For those who want to start using company bicycles, a bicycle policy is a must-have. After all, in a bicycle policy you lay down all the important agreements between your organization and the employee leasing the bicycle. Why exactly is a bicycle policy so important and how do you draft one? You can read it here.
What is a bike policy?
A bicycle policy (or bicycle regulations) is a document where the employer can lay down the agreements when employees use bicycles. This is important when a company starts with bicycle leasing and even more so when the bicycle cost is passed on through the salary. The approval of a bicycle policy is done in the same way as the labor regulations. The signature of individual employees is not required in most cases.
Why is a bicycle policy important?
When starting a bicycle lease, it is important to keep an eye on the legal side. Elements that impact the employee's salary should be regulated in an appendix to the employment contract. However, you can lay out a lot of things in a bicycle policy.
What does a bicycle policy say?
In a bicycle policy, you can set out agreements between you and the employee who uses company bicycle through leasing or purchase. For example:
- Commuting: how often does the employee bike to work (often a minimum of 20%).
- What if the employee leaves the company?
- The maximum amount of the bicycle.
- Information on maintenance and repairs.
- Insurance, roadside assistance, accidents, vandalism and theft.
- How much bicycle allowance does the employee receive?
- ...
No idea what exactly to include in a cycling policy? When you start a bike plan through Joule, you'll receive a template that you can customize for your company.
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How do you establish a cycling policy?
Setting up a cycling policy is important for implementing a cycling plan. With these 7 practical tips, you can get started:
Tip 1: Clearly define which staff members are entitled to a bicycle
Define who is entitled to a bicycle. Under anti-discrimination laws, it is necessary to clearly define the group of entitled persons. The delineation must be objective and non-discriminatory.
Tip 2: Record arrangements for worst-case scenarios
To avoid future discussions, you can define in the cycling policy what happens in worst-case scenarios. For example:
- The employee's budget is insufficient to pay for the bicycle.
- The employee is on long-term sick leave.
- There is a suspension of the employment contract.
- The employee moves from a full-time to a part-time job.
- Early termination: the employee leaves the company before the end of the lease term.
For example, you can agree that if the budget is insufficient, you can bill the employee for the shortfall.
If the employee leaves the company during the lease term (36 months), there are three options:
- The employee purchases the bicycle for its market value at that time.
- The employee returns the bicycle upon payment of an administrative fee.
- The employee passes the bicycle internally to a colleague.
As an employer, you are free to expand or limit these options.
Tip 3: Describe procedures
Describe the steps the staff member must follow to enroll in a bicycle plan . Also clearly state what the insurance covers and what exemptions apply, whether partially or fully compensated by the employer. That way you avoid overflowing HR mailboxes and red-hot phones.
Tip 4: List the terms of use of the leasing company or bike partner
Your leasing company or bike partner will impose some obligations around the use of the bike. Communicate these rules in the bike policy so the employee is aware of them. Agreements around use can include, for example:
- caring for the bicycle like a good family man;
- report theft to the police;
- The obligation to secure the bicycle with an approved lock.
Tip 5: Describe commuting use and impact
State that the employee must use the bicycle regularly for commuting and verify this as well. For example, there is often a requirement that a minimum of 20% of the commute must be by bicycle. Without actual commuting, the bicycle will be taxed.
Tip #6: Don't forget the fines
As with a company car, it is important to note that fines due to traffic violations are passed on to the employee.
Tip 7: Determine bicycle allowance
A bicycle allowance is a mileage allowance that you as an employer grant to your staff members who make their commute by bicycle.
Meanwhile, in many sectors, bicycle reimbursement is mandatory. Even when not, such a reimbursement is a fiscally interesting way to encourage employees to live healthier lives.
As an employer, you determine the amount of the bicycle allowance. The maximum exempt amount (Tax year 2023, income 2022) is €0.25 per kilometer.
Contact us for more information
Do you have questions when creating a bike policy? Or would you like more information about starting bicycle leasing in your company? We would be happy to answer your questions in a no-obligation consultation.
