Q&As
If an employer provides a vehicle to an employee directly under an employee salary sacrifice scheme, without any separate contract with a vehicle dealership of finance provider, if that vehicle is defective can the employee rely on the Consumer Rights Act 2015 to seek a remedy from their employer?
Generally, it is assumed that the employer and car manufacturer/dealership will enter into a contract for the purchase or hire of the vehicle, on behalf of the employee. The employer will gain title (whether by ownership or rights in the lease/hire agreement with the car provider) to the vehicle. The employer will then permit the employee use of the vehicle in exchange for consideration under the salary sacrifice scheme. Such scheme will either be covered by the employment contract with the employee or a separate agreement. The employee may have the right to purchase the vehicle at the end of a specified term.
Before proceeding with any statutory claim relating to faulty goods, it is advisable that the relevant contracts are reviewed as they are likely to contain specific provision as to how to report
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