Company Car Policies: Can Your Employer Fine You For Speeding?

As businesses thrive more and more on efficiency and accountability, the company-provided cars have become more than just a perk; they come with responsibilities and expectations.

When an employer provides its employee with a car, the employee is bound by the company car policies that can affect their job and wallet, if not abided by properly.

When driving the company car, one of the most pressing questions employees have is, “Can my employer fine me for speeding?”

The answer to this question lies in the company car policies, contractual agreements made between the two parties, and technology used to monitor driving data.

Understanding Company Car Policies

Company Car Policies are formal documents that outline the rules, expectations, and obligations for employees who are provided with a vehicle for business (or mixed personal/business) use. Most of the time, these policies address matters such as:

Who can drive the car?
What will be the insurance requirements?
Rules that cover traffic issues, especially speeding more than the actual limit.
What activities are allowed and which are forbidden for this vehicle?
What kinds of maintenance and service are required?
Fuel and mileage allowances.

Employers introduce such policies to protect themselves, comply with the legal regulations, and keep the company’s assets under control.

Moreover, they include rules to help drivers obey laws related to driving, including the speed limit.

Contractual Clauses: What Does The Agreement Say?

Legally, it is not allowed for employers to fine employees, but they can discipline or charge them financially if that is included in the policy.

Normally, contracts may feature clauses such as:

Responsibility for Fines: Many company car policies place responsibilities on the employee to cover traffic and parking fines if they incur while driving the company-provided car.
Damage and Insurance Liability: Cases of speeding can bring claims from the insurance company, and employees might be responsible for part or the whole cost.
Deduction From Salary: Employers may set up contracts where some deductions from pay can occur if an employee has violated workplace rules and paid fines as agreed.
Internal Penalties: Some employers take it a step further, making you responsible for their internal penalties if you get traffic tickets. For instance:
- Imposing further punishments, such as warnings or suspensions.
- Revoking your company car privileges.

The Role Of Telematics In Monitoring Drivers’ Behavior

Modern Company Car Policies often incorporate the use of telematics—technology that tracks real-time vehicle data such as location, speed, acceleration, braking, and even idling time. Such systems are put in place for more than one reason:

Managing fuel efficiency.
Checking on the driver’s performance.
Reducing insurance rates.
Ensure better safety for drivers.
Ensure compliance with company car policies.

Telematics records speeding offences with information such as times, GPS coordinates, and the number of violations. With this data, organisations can defend taking disciplinary steps or offering additional training. Persistent offenders may be prevented from driving the company car or be penalised by the company.

Before using telematics legally, employers must agree to use them by signing agreements or privacy notices with their employees. It is important for employees to know what is being watched, why it is done, and how it will be utilised.

Can Your Employer Fine You?

If your company car policies allow, your speeding data caught by your car’s telematics could result in your employer warning, reprimanding, or even fining you for speeding, without an appeal to the police.

Company Car Policies: Legal Limitations

Organisations have to obey both employment and privacy laws. They should let you know if your driving is being watched and ask for your permission to track it with telematics.

Your employer needs a good reason to deduct money from your paycheck:

It’s stated in the contract that you’ve both agreed to check your contract
The reason for the deduction is something you did, such as pay a legal fine.

Final Thoughts: Company Car Policies And Speeding Fines

Your employer can hold you accountable for speeding in a company car, especially if the company car policies and contractual clauses allow it.

Now, with the rise of telematics, it is more than easier for your employer to track your driving habits and make sure you follow the rules.

Understand your responsibilities so you do not get into trouble, and always drive safely.

Best Practices For Employees

To avoid any surprises and unexpected fines and even worse, suspensions, make sure that you, as an employee:

Thoroughly read and understand the company car policies before signing the contract.
Ask your employer for clarification if you’re unsure about any clause before signing the contract.
Drive safely and within the speed limits, for both your safety and job security.
Request access to your telematics data, if you’re being monitored, so you can check what’s being recorded.