Employees to pay their own speeding fines

Employers will be allowed to reclaim costs associated with speeding fines from their employees, so says the Dutch Supreme Court in a judgment handed down on 13 June 2008. The judgment has put an end to a period of uncertainty on the subject.

Under the Dutch Administrative Rules (Enforcement) Act (the “Mulder Act” ) that took effect in 1989, when speeding the person to whom a car is registered automatically receives the speeding fine, unless the driver was identified at the time, for instance upon arrest. This means that employers automatically receive speeding fines (if need be via the lease company) if employees exceed speed limits in a company car or company-leased car. This case revolved around an employer that demanded restitution for three speeding fines from one of its employees. Previously, the Court of Appeal in The Hague had held that employees were not liable for fines, except where an employee had been caught driving recklessly. The Court of Appeal ruled that recklessness is constituted only when exceeding the speed limit by more than 10 km/h (based on a speed limit of 50 km/h).

The Supreme Court set aside the judgment handed down by the Court of Appeal because the Mulder Act was not created for the purpose of the employer itself having to pay for the fine imposed on an employee. The Supreme Court also found that it would be unacceptable that if the judgment of the lower court was upheld, a fine imposed on an employee for offences committed in his/her own car would be for the employee’s account, while speeding offences committed in a company car would not. The Supreme Court ruled that in these events, an exception to the main rule would apply, meaning that from now on employers may demand restitution for speeding fines from their employees. However, the Supreme Court also pointed out that in such cases employers must pay the fines after all in accordance with good business practice, for instance if the employer had a hand in causing the offence.

For more information on the subject, please contact mr. Tanya van Nieuwstadt, Employment Practice.

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