Parking Fine for a Company Car: Who Is Liable?

Parking Fine for a Company Car: Who Is Liable?

Parking fines for company vehicles create a complex situation involving the employer, the employee, and sometimes the leasing company. Understanding who is liable and how the process works can save you money and stress.

Who Is the Registered Keeper?

The first question is who is the registered keeper (shown on the V5C) of the vehicle:

• Company-owned vehicles: The company is the registered keeper
• Leased vehicles: The leasing company is usually the registered keeper
• Hire purchase vehicles: The finance company may be the registered keeper until the final payment
• Personal contract hire (PCH): The leasing company is the registered keeper
• Employee-owned vehicles (used for work): The employee is the registered keeper

The parking charge will initially be sent to the registered keeper.

Council PCNs: The Process

When a council PCN is issued against a company vehicle:

1. The council sends a Notice to Owner (NtO) to the registered keeper (the company or leasing company)
2. The registered keeper can either:

- Pay the fine

- Appeal (make representations)

- Transfer liability by identifying the driver

Most companies will identify the driver (the employee who was using the vehicle) and transfer liability to them. The council then reissues the NtO to the named driver.

Private Parking Charges: The Process

For private parking charges on company vehicles:

1. The operator requests keeper details from the DVLA
2. The charge is sent to the registered keeper
3. Under POFA 2012, the keeper can transfer liability by identifying the driver

Companies have the same right as individuals to name the driver and transfer liability.

Employer vs Employee: Who Actually Pays?

This depends on the company's internal policy, not the law. Common approaches:

Employer pays all fines: Some companies (particularly those with large fleets) pay all parking fines as a business expense. This is more common for fines incurred during work duties.

Employee pays all fines: Many companies have a clear policy that employees are responsible for all parking fines, whether incurred during work or personal use. The company identifies the driver and transfers liability.

Split responsibility: Some companies pay fines incurred during work duties (e.g., a delivery driver who could not find legal parking) but require employees to pay fines from personal use.

Salary deduction: Some companies pay the fine and then deduct it from the employee's salary. This is only legal if the employment contract allows it or the employee agrees in writing.

Legal Position: Employment Law

Key employment law points:

1. Your employer cannot force you to pay unless your employment contract or a separate agreement gives them this right. Check your contract and company vehicle policy.

1. Salary deductions require authority: Under the Employment Rights Act 1996, deductions from wages are only lawful if:

- Required or authorised by statute

- Authorised by a term in the contract

- The employee has given prior written consent

1. Unfair deductions: If your employer deducts a parking fine from your salary without proper authority, you can bring a claim to an employment tribunal for unlawful deduction from wages.

1. Company vehicle policy: Most companies have a fleet or vehicle policy that addresses parking fines. Read this carefully. If you signed it, you likely agreed to be responsible for fines.

Fleet Management Companies

Many companies use fleet management services (Lex Autolease, ALD, Arval, etc.) that handle parking charge administration. The process typically:

1. The fine is sent to the leasing company (registered keeper)
2. The leasing company identifies the hiring company
3. The hiring company identifies the driver
4. The driver receives the fine plus an administration fee

Each step may involve an admin fee, which can make a minor parking charge significantly more expensive by the time it reaches the driver.

Admin Fees

Admin fees for processing parking fines through fleet management:

• Leasing company admin fee: £20-50 per fine
• Company admin fee: Some employers add their own fee
• Total additional cost: Can add £30-70 on top of the original fine

If you believe the admin fee is disproportionate, raise it with your employer or the leasing company. Some fees may be challengeable under the Consumer Rights Act 2015 if they are unfair contract terms.

Appealing a Company Car Parking Fine

You can appeal, but the process has extra steps:

1. Act quickly: Admin fees and delays from the transfer process eat into your appeal deadlines
2. Get the original PCN reference: You need the PCN number to appeal directly to the council or operator
3. Check the dates: Ensure the appeal deadline has not passed due to the transfer process. If it has, explain the delay in your appeal.
4. Appeal in your own name: Once liability is transferred, you appeal as the driver, not as the company

Special Cases

Parking during work duties: If you received a fine while carrying out work duties (e.g., attending a client meeting in an area with limited parking), your employer may be morally obligated to reimburse you, even if the policy says otherwise. Raise this with your manager.

Pool cars: When a company vehicle is shared between multiple employees, the company must maintain records of who was driving at what time. If they cannot identify the driver, keeper liability falls on the company.

Hire purchase and PCP: If the vehicle is on hire purchase or PCP, the finance company is often the registered keeper. They will transfer the fine to the person making the payments (the company or employee, depending on the arrangement).

Electric vehicle charge point bays: As more companies provide EVs, fines for overstaying at charge points are increasing. The same employer/employee liability rules apply.

Practical Advice for Employees

1. Read your company vehicle policy before accepting a company car
2. Keep records of where you park and any payments made
3. Act immediately when you receive a fine or notification; delays reduce your options
4. Check the PCN carefully; errors in the transfer process (wrong driver, wrong dates) can support an appeal
5. If the fine was incurred during work, tell your manager and request reimbursement
6. Do not ignore it because your company is "dealing with it"; follow up to ensure the appeal or payment is progressing

Practical Advice for Employers

1. Have a clear vehicle policy that addresses parking fines
2. Process fines promptly to preserve employees' appeal rights
3. Keep driving records for pool vehicles
4. Consider whether fines during work duties should be covered as a business expense
5. Make admin fees transparent and proportionate