TopicsTermination of employment Compensation and benefits Hiring and recruitment
- 04 Jan 2019
The royal decree of 16 December 2018 provides for a company car certificate which is necessary for you as employer to enable a new employee to correctly exchange his company car for a financial allowance. Please read below for more details.
The law of 20 March 2018 introduced a mobility allowance (the so‑called Cash for Car). This means that employees can exchange their company car, which they can also use for private purposes, for a financial allowance. If the employee wishes to exchange his company car, he must request this with his employer and he must have had his company car for a certain period of time prior to his request.
When an employee changes employer and wishes to obtain or keep a mobility allowance on the basis of the company car which he had at his disposal at his previous employer, the new employer must be able to verify if and since when the employee is entitled to a mobility allowance and what amount it is. To be able to do this, the cooperation of the previous employer is necessary.
As from 6 January 2019, an employer must provide an exiting employee with a company car certificate. This certificate contains the necessary information (e.g. the catalogue value of the company car which was put at the disposal by the previous employer) for a correct determination of the mobility allowance by the new employer.
> Action point
If you, as employer, offer a mobility allowance and/or company car to a new employee, then this employee must provide you with a company car certificate from his previous employer. Conversely, in the event of termination of the employment contract, you must provide the employee with such a certificate.