For a long time, the company car was considered a standard extralegal benefit. But employee expectations are shifting, rules are tightening, and employers today need to think about mobility in a more structured way. In this context, the car policy plays a central role.
The term is widely recognised but often misunderstood. What should it contain? What does it actually do? And why does it become indispensable when a company wants to introduce a mobility budget?
This article walks you through it step by step. By the end, you’ll know what a car policy is, what it must cover, and why updating it now is a strategic move.
What a car policy actually contains
A car policy is more than an administrative document. It clearly defines the rules around how company cars are allocated and used within your organisation.
It covers who is entitled to a company car, the conditions of use, the rules around private use, and the responsibilities of each party.
Without formalised rules, grey areas multiply. That creates misunderstandings internally, and complications during inspections by the social or tax authorities.
Contrary to a common assumption, a car policy is not reserved for large companies. As soon as an organisation provides a company car to one or more employees, formalising these rules is strongly recommended. And if you’re considering introducing a mobility budget, a car policy goes from recommended to legally required.
The essential elements of a modern car policy
An effective car policy is more than a few usage rules. It is the reference framework for managing company vehicles and must cover several key areas. It typically covers:
- the job categories eligible for a company car
- the conditions of use, including private use
- the rules applicable in the event of illness, extended absence, or departure from the company
- the distribution of responsibilities in the event of damage, accidents, or fines
- charging rules for electric vehicles: at home, at the workplace, or via public charging stations
That last point is becoming increasingly important. As fleets progressively electrify, charging-related questions are taking up more space in mobility management. Yet many car policies still lack a clear framework on this, or rely on rules that are already outdated.
Another frequently overlooked element: precise allocation criteria by job category. These are essential for correctly calculating the Total Cost of Ownership (TCO), a key input when setting up a mobility budget.
In short, an up-to-date car policy does more than govern company car use. It is also the foundation on which to build a modern, future-proof mobility strategy.
Why updating your car policy is now a priority
A car policy is no longer just good HR practice. It has become an essential requirement for any company that wants to introduce a mobility budget.
The law of 17 March 2019 is clear on this: to offer a mobility budget, an employer must have a formal framework defining company car allocation rules. Without a car policy, introducing a mobility budget is not possible.
But that’s not the only reason to act now. The federal government is currently working on an extension of the scheme. According to the preliminary draft law approved by the Council of Ministers on 9 January 2026, the mobility budget would become mandatory:
- from 1 January 2027 for employers with 50 or more employees
- from 1 January 2028 for employers with between 15 and 49 employees
- employers with fewer than 15 employees would remain exempt
This is a preliminary draft law. The legislative process is not yet finalised and certain details may still change. For the latest updates, visit the official mobility budget website.
One thing is certain: companies that act now have a head start. By updating their car policy today, they lay the foundation for a compliant, coherent mobility strategy that’s ready for what’s coming. Waiting means risking having to catch up under pressure when the new obligations come into force.
How to prepare your car policy for the mobility budget
The good news: in most cases, you don’t need to start from scratch. But a thorough update is often necessary to make sure your car policy meets current and future requirements. Here are five key areas to focus on.
- Clarify your allocation criteria. Which roles are entitled to a company car, and on what basis? These elements need to be clearly defined. They form the basis for calculating the Total Cost of Ownership (TCO), a core parameter of the mobility budget.
- Set rules for charging electric vehicles. Who covers the costs? What takes priority: charging at home, at the workplace, or via public stations? A modern car policy needs clear answers to these questions.
- Define the conditions of private use. Can the car be used outside working hours? By household members? Abroad? The more explicit the rules, the less room there is for interpretation and disputes.
- Plan for exceptional situations. What happens in the event of long-term illness, suspension of contract, or departure from the company? These scenarios need to be covered to avoid uncertainty, especially when an employee opts for the mobility budget.
- Formalise everything in writing. The mobility budget operates within a precise legal framework. Setting it up requires a written agreement between employer and employee, annexed to the employment contract. Informal arrangements or verbal agreements are no longer sufficient.
Your car policy: the starting point for more flexible mobility
Far from being a simple administrative document, a car policy is today the foundation of a coherent, transparent, and future-ready mobility strategy. As the mobility budget takes on an increasingly important role in Belgian companies, updating your car policy becomes both a strategic move and a compliance measure.
At Monizze, we support employers at every stage: from TCO calculation to full mobility budget management.
