Cam an employer take out a benefit written on a employee contract without giving any compensation?

UPDATED: Sep 30, 2022

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Cam an employer take out a benefit written on a employee contract without giving any compensation?

I use a company car everyday to go to work. This is mentioned in my signed written employee contract for 4 years part of my benefits I can have a company car. My employer decided to take it from me starting January 1st without any compensation. They want to save money however there are no firing process at all with any other employee. I wonder if this is legal?

Asked on October 27, 2016 under Employment Labor Law, New Jersey


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

IF the contract (or any renewal of it) is for a definite period of time and that period  has not expired (e.g. the current version of your contract does not expire until, say, June 30, 2017), then they are obligated to that contract and may not reduce compensation provided in it. If they do, you could sue them for breach of contract. But without an employment contract for a specified or defined period, which perid has not yet expired, your employer may change your compensation at will will, since this case, there is no (at least for this purpose) in-effect contract restricting what they can do); they can therefore take away the car without giving other compensation.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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