Your questions answered: Is an employee entitled to receive a car allowance during long service leave?

By Portner Press on October 2nd, 2019
  1. Employee Management
  2. Leave Provisions

We have an employee on long service leave for six weeks.

The employee feels that they are still entitled to receive a car allowance whilst on long service leave.

I was of the understanding that it is not included, as the car allowance is variable dependant on the kilometres travelled and is listed in their contract of employment separately to their salary.

It is however not noted in the contract anywhere that the car allowance will only be paid whilst undertaking work duties. If this is an issue, would this mean that we need to pay the car allowance during other types of leave?

If the car allowance is part of the employee’s salary package then it would likely need to be paid during periods of leave. If the car allowance is simply reimbursement for expenses incurred during the course of employment, then this would not be the case.

You would need to review the employee’s employment contract to confirm this. It is possible, however, that you may be legally obligated to pay the car allowance during the employee’s periods of leave.

Employment law questions come up all the time

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When the precise answer is difficult to find?

Why not try the employment lawyers at Portner Digital?

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