Company car use: rules and consequences of misuse.

There are jobs that require the company to provide a company vehicle for the performance of work duties, and from there, questions may arise regarding its use. The first thing to be clear about is that this is stated in the contract signed between the company and the employee regarding the use of the vehicle or subsequent agreements.

What happens if we have agreed that it is for company use only? 

In these cases, the employee may not use the vehicle for personal purposes, and the company that owns the vehicle will cover all expenses inherent to the vehicle, except for fines resulting from driving violations. 

Can the company, in these cases, use GPS and geolocation devices to monitor activity? 

Article 20.3 of the Workers’ Statute (ET) establishes that “The employer may adopt the measures they deem most appropriate for monitoring and control to verify that the employee is fulfilling their obligations, work duties, and commitment of loyalty to the company, while ensuring that such measures respect their dignity.”

It is also true that Article 20.bis of the ET regulates the right of employees to privacy in the use of digital devices provided by the employer, the right to digital disconnection, and the right to privacy with respect to the use of video surveillance and geolocation devices, under the terms established by current legislation on personal data protection and the guarantee of digital rights.

Given this situation, what should the employer consider regarding the use of such devices? 

• The employer must inform the employee and their union representatives about the existence of the GPS device in the company vehicle that will be used by the employee. 
• They may only use geolocation and its data within the established working hours.
• Geolocation must be justified and linked to business activity; therefore, it cannot infringe upon the employee’s rights. 

Is it possible for an employee to be dismissed for using a company vehicle? 

If the employer has informed the employee of the aforementioned points and it is proven through the GPS device that the employee has used the company vehicle for personal purposes outside working hours without authorization, or during periods of medical leave, the employee may be dismissed for breaching contractual good faith, as established in rulings such as the Supreme Court Judgment (STS) of September 15, 2020, case no. 528/2018.

Would the same apply if a mixed use of the company vehicle is agreed upon? 

In these cases, the employee may use the company vehicle outside working hours, and any expenses generated from personal use must be paid by the employee. If these expenses are covered by the company, they will be considered a benefit in kind. 

How should the mixed use of the company vehicle be reflected? 

The private use of the company vehicle by the employee must be reflected in the employment contract or in a subsequent agreement made explicitly in writing.

We hope this post has cleared up all your doubts. Follow the Educa.Pro blog for more information related to labor relations and employment law!