Cash Allowance Policy

By Fleet News

24 February 2010

Many companies have taken the decision to offer staff cash in lieu of a company car.

However, this does not absolve the company of its health and safety and duty of car responsibilities. Employees who take the cash also need to be aware of the procedures and entitlements.

This document is a specimen policy statement/ declaration to cover the opting-out procedures and entitlements for employees wishing to opt for an agreed cash amount in lieu of the provision of a company car with the benefit of private use.

A document of this nature is essential to ensure that the terms and conditions of the opt out are clearly stated by the employer, and clearly understood by the employee.

In this example, key variables are highlighted in : sections with this formatting may be amended/ deleted as appropriate.

This text and content of this document was provided by an ACFO Member as their contribution to the ‘Membership Managing On-Road Risk Policies’ CD initiative.
The information is free from copyright constraints and fleets are invited to consider the texts, the range of contents and other elements, when next they are thinking about updating or introducing their own Policy.

The content of this and the other specimen documents has been left essentially unchanged, except for some substitutions/ deletions of names, phone numbers, addresses etc, which are highly specific to one fleet’s arrangements.

In general, the name of the organisation supplying the document has been replaced by the expression “(member company)”. Other data has been made anonymous by expression placeholders like “XXX XXX” etc.