Is an employer entitled to take back a company car from an employee on long-term sick leave?

An employer’s entitlement to recover a company car from an employee on-long term sickness absence will depend on whether or not the employee has a contractual entitlement to a company car. In most cases, a company car is simply a tool of the job.

If the employee argues that the car is a contractual entitlement then his/her absence on long term sick leave is likely to have caused that alleged entitlement (along with other actual entitlements e.g. to full remuneration) to cease. This is particularly the case where the employee has qualified for permanent health insurance and/or if recent medical reports suggest no return to work in the foreseeable future.

Removal of the car from the ill