Many employees drive their own car at work. This lesson explains what the Labour Code says about it and how an employee's liability for damage works. It is a general overview. Always judge your own situation by your contract and the employer's internal rules.
Using a private vehicle
You do not have to use your own car just because the boss wants it. A private car is used for work only if you agree to it. Under § 157 of the Labour Code:
- If you use a private road motor vehicle at the employer's request, you are entitled for each kilometre to a basic allowance and compensation for the fuel used (§ 157(3)).
- If you use the car with the employer's consent instead of the designated public transport, you are entitled only to an amount corresponding to the public transport fare (§ 157(2)).
The difference is therefore fundamental: whoever requests the car pays the mileage. So have the agreement on using the vehicle and its terms (rate, insurance, who pays for servicing and damage) confirmed in writing.
Travel expenses in brief
A business trip has its rules in the Labour Code (§ 151 and following):
- A basic allowance per kilometre and fuel compensation. The law gives a minimum rate for a car, adjusted every year by a decree on the rates of the basic allowance and average fuel prices. You will find the current figures on the website of the Ministry of Labour and Social Affairs.
- Consumption is calculated from the data in the vehicle's registration certificate, which you show the employer (§ 158(4)).
- You prove the fuel price with a purchase receipt that shows the link to the trip.
- Other expenses (parking, toll, motorway vignette) are paid by the employer if they were necessary and you document them with receipts.
- You keep a logbook or travel order if the company requires it. Records protect you and the company.
Insurance
Compulsory third-party insurance covers damage you cause to others. Damage to your own car is covered only by comprehensive (own-damage) insurance, if you have it. Ask your employer whether and how the private car is insured for business trips, what it covers and what it does not. Do not give your insurer false information about the purpose of the journey. For a company vehicle, follow the company's instructions.
The employee's liability for damage
Under § 250 of the Labour Code, an employee must compensate the employer for damage caused to it by culpable breach of duty when carrying out work tasks. The employer must prove fault (§ 250(3)).
Important limits under § 257:
- Damage caused by negligence must not exceed four and a half times your average monthly earnings before the breach of duty (§ 257(2)).
- This limit does not apply if the damage was caused intentionally, while drunk or after misusing other addictive substances. Then you are liable in full.
- If the employer also contributed to the damage, you compensate only a proportionate part according to your share of fault (§ 257(4) and § 250(2)).
- Actual damage is compensated, usually in money.
Fines for traffic offences (speeding, parking) are your personal responsibility and the employer does not have to pay them for you. For larger damage or a dispute, turn to a trade union, a lawyer or the labour inspectorate. Do not sign anything under pressure.
Summary
- You use a private car at the employer's request with a right to mileage and fuel (§ 157(3)).
- Keep the agreement and terms in writing; check the insurance.
- For damage caused by negligence you pay at most 4.5 times your average monthly earnings (§ 257), and in full if intentional or while drunk.
- The employer must prove fault.