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Work car loan program

car loan program

Loaned by a company to an employee, a service car belongs to the vehicle fleet of the company in question. It can only be used by the employee for travel related to his professional activity. As a result, the employee does not have the right to use it outside working hours. Thus, it is not possible to use a service car during RTT days or paid holidays.

Unlike a company car , a service car is not considered as a benefit in kind since it cannot be used outside working hours. Beyond the impossibility ways to work car loan of using this vehicle in the context of his private life, a service car has other differences, whether it is a 2-seater, a 4-seater or a 5 seater. It does not involve the levying of social charges, it can be shared by several employees and it does not provide for any financial compensation in the event of the car being removed.

The regulations provide that a provision for the provision of a service vehicle is included in the employment contract . However, the removal of the service car is not considered a modification of the employment contract, unlike the removal of a company vehicle. Therefore, the company is not required to offer compensatory allowances to the employee or a salary increase.

According to the labor code , a service car can only be used for business trips. The employer has no social charges to pay on this type of vehicle. In certain cases, the company can be tolerant and authorize the employee to use the service car for his journeys between the workplace and his home. In such a situation, it is compulsory to mention this agreement in writing.

It is forbidden to use a service car for private trips and outside working hours. Reason why the use of such a vehicle on weekends is only possible if the employee works on weekends. Otherwise, it is prohibited. Using a service car for personal gain may give rise to disciplinary action, up to and including dismissal for serious misconduct .