Going on vacation with the company car?

We are almost halfway through the summer holidays: some have already returned from their vacation, while others have yet to leave. But what if you go on vacation with a company car? Is this simply allowed? Can this be done without any issues? Below, we answer a number of questions that may arise when going, or having gone, on vacation with the company car.

• What about damage and/or an accident? Who bears liability?

Normally, only the employer is liable for damage or an accident, provided that the company car is used solely and exclusively for work purposes. Liability will only be transferred to the employee if the employee commits a serious fault (such as running a red light, crossing a continuous white line, driving under the influence, etc.) or in the case of recurring minor faults.

If the employee is also permitted to use the company car for private purposes, and the damage/accident occurs during such private use, liability will initially rest with the employer, who can then recover the costs from the employee.

When an accident occurs (while on vacation), it must, as always, be reported.

• Is it permitted to refuel (or recharge) abroad?

It is possible that the fuel card (or charging card) is limited to refueling (or charging) in Belgium, but it is not excluded that refueling (or charging) abroad may also be possible, possibly subject to the employer’s permission.

An additional contribution may apply if a certain number of kilometers is exceeded, as well as an additional contribution when the fuel card (or charging card) is used abroad.

• Is it possible to go on vacation with a different company car, for example because one’s own company car is not large enough?

In this case, there are two options. On the one hand, as a company, you can make a pool car available during the vacation period. A flat-rate benefit will be charged for personal use, and the terms of use and arrangements will be set out in a pool car policy. On the other hand, as an employer, you can make a second company car available, for which you, as the employer, will owe a solidarity contribution.

The conclusion is that a good policy is very important. A company car policy setting out clear arrangements, including on liability, damage, options such as a tow bar or bike rack, etc., as well as rules regarding the fuel card, mileage limits, and fuel limits, is best included in a separate policy.

If you would like to develop an additional policy, or update your current company car policy, we are happy to assist you. Or if you have questions about your company car policy and would like to have it reviewed, do not hesitate to contact us at contact@alisadvocaten.be