Company cars and new rules of reckless driving

New rules of reckless driving have been implemented in the Danish Road Traffic Act as of March 31, 2021.

The new rules make confiscation of company cars – as well as leased cars – possible in case of reckless driving, which, among other things, include:

  • Driving with a speed that exceeds the speed limit by more than 100 pct. when driving over 100 km/h.
  • Driving with a speed of 200 km/h or more.
  • Drink-driving with a blood alcohol level over 2,00.

The Danish police can confiscate any car that has been used for reckless driving irrespective of whether the car is owned by the reckless driver or not.

The Danish police have already confiscated numerous cars enforcing the new rules. More than half of the confiscated cars were driven by others than the owner of the car.

Take precautionary measures as a company offering company cars

The new rules of reckless driving mean that employers offering company cars will be liable for all expenses for damages on the car and expenses related to a confiscation of the company car in consequence of reckless driving.

Thus, it is recommended that the employee is introduced to an addendum to his/her employment contract in which the employee agrees to be personally liable for any damages in consequence of reckless driving.

A declaration should always be devised for company cars having yellow or white/yellow registration plates. This way, the employee will be liable for damages in consequence of reckless driving and tax or VAT claims in connection with an employee’s unlawful use of a company car.

In any case, it is a relevant time for an employer to review the use of company cars and agreements related to it.

We can assist your company with advice regarding your company cars.

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