Letting employees drive company cars: authorisation and fines

Why you need an authorisation at all

The car is registered to the company, and an employee drives it. If they're stopped by a patrol, have an accident or need to cross a border, the first question is: are they allowed to drive it? The official authorisation answers that and links the car to a named driver in official records. Without it, the driver may face questions, and the company can end up responsible for things that could easily have been pinned to the right person.

Company car authorisation in Saudi Arabia

For individuals, the Absher platform lets you authorise someone else to drive your car or add them as the actual user, and any fee is shown in the service before you confirm. For companies, the business's vehicles are managed from its Absher Business account, where the authorisation or actual-user service available to the business, and its steps, are shown to whoever holds that permission.

Common conditions before authorising

1. The vehicle registration (istimara) is valid
2. The employee holds a valid licence of the right class (private for passenger cars)
3. The full conditions are shown in the Absher service before you submit

Duration and cancellation: set a period that fits the contract, and cancel the authorisation on the day the employee leaves or the car moves to someone else. This is the step people forget most, leaving the car linked to someone who has left.

Read next: Istimara renewal: requirements and reminders

Driving power of attorney in Egypt

In Egypt a driving power of attorney issued at the Real Estate Registration and Notarization office is commonly used: the company (through its legal representative) grants it to the driver, listing the car details and the duration. The documents the company needs and the fees are set by the notary office; notarisation services are listed on Digital Egypt (digital.gov.eg). The driver carries a copy with the car licence and their driving licence. Some companies rely on an internal authorisation letter on company paper, but a notarised power of attorney carries more weight if questions arise.

Company car fines: who pays?

A fine is recorded against the car or its owner; it doesn't automatically land on the driver in every case. So the company must decide internally who bears each type and write it into the car policy and the employment contract. The split we find sensible:

Read next: Company car policy template (12 clauses)

How to prove who was driving on the day

A fine sometimes arrives weeks later. If the car moves between drivers, you won't remember who had it on the 12th of last month. Three records settle it:

1. A signed handover form with date and time for every change of driver.
2. One assignment log: car, driver, from date, to date.
3. Daily entries (fill-ups, odometer) under the name of whoever logged them.

In Sayarti+ Business each car is assigned to one or more drivers, and every entry records who logged it and when. Log the fine in the car's fines list with the amount, date and discount deadline if there is one, and you get a reminder before it ends. Fines count once in reports, as fines, never twice as an expense too.

Quick checklist when a new employee gets a car

• Check their licence and its expiry date (the date only; no need to store the number)
• Issue the authorisation or power of attorney and note its end date
• Have them sign the car policy
• Handover form with photos, odometer and fuel
• Assign the car to them in your log the same day
• On their last day: cancel the authorisation, take the car back with a form, review fines

Sayarti+ is an independent app, not affiliated with any government entity. This guide is general information; the binding procedure and fees are on the official portal.

Sayarti+ team

We write practical guides on car costs, maintenance and company cars. Every number has a source.

From Sayarti+ — sayartiplus.com · Not affiliated with any government entity