An employee has put the wrong fuel in the company van – who pays?

It is an easy mistake to make, but potentially an expensive one. An employee takes a company van to the petrol station and accidentally fills a diesel vehicle with petrol, or vice versa. The vehicle may need recovered, the fuel system drained and, if it has been driven, there could be further damage.

For the employer, the immediate reaction might be “They made the mistake, so we’ll deduct the cost from their wages.” But before doing that, check what your contract and policies say. Employers cannot simply deduct money from an employee’s wages because the employee has caused the business a financial loss.

Generally, there needs to be a lawful basis for the deduction. For example, the employee’s contract may specifically allow deductions for damage, loss or costs caused by their actions, or the employee may have previously agreed in writing to the relevant deduction.

If your contract or policy does not give you the right to make that deduction, taking the money directly from their wages could result in an unlawful deduction from wages claim.

You may have a detailed company vehicle policy covering driving licences, speeding fines, accidents, vehicle checks and personal use, but nothing explaining what happens if an employee causes avoidable costs through misfuelling, negligence or damage. A vehicle policy could make clear the employee’s responsibilities when using a company vehicle and, where appropriate, the circumstances in which the business may seek to recover costs.

An informal conversation, reminder or additional instruction may be sufficient for a genuine first mistake. Where there is evidence of negligence, repeated incidents or a failure to follow clear company procedures, a more formal response may be appropriate. You might conclude that an employee has failed to take reasonable care of a company vehicle and that this should be addressed under your Disciplinary procedure.

An employee causing the cost does not automatically mean you can take it from their wages. Check what your contract and policies allow before making any deduction, and if they don’t cover the situation, review them for the future.

Contact us at enquiries@121hrsolutions.co.uk and we can discuss any further queries you may have on this subject.