Labour Relations Act 

The rights, duties, and risks of using company benefits.

The line between professional tools and personal convenience is often blurred, creating a set of rights, duties, and legal risks. Company benefits like vehicles, laptops, and fuel cards are generally provided to boost productivity and their use requires accountability from employees, consistency from employers, and overall fairness. If these principles are not upheld in the workplace, the use of company benefits can cause friction and lead to disciplinary disputes. 

What are considered company benefits and what can I use them for?

Company benefits are generally non-salary tools or perks provided to employees to help them perform their job effectively or to enhance their total compensation package. While they might feel like personal belongings over time, it is vital to remember that they remain the property of the employer.

Common examples of company benefits include:

>  Company vehicles: usually provided for business travel, site visits or client meetings.

>  IT equipment: laptops, monitors, and specialised software.

>  Fuel and Travel allowances: these are used to cover work-related costs and expenses.

>  Mobile devices and data: cellphones, tablets and data packages for staying connected.

Can I use them for personal purposes?

Employees need to carefully review their employment contracts and internal company policies to understand the specific rules of engagement. Primarily, these benefits are intended for work-related purposes. However, some employers allow limited personal use but this is where many employees get caught. For example, you may be allowed to use a company phone for personal calls but only within a monthly limit. 

Possessing these tools is not just for convenience, but employees have to be responsible and accountable. These tools also require active management and administrative diligence from employers. This means that employers have to set a limit on use and allowances and if the employee exceeds those limits, it may result in the employer deducting the excess from the employee's salary or disciplinary action if the overuse is excessive or repetitive. Sending a quick message to a manager can prevent a disciplinary issue later. It is important to never assume that because a colleague uses a company car for school runs, it is officially permitted for you to. Therefore, as a rule of thumb, if it is not clearly allowed, do not assume that it is.

Can I use the company benefits in case of emergency or exceptional circumstances?

A recent Labour Court decision provides a modern lesson on how the law navigates these issues, emphasising that while rules are necessary, a balance must be struck between fairness, discipline, and context in the workplace. In this case, an employee was dismissed for using a company vehicle without permission to help a stranded motorist with a flat tyre. The employee, a long-serving supervisor, had taken the vehicle during a night shift to assist someone in need.

The employer argued that this was unauthorised use of a revenue-generating asset and amounted to a serious offence justifying dismissal. However, the matter went to the CCMA, which found the dismissal substantively unfair, and this finding was later upheld by the Labour Court.

The Labour Court held that while the rule against unauthorised use was important, the employer did not clearly and consistently apply the rule in practice. The lines between permitted and prohibited use had become blurred. Crucially, the employee's actions did not destroy the trust relationship or make continued employment intolerable. Simply put, the employee broke a rule but not in a way that justified losing their job.

Under the Labour Relations Act 66 of 1996, employees are protected from unfair labour practices and dismissals, requiring any termination or dismissal to be procedurally and substantively fair. This means that not every breach of a workplace policy justifies a dismissal.

Employees have a fundamental right to be treated consistently and to understand the specific consequences of their actions. However, it is important to remember that company benefits are privileges designed to facilitate work, not personal assets. Whether it is a company car or a data allowance, these tools come with a legal duty to act in good faith and in the employer's best interests.

 What can I do if I feel the employer acted unreasonably?

If you believe that your employer has acted unreasonably or inconsistently in imposing the sanction for your breach of the company benefits policy, your first step should be to formally appeal the sanction internally, using the company's grievances or appeal procedures. If the matter remains unresolved, you can refer a dispute to the CCMA or the relevant bargaining council within 30 days of the dispute arising. If the sanction is found to be disproportionate to the offence, the CCMA has the power to overturn the decision and order for reinstatement, or award financial compensation.

Conclusion 

To maintain a healthy employment relationship, employees should prioritise transparency and strictly follow company policies. Misuse of benefits can lead to severe consequences, ranging from formal warnings to the repayment of losses, or even dismissal in cases of gross negligence or fraud. However, the Labour Court judgment indicated that the law requires proportionality, as the employee had a clean record and caused no actual harm to the business, reinstatement was therefore deemed the appropriate remedy. Employers also bear a significant burden of responsibility and they must ensure that workplace rules are clear, accessible, and enforced without bias.

Before using a company asset or benefit for anything outside of its standard scope, employees should always ask if their employer would reasonably approve and get the necessary consent. That simple moment of reflection can prevent a well-intentioned act from turning into a costly legal dispute.

Did you know…If an employee is dismissed, the dismissal has to be substantively and procedurally fair.