer is a specialist lawyer for employment law and a member of the executive committee of the Employment Law Working Group of the German Bar Association (DAV).