LawAnswers.com.au - Australia's #1 Legal Community

LawAnswers.com.au is a community of 10,000+ Australians, just like you, helping each other.
Ask a question, respond to a question and better understand the law today!
Join us, it only takes a minute:

NSW Involved in Car Accident - Car Insurance Excess Paid by Employee?

Discussion in 'Employment Law Forum' started by Shelda, 21 May 2015.

  1. Shelda

    Shelda Member

    Joined:
    20 May 2015
    Messages:
    4
    Likes Received:
    1
    Does a casual driver have to pay company car insurance excess when the car accident was their (the driver's) fault?

    Driver was picking passengers up and dropping off for company. Driver has not been paid for driving job because of this. They have driven twice and not been paid but told it's for the $800 excess.

    Is this legal under employment law?
     
  2. Sarah J

    Sarah J Well-Known Member

    Joined:
    16 July 2014
    Messages:
    1,314
    Likes Received:
    243
    Hi Shelda,

    I'm not completely understanding the situation so could you please elaborate the accident?

    Are you asking: if driver A (driving for a company, picking and dropping off passengers, during company time) was involved in an accident with another driver, can the company ask driver A to pay the insurance excess on the car? And refuse to pay driver A his/her wages?

    If so, has driver A taken a look at their employment contract (or service contract if they were an independent contractor)? What does the contact say about liability and indemnity for accidents or damage caused?
     
  3. Shelda

    Shelda Member

    Joined:
    20 May 2015
    Messages:
    4
    Likes Received:
    1
    Hi Sarah
    There was no contract given. The driver hit another vehicle whilst parking and picking up passengers.
    The Driver felt terrible so opted not to take payment for that job of picking up and dropping off. Was asked to do another job a few weeks later and not paid for it. Told that both Jobs are part payment for $800 excess. Now driver has been told that if they don' pay this they will have to pay $4,500 instead. Thank you
     
  4. Shelda

    Shelda Member

    Joined:
    20 May 2015
    Messages:
    4
    Likes Received:
    1
    This was drivers first Job for limousine company
     
  5. Sophea

    Sophea Well-Known Member

    Joined:
    16 April 2014
    Messages:
    2,300
    Likes Received:
    334
    This is usually an issue that is broached in the employment agreement.

    I don't believe there is any hard and fast law regarding this. Its possible that an employee who has an accident for which they are at fault while driving for work may be responsible for the damage caused to the employer's car. If the employer must pay an excess on the insurance policy, they may in some circumstances be able to claim it back from the employee. However I would say that such 'circumstances' would at least require having this term written into their employment contract so that they are aware of it.
     
  6. Sarah J

    Sarah J Well-Known Member

    Joined:
    16 July 2014
    Messages:
    1,314
    Likes Received:
    243
    Hi Shelda,

    I agree with @Sophea, there is no hard and fast rule.

    Things become blurry when there is no employment agreement providing for this situation. I would say, in this case, it becomes an ordinary situation where someone drove a car belonging to another and damaged it. In such a case, they should compensate the owner for damage caused by them. It is not unusual, even where there are employment contracts in place and in clear employee/employer situations, for the driver to pay a portion of the loss (whether this be from car accidents or traffic infringements) to the employer/owner.

    However, why will the price go up to $4,500? There should be a fixed/agreed price. If the increase is due to interest, it seems excessive. The driver should ask the employer for a written quote of how much they need to pay. Get the terms of the amount clear, in writing, and have the employer breakdown the cost.

    As for wages, if they are contributing toward the damage, then this should be clearly stated in a written agreement between the parties as a set-off.
     
  7. Shelda

    Shelda Member

    Joined:
    20 May 2015
    Messages:
    4
    Likes Received:
    1
    Driver has opted to pay $800 insurance excess under the condition that a signed agreement would be given claiming no further monies in regards to this matter.
    For future reference driver will make sure that a contract of employment is provided.
    Thank you for comments.
     
    Sarah J likes this.
  8. Sarah J

    Sarah J Well-Known Member

    Joined:
    16 July 2014
    Messages:
    1,314
    Likes Received:
    243
    Hi Shelda,

    Thank you for the update and I'm glad the driver will ensure that written contracts, or recordings of agreements, will be made before any work is taken in the future.
     

Share This Page

Loading...