Can a company reduce my Geldwerter Vorteile?

16 posts in this topic

Hi everyone,

 

For the last 8 years I have been receiving a company 'benefit' car as part of my overall compensation package.  During these 8 years I have had 2 BMWs, both having a Geldwerter Vorteil of approx 540 Euro per month.  Late last year my company decided to implement a new European wide company car policy and as a result they are telling me that my Geldwerter Vorteile will need to go down.

 

My current car is due back to the leasing company in a few months and they are pushing for me to chose a different one with lesser value.  I have not been demoted, or under any performance related improvement plans.

 

Is this legal, and if not, what are my options? 

 

Thanks

 

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I've never seen an employment contract state specifically the make or worth of a company car.  Could, but would most like be very rare.  I'd make a strong guess it states a car will be provided at company expense. 

 

I can't help but wonder if a company provided computer or printer was provided and replaced with a less expensive version, would you also ask if it was legal?  Just looking at it from a different perspective.

 

Obviously the company is looking at expenditures and where they can cut back.  Better to have the car replaced with a less expensive one, then say the company decide to reduce employees.

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14 minutes ago, engelchen said:

What does your contract say?

 

It says the car can be taken away in the event of dismissal but does not mention the employers right to reduce the GV.

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6 minutes ago, BayrischDude said:

I've never seen an employment contract state specifically the make or worth of a company car.  Could, but would most like be very rare.  I'd make a strong guess it states a car will be provided at company expense. 

 

I can't help but wonder if a company provided computer or printer was provided and replaced with a less expensive version, would you also ask if it was legal?  Just looking at it from a different perspective.

 

Obviously the company is looking at expenditures and where they can cut back.  Better to have the car replaced with a less expensive one, then say the company decide to reduce employees.

 

No, but as far as i know a printer or computer has never been offered to someone as part of their compensation package.

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1 minute ago, Yugtabub said:

 

No, but as far as i know a printer or computer has never been offered to someone as part of their compensation package.

 

True, because it is expected, like a desk, perhaps a telephone, electricity and plumbing. ;)  A company provided car is expensive and as it is not an expectation, it is in your contract. 

2 minutes ago, Yugtabub said:

 

It says the car can be taken away in the event of dismissal but does not mention the employers right to reduce the GV.

 

So, my last two sentences seem to be correct.  You're still getting a car, just a less expensive one.  Why not ask?  You'll probably be told the company is looking for means to save money.

 

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14 minutes ago, Yugtabub said:

 

It says the car can be taken away in the event of dismissal but does not mention the employers right to reduce the GV.

 

Is the value of the GV explicitly stated in your contract?

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Well, if the make and model of the car is in your contract, then the company must adhere to it like you must.  I do find it odd though that it states the make and model.  Seems you will need some advise on this. 

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9 minutes ago, Yugtabub said:

No, the make and model is

 

Well: less extras, no alloy wheels, no high-end sound system and a smaller engine. You can still drive the same make and model.

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Do you have a works council?  If so then talk to them, there might be some agreements defined on who is entitled to what in this area.

 

And even if there isn't, then you could still get their advice, and tell them that you effectively see it as a pay cut.

 

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1 hour ago, Yugtabub said:

During these 8 years I have had 2 BMWs, both having a Geldwerter Vorteil of approx 540 Euro per month.

540*12*8=51840€

 

You are aware that you paid tax on that?

 

Taking a cheaper car will have the result that you have more cash in your hands (as the tax you have to pay will go down)

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3 minutes ago, franklan said:

540*12*8=51840€

 

You are aware that you paid tax on that?

 

Taking a cheaper car will have the result that you have more cash in your hands (as the tax you have to pay will go down)

Yes, I know this would happen.  My question was more around the legality of reducing it.  As it is a benefit car and not a car that is needed to travel for work I felt it was unfair to reduce it as I feel it is part of my salary 

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42 minutes ago, someonesdaughter said:

 

Well: less extras, no alloy wheels, no high-end sound system and a smaller engine. You can still drive the same make and model.

Yes I know this, the point was - is it legal to do it without there being performance related issues. 

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4 minutes ago, Yugtabub said:

Yes I know this, the point was - is it legal to do it without there being performance related issues. 

You won't get a substantial answer without posting that specific section of your contract.

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7 minutes ago, Yugtabub said:

I felt it was unfair to reduce it as I feel it is part of my salary 

 

Your feelings are one thing, what's in the contract is another. That's why engelchen asked you about the contract.

 

This

 

Quote

Late last year my company decided to implement a new European wide company car policy

 

makes it general thing, not an individual one. Did you talk to your work mates? What do they think about it?

 

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