Employee Eligibility

  1. All permanent employees and employees appointed on a fixed term basis of 24 months or longer are eligible to participate in the scheme, subject to Management approval.
  2. A prospective participant in the scheme must be employed for an uninterrupted period of not less than two years at the time of entry into the scheme. Participants who do not meet this requirement will be required to make a contribution toward the cost of the motor vehicle to be acquired on his/her behalf of not less than 15% of the vehicle's gross purchase price (including Value Added Taxation) or, alternatively and in exceptional circumstances only, this requirement will be waived but the monthly usage benefit, as defined in 6. below, will be limited to 15% of the employee's total remuneration package.
  3. Employees are precluded from participating in the scheme if the aggregate sum of the usage benefit and the sum of all repayments on loans from the University and garnishee or administration orders, exceed 20% of the employees' total remuneration package. This threshold will be reduced to 15% for participants with less than two years service who do not make a contribution toward the cost of the motor vehicle as in 2. above.
  4. Participants will be required to produce a valid unendorsed driver's licence prior to signing the Usage Agreement.

    Participation Thresholds and Limits

  5. Participation in the scheme, suitably evidenced by a duly concluded Vehicle Usage Agreement between the University and the employee, shall give rise to the use and possession of a vehicle in consideration for the employee's services. The value of the resultant benefit, known as the Usage Benefit, will be subject to specified maximum and minimum ("threshold") levels of participation as outlined in 6. below.
  6. The rental component of the monthly usage benefit shall not exceed 20% of the employee's total remuneration package per month (i.e. "Cost to Employer" excluding annual bonus) at the time that application to participate in the scheme is made. The rental component for participants who have been employed for a period of less than two years will be limited to 15% of the employee's total remuneration package unless the contribution referred to in 3. above is paid. (The monthly Usage Benefit comprises the sum of (1) the ABSA Fleet Services (AFS) rental; (2) insurance premium including policy administration fee; (3) the AFS monthly administration fee).
  7. Employees eligible to participate in the scheme may, in addition, elect to make use of the ABSA Fleet Services administered fleetcard facility. The use of the fleetcard shall be subject to certain conditions (more fully described in the Card Usage Agreement which must be completed by each participating employee) and also to the following maximum and minimum ("threshold") limits:

    7.1     Except as provided for in 7.2 below, monthly payments to be credited to an individual fleetcard and, in turn, to be available to cover the cost of fuel, maintenance and other permitted motor vehicle expenses, may not exceed 8% of the relevant employee's total remuneration packages referred to in 6. above;

    7.2     In the case of an employee whose total remuneration package is equal to or less than R4 375 per month, the monthly fleetcard payment shall be fixed at R350 per month;

    7.3    The minimum threshold below which use of the fleetcard facility will not be permitted is R350 per month.

  8. The respective limits will be reviewed periodically and may be adjusted by the Management Committee of the scheme. (This review will, inter alia, take cognisance of prevailing fuel prices, the standard monthly deduction provided in the Income Tax Act in respect of the deemed cost of fuel and maintenance used for private motoring purposes, the ABSA Fleet Services card fee and related transaction charges / levies, all of which are variable from time to time).

    Vehicle Eligibility

  9. New vehicles: subject to approval by ABSA Fleet Services.
  10. Second-hand vehicles: Irrespective of whether vehicles are to be purchased from a recognised dealer or privately, all second-hand vehicle applications must be approved by ABSA Fleet Services. An employee may select a second-hand motor vehicle, provided that such vehicle:- 

    10.1     was not more than three years old immediately prior to the commencement of the year in which it is to be admitted into the scheme. For the purposes of this clause, the age of a vehicle shall be determined by reference to the first day of January in the year that it was first registered as a new vehicle; and

    10.2     is subject to an ABSA Fleet Services specified warranty or a technical assessment by the Automobile Association of South Africa (AA).
    Application of Rules

  11. Queries regarding the eligibility of, or any matter pertaining to, a particular motor vehicle, whether new or second-hand, in contemplation of an employee's participation in the Scheme must be referred to ABSA Fleet Services, who shall have the sole discretion as to whether or not to approve the vehicle's acceptance into the scheme.
  12. Queries relating to the application, variation or possible waiver of the foregoing rules must be referred to the Director, Human Resources, whose decision regarding the eligibility or otherwise of an applicant to participate in the scheme shall be final.
  13. University Management reserves the right to carry out any credit and/or security certification that may be required.
  14. ABSA Fleet Services reserves the right to carry out a CIF credit check on participants who apply for the Fleetcard facility.

In the event of his/her driver's licence being revoked or endorsed the participant is required to advise Human Resources Administration immediately.

For further information contact the HRE Expert Centre or

Ishmael Sibiya
ABSA Vehicle Management Solutions
2nd Floor, The Ridge
La Lucia Ridge
Phone: 031 5667707/7700
Fax: 031 5662080

E-Mail: mailto:isibiya@absa.co.za

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