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Company vehicle insurance


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My brother in law has the use of a works van. He had an accident in it last week. The accident was his fault (he ran into the back of the vehicle in front). He has told his employer this and has completed a report submitted by the company's insurers.

 

His employer is now saying that he has to pay the excess on the insurance policy which is £250 and which they say they will be deducting from his wages.

 

Can the employer do this? My brother in law does not have a written contract and so there is nothing in writing regarding liability for the insurance policy excess...

 

Fred

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The employer cannot make these deductions from his wages unless he has agreed to this kind of deduction beforehand.

 

If he has no contract of employment, and he hasn't given written consent for this in another way, then he is not liable.

 

Also, it would be interesting to know if your bro-in-law received any 'Particulars of Employment Terms' within his first two months of employment considering he has no contract.

 

The employers will no doubt try it on with him.

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Unless the employee has specifically signed paperwork regarding the use of company vehicles, they employer cannot simply deduct the excess from his salary.

 

I work for the NHS and have access to a works van. For me to drive it, I had to sign a set of terms and conditions which included paying any excess.

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