I have worked for an employee for 26 years. I get a lease car which they pay a set amount each year and if i want i can get a bigger car and top it up. I have had a lease car for the last 12 years. Last week we got an email saying from now on that if we dont cover 3500 buisness miles a year then we lose the car as of now. On my contract under wages it says my salary "+ lease car" Is this not part of my wages and also the fact even if it was not on my contract which it is the fact i have had it so long? My question is can they do this without offering any negotiation, do it at such short notice and make this new rule of mileage up without any consultation (it is not in the leae car policy but they have issued a new policy with the email but it says draft all over it.
Hello, my name is Ben and it is my pleasure to assist you with your question today.
What are you hoping to achieve please?
I either want the car to continue or paid the money that was agreed for a lease car in my contract
OK, thank you, please leave this with me - I will look into this for you, get my response ready and get back to you on here. No need to wait around and you will get an email when I have responded, thank you
Apologies for the slight delay, I experienced some temporary connection issues earlier on. All seems to be resolved now so I can continue with my advice.
There is a principle in employment law where terms may become implied into an employment contract by ‘custom and practice’. This makes them contractually binding even if they are not written down anywhere. This area of law is rather complex and it is usually only down to the courts to establish with certainty if something had become an implied term. Nevertheless, it does not prevent employees from directly raising this argument with their employers.
The basic requirement for implying terms is the presumed intention of the parties, in other words - did the employer and employee intend for the terms in question to be treated as contractual. In general, a practice would need to have been clearly communicated and consistently applied for a substantial period of time before it can be considered an implied contractual term. Therefore, something that is uncertain, not communicated properly, not been applied consistently or has just been around for a few months is unlikely to qualify.
Case law has suggested that the following are important factors when considering whether a term has become implied in a contract:
You may tell the employer that you believe the term about the car and the associated value you are relying on has been implied into the contract through 'custom and practice' and as such removing it would amount to a change to your contract and see what they say. They could of course deny that and refuse to discuss the matter and if that is the case then you can only realistically challenge this by taking your case to an employment tribunal, although you can use the grievance process first if needed.
Hope this clarifies your position? If you could please let me know that would be great, thank you
Thanks for that and I assume the fact its says on my contract that my banding plus lease car this is a breach of contract anyway?
One final point what about the introducing the mileage rule just like that. Is that allowed?
Hi, yes it can be a breach of contract. As to the mileage introduction, then whether they can introduce it just like that or not would depend on whether it was a contractual term. As it is not specifically mentioned in the contract you would be relying on the argument that it had become an implied term through custom and practice as per the above rules and that changing it now would amount to a breach of contract
Hello, I see you have accessed and read my answer to your query. Please let me know if this has answered your original question or if you need me to clarify anything else for you in relation to this? I just need to know whether to close the question or not? Thanks