There are jobs where the company is required to provide a company car for the employee to carry out their work, and this can give rise to questions about how it should be used. The first thing we need to be clear about is that it appears in the contract signed between the company and the employee regarding the use of the vehicle company or the following agreements.
What happens if we have signed an agreement stating that it is for the company’s exclusive use?
In such cases, the employee may not use the vehicle for private purposes, and the company that owns the vehicle will be responsible for all costs associated with the vehicle, except for any fines arising from driving.
In such cases, will the company be able to use GPS devices and vehicle geolocation to monitor activity?
Article 20.3 of the Workers’ Statute provides that ‘The employer may take whatever monitoring measures they deem most appropriate and control to verify that the employee is fulfilling their obligations, work duties and their commitment to the company, whilst ensuring that its adoption and implementation take due account of their dignity.
It is also true that Article 20a of the Workers’ Statute regulates workers’ right to privacy in the use of the digital devices made available to them by their employer, to the digital disconnection and privacy in relation to the use of video surveillance and geolocation devices, in accordance with the provisions of current legislation on the protection of personal data and the safeguarding of digital rights.
Faced with this dilemma, what should employers take into account regarding the use of these devices?
- You must inform the employee and their trade union representatives of the presence of the GPS device in the company vehicle to be used by the employee.
- You may only use the geolocation and related information during normal working hours
- Geolocation will be justified and linked to business activities; therefore, it must not infringe on workers’ rights.
Is it possible for an employee to be dismissed for using a company car?
If the employer has informed the employee of the points listed above and it is demonstrated via the GPS device that the employee has used the company vehicle for private purposes outside working hours without authorisation, or whilst on sick leave, the employee may be dismissed for breach of the principle of good faith in a contract, as established in judgments such as the Supreme Court judgement of 15 September 2020, appeal no. 528/2018
Would the same apply if the agreement were for mixed use of the company car?
In such cases, the employee may use the company car outside working hours, and any costs incurred through its private use must be paid by the employee; should the company pay these costs, they shall be treated as remuneration in kind.
How should we account for the mixed use of a company car?
Any private use of a company car by an employee must be specified in the employment contract or in a subsequent agreement expressly drawn up for that purpose.
We hope this post has cleared up any doubts you may have had. Follow the Educa.Pro blog for more information on employment relations and employment law!
