Question

We have a lady in our sales team who is about to go on maternity leave. We want to take her car off her whilst she is on maternity leave and give it to her replacement. Can we do this?

Answer

The answer to this depends on whether the car is provided to her for personal as well as business use. If provided for personal as well as business use, company cars should generally not be withdrawn during maternity leave.

Non cash benefits that are provided purely for business use, such as a mobile phone, laptop and even a company car, can be withdrawn during maternity leave.  

Ironically if she received a car allowance the situation would be different. There would be no obligation on you to continue providing this as it is treated as remuneration by the HMRC and, as you probably know, there is no requirement to continue paying remuneration during maternity leave. 

If you would like to know more, please contact Tony Hyams-Parish, in confidence and without obligation by emailing Tony or by calling him on 08450 990045, or speak to your usual contact in the Employment Team.

This answer is provided for information only and does not constitute legal advice. Professional legal advice should be obtained before taking or refraining from taking any action as a result of the contents of this article.

02/10/2012

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