Cam an employer take out a benefit written on a employee contract without giving any compensation?
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Cam an employer take out a benefit written on a employee contract without giving any compensation?
I use a company car everyday to go to work. This is mentioned in my signed written employee contract for 4 years part of my benefits I can have a company car. My employer decided to take it from me starting January 1st without any compensation. They want to save money however there are no firing process at all with any other employee. I wonder if this is legal?
Asked on October 27, 2016 under Employment Labor Law, New Jersey
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
IF the contract (or any renewal of it) is for a definite period of time and that period has not expired (e.g. the current version of your contract does not expire until, say, June 30, 2017), then they are obligated to that contract and may not reduce compensation provided in it. If they do, you could sue them for breach of contract. But without an employment contract for a specified or defined period, which perid has not yet expired, your employer may change your compensation at will will, since this case, there is no (at least for this purpose) in-effect contract restricting what they can do); they can therefore take away the car without giving other compensation.
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