Traffic fine at work: who has to pay it?

A traffic fine incurred during work first lands in the mailbox of the registered owner – in the case of a company or lease car, this is the employer or leasing company – but the one who ultimately bears the fine is the offender themselves, so usually the employee. In many cases, an employer may recover the fine, but cannot simply deduct it from wages: written agreements are required for this, and legal limits apply. Below, we explain the situation for each case, the tax implications, and how to avoid hassle with a proper arrangement.

Who receives the traffic fine: the vehicle owner

The fine is first sent to the registered owner of the vehicle. This is called license plate liability. If an employee drives their own car to a client and is speeding, they receive the fine themselves. If they drive a company car or a leased vehicle, the fine is sent to the employer or the leasing company, even if they were not behind the wheel themselves.

the fact that the employer receivesdoes not automatically mean that he has to bear. It is an administrative process: the vehicle owner is responsible for handling it, but who ultimately pays the costs is a separate question.

In principle, fines are for the offender

A traffic fine is a sanction and is, in principle, the responsibility of the person who committed the offense. If the employee was speeding, he is basically the one who ought to bear the fine. If the employee receives the fine directly at home, he pays it himself.

If the employer receives the fine because the car is registered in their name, they can in many cases recover it from the employee. However, this is not a license to simply deduct the amount from the salary. Strict conditions apply to this, which we discuss below. Also bear in mind that the employer must be able to demonstrate who was driving at the time; proper mileage records are therefore indispensable.

When does the fine become the employer's responsibility after all?

The fine remains the responsibility of the employer if the employer provoked or encouraged the violation himself . Consider an employee who receives a virtually impossible assignment to quickly deliver a shipment before the customer closes, or a driver who receives explicit instructions to drive faster. In such cases, the employer cannot shift the fine onto the employee on the grounds of good employment practices

That does not apply without limitations. In the case of reckless or intentional driving, an employee cannot simply hide behind their employer's instructions. Anyone who crosses the line significantly bears personal responsibility, even if there was pressure from work.

Are you allowed to offset a traffic fine against your salary?

This is where employers most often make mistakes. Simply deducting a fine from the salary is not permitted. For offsetting against wages during employment, it is in principle required that:

• there is a written agreement in the employment contract or the personnel handbook, or the employee consents to the deduction;
• the employee has been informed in advance about this arrangement;
• the withholding respects the legal limits

Those limits are important. The statutory minimum wage is not subject to set-off: you may therefore only set off the portion of the wage that exceeds the minimum wage, and the protected amount ( from seizure) must be respected. Set-off must never result in the employee falling below that lower limit. Without clear agreements, wage withholding for a traffic fine is generally unlawful, and judges scrutinize this strictly. At the end of employment, an employer often has slightly more leeway to set off outstanding claims against the final settlement, but even then, the statutory limits continue to apply.

Practical example: how does the story play out in practice?

A delivery service receives a speeding ticket in the company's name. The trip log shows that a regular driver was on the road that afternoon; nothing was provoked, and it involved a routine speeding violation. The employee handbook states that fines for normal violations are recovered from the driver. The employer informs the driver, shows the fine and the trip details, and deducts the amount from the next paycheck — but only to the extent that the net wage does not fall below the minimum wage as a result. Had that same driver incurred the fine because he was ordered to run a red light, the fine remains with the employer and nothing may be withheld. The difference, therefore, lies not in the fine itself, but in the prior agreements and the circumstances of the trip.

Paying traffic fines has tax implications

If an employer pays an employee's fine, this cannot simply be done tax-free. From a tax perspective, in many cases, this constitutes the of additional wages . The main point:

• The fine is in the employee's name and the employer reimburses it: this is mandatory wages for the employee. It cannot be included as final levy wages under the Work Expenses Scheme (WKR).
• The fine is in the name of the employer and is recoverable, but is not recovered: the employee then enjoys a benefit that qualifies as wages. The employer can designate this as regular wages or as final levy wages within the WKR.
• If the fine is not recoverable (for example, because the employer provoked the violation): in that case, no taxable wages arise for the employee.

Moreover, traffic fines themselves are not deductible from profit, and the VAT is not reclaimable. This concerns the general tax guidelines; always have the exact treatment reviewed by your payroll administrator or tax specialist, as rules and amounts may change.

Make clear agreements about traffic fines

If employees drive frequently for work, it is often impractical to recover every fine from the employee. You record the agreements in an employment contract or in an overarching fine policy, for example in the employee handbook . Common choices include:

• agree that the employer will bear a limited number of fines per year ;
• the scheme to specific offenses or amounts;
• exclude reckless and intentional driving from the scheme;
• Determine how and when settlement takes place, within legal limits.

If you include such an arrangement, you waive your right of recourse to that extent: you may not simply offset fines covered by the arrangement against wages or the final settlement. Clear agreements prevent disputes as well as an unexpected tax or employment law setback. For the broader context of rights and obligations regarding personnel, our page on employment law a good starting point.

Checklist: a traffic fine system that actually holds up

• Record the arrangement in writing and inform employees about it in advance.
• Describe which violations are and are not recovered (think of parking, speeding, recklessness).
• Refer to the legal limits: the minimum wage and the attachment-free amount always remain applicable.
• Link the scheme to a comprehensive trip log, so that the driver is verifiable.
• Coordinate the tax handling with your payroll administrator or tax advisor.

Frequently asked questions about traffic fines during working hours

Who pays the traffic fine for a company car?

The fine is first sent to the vehicle owner, usually the employer or leasing company. In principle, however, the fine is the responsibility of the offender, i.e., the employee. The employer can often recover the fine, but only under certain conditions and within legal limits.

Is my employer allowed to deduct a traffic fine from my salary?

Not just like that. In principle, deductions from wages are only permitted if agreed upon in writing or if you consent to them. Furthermore, the statutory minimum wage is not subject to set-off: deductions may only be made from the portion of your wages above the minimum wage, and the protected amount (the amount exempt from seizure) must be respected.

What if I was speeding due to an instruction from my employer?

If the employer provoked or encouraged the violation, for example by assigning a virtually impossible task, he cannot recover the fine from you on the grounds of good employership. This does not apply in the case of reckless or intentional driving.

Is it tax-free if my employer pays my fine?

Usually not. If the employer pays a fine in your name, that is mandatory wages. If a recoverable fine in the employer's name is not recovered, it is a taxable benefit that may be designated via the work expenses scheme.

Do I need to keep a log of my journeys?

To recover fines, it is important that it is clear who was driving. A good logbook of journeys helps the employer identify the driver and prevents disputes afterwards.

May an employer recover a parking fine or additional parking tax assessment?

The general rule applies here as well: the costs are in principle for the offender, and recovery or set-off is only possible within the same conditions and legal limits. It is best to explicitly stipulate this type of cost in your penalty policy so that it is clear in advance what will and will not be recovered.

Need help with a penalty settlement or employment dispute?

A watertight arrangement for traffic fines prevents unnecessary disputes with your employees and tax surprises. MKB Juristen drafts a suitable arrangement for you or reviews your existing employment contract and employee handbook. If a conflict regarding a withheld fine is already ongoing, our employment along with you — also see how our legal assistance works. Schedule a no-obligation intake meeting and know where you stand within a single session.