The company car policy defines the guidelines for eligibility on company-owned vehicles and also enables eligible employees to opt for company-leased vehicles for official and personal use.
This policy template is available for download in Word format.
In just a few minutes, you will be able to create a company car policy. This policy covers rules to be followed with respect to:
The Company Car Policy has been formulated in order to introduce an employee-friendly and easy-to-administer car scheme in order to facilitate easy commuting for its select employees towards official duties.
Employees in < Grade / Level / Designation >and above are eligible to participate in this scheme. There are two types of programs:
Scheme A: Company-owned car program Scheme B: Company-leased car scheme
Eligible employees can opt for either of the schemes. All applicable taxes are to be borne by the employee under these schemes.
The employee will be required to maintain the car in good condition & incur all running costs, including costs of fuel, oils, air, cleaning, parking, etc., as required from time to time. If, as per agreement, the vehicle has to be handed over to the car lease company for periodical maintenance or repairs, then the employee is required to abide by the same. However, if maintenance and repairs are not covered under the agreement, employees will undertake to bear such expenses.
Traffic or parking violations or seizure of the vehicle by authorities for such violations will be the whole responsibility of the employee.
Any accidents caused due to negligence, carelessness, overspeeding or driving under the influence of alcohol or drugs will be the whole responsibility of the employee.
In case of inter-location transfers within the company, the car leasing company will organise all the necessary formalities. The concerned employee will be required to contact the HR Admin Department to initiate necessary processes.
In case of transfers to a subsidiary / affiliate / sister company, the car can be assigned to the new subsidiary if it also has an agreement with the said car lease finance company.
The transfer charges will be borne by the company if transfer is company-initiated. It will be borne by the employee, if transfer is employee-initiated.
Any Deviation from this policy has to be approved by Finance & HR. Any changes to the policy has to be approved by Legal and Compliance.
Violation of this policy is subject to disciplinary action, up to and including termination.