The French labor law specifies the cases in which an employer may reimburse fuel costs when an employee uses his or her own vehicle. Such reimbursement by the employer in the form of a “fuel allowance” or “transport allowance”, covering all or part of the fuel costs, is only available to employees :
- whose home or workplace is located outside an urban transport area AND the Ile-de-France region;
- for whom the use of their personal vehicle is essential for journeys between home and work, due to their particular working hours, which do not allow them to use public transport.
⚠ Please note: when the distance from the employee’s home and the use of his or her personal vehicle are due to personal convenience, the employee is not entitled to reimbursement of fuel expenses by the employer.
The terms of reimbursement may be modified by the employer in a way that is more favorable to employees. However, these must be specified in the CBA or the employer’s unilateral decision.
Rules for the employer when setting up transport allowance to cover fuel costs
When an employer sets up a scheme to reimburse fuel costs:
- it must be applied in the same way to all employees who qualify for it;
- the employer must be able to justify the payment of fuel expenses with supporting receipts.