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Company car for private use too: can the employer simply take it away?

A company car that you are allowed to drive privately too is more than a work tool: the private use is a monetary benefit and therefore part of your remuneration. Accordingly, the employer may not take it away again at will.

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The permitted private use of a company car is a monetary benefit and part of the pay (recorded for tax purposes via the 1 % rule or a logbook). The employer must be able to justify a withdrawal of it.
A unilateral withdrawal is only permissible if it is validly reserved by contract or a recognized reason exists (for example a valid release from work). If the private use is taken from you without justification, there can be a claim to loss-of-use compensation or damages.

What you should do now

  1. 1

    1. Check the agreement

    How is the private use regulated? Is there a valid revocation or withdrawal reservation?

  2. 2

    2. Check the reason for withdrawal

    Is there a recognized reason (for example a release from work), or is the withdrawal without grounds?

  3. 3

    3. Object in writing

    In the event of an unjustified withdrawal, object in writing and demand continued use or compensation.

  4. 4

    4. Advice

    In a dispute, the works council, a union or an employment-law advisor can help.

Frequently asked questions

May the employer take my company car away?

They can control the business use within their right to give instructions. But the permitted private use is a monetary benefit and part of your pay; it can only be withdrawn if this is validly reserved by contract or a recognized reason exists (for example a valid release from work). A withdrawal without grounds is impermissible.

What can I do if the private use is taken from me without justification?

Object in writing and demand continued use. If the monetary benefit is withdrawn from you wrongfully, there can be a claim to loss-of-use compensation or damages. In an ongoing dispute, the works council, a union or an employment-law advisor supports you.

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General information for self-help, not legal advice (RDG). In case of a high loss or uncertainty: contact a consumer advice center or a lawyer.