Your rights: Worker no longer has choice of company car or allowance

By CHRIS PATTERSON

Q. The company I work for has informed me that I no longer have the choice of either a company car or an allowance. I now can only take a company car, with the allowance option gone.

In 1999 I signed a car policy terms and conditions document that says I have a choice. At the same time my manager sent a letter that also confirms that I have a choice.

In 2001 the company provided a new car policy terms and conditions document and I signed it. It did not specify that I had a choice, although it didn't say I had no choice either. There was no mention or discussion of this choice being removed at all (which my manager admits).

HR recently informed me that I have no allowance option and they say that because I signed the 2001 document I no longer have a choice. Is that true, even though they never informed me of the loss/change?

A. A basic and quite sensible rule is that parties to an employment relationship should do what they say they will do.

Employment agreements create enforceable rights. It appears that your employment agreement included a term that allowed you to elect the right to a company car or an allowance. As such the company has agreed to give you either a car or allowance. The company has also agreed that you have the right to choose.

The 2001 document is silent on the issue of whether you have a right to choose. I assume that the 2001 document does not include a clause stating that it completely replaces all the terms of the 1999 car policy, in which case it is most likely that your right to choose remains.

The company cannot take away your right to choose without your agreement. It appears as if the company is attempting to unilaterally take away your right to choose.

The company may believe that the provision of an allowance was merely a perk or that it has the right to dictate which option will be available. I suggest that you talk to HR about your view that you have the right to choose.

You could ask an employment relations professional to write to the company seeking confirmation that your right to choose will be honoured. You could, if necessary, apply for a compliance order from the Employment Relations Authority.

However, I suggest that you exhaust all avenues for discussion before going to the authority.

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