Car allowance

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    mandolin456 mandolin456 is offline Junior Member
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    Default Car allowance

    My employer is paying me my notice but has not included my car allowance in the calculation of monthly pay.
    My pay slip says
    Monthly pay
    car allowance
    Total Pay


    I used to have a company car but was asked by the company to switch to a car allowance.

    Thanks
    John

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    Employee Advisor Employee Advisor is offline Expert Advisor
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    Your car allowance should continue to be paid throughout your notice period.

    Unless there is an express or implied term in your contract of employment to withdraw company car allowance during your notice period then not paying this is a breach of contract.
    Clara Buckingham

    (Any advice I submit to Redundancy Forum is given in good faith without any further liability or obligation).




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    face2facehr face2facehr is offline user
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    When you say your employer is 'paying you your notice', do you mean you are not serving your notice period and are being paid in lieu of notice instead? In which case you wouldn't necessarily get your car allowance, no.

    If your employment is being terminated immediately, rather than at the end of your notice period, and you are being paid in lieu of notice, then as long as your employer has the contractual right to pay in lieu of notice, that would normally be salary only.

    If there is no contractual right to pay in lieu of notice then doing so would be a breach of contract and any payments are technically 'compensation', so you should in that case expect car allowance to be factored in.

    Are you being paid in lieu of notice and if so, what does your contract say about it?

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    Thanks Eleanor ... I answered this assuming that the John was working his notice period
    Clara Buckingham

    (Any advice I submit to Redundancy Forum is given in good faith without any further liability or obligation).




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