Circular Regarding Launching of New Vehicle Policy

A circular email regarding the launching of a new vehicle policy for the employees is a notification by the employer and is addressed to the employees of the organization. The circular can be in the form of a letter, email, notice, or memorandum. In this circular email, the employer notifies the employees about the launching of a new vehicle policy. In addition, he also states the advantages and effects of the new policy on the employees as well as informs them that the new policy has completely replaced the old one.

The transport benefits are one of the components of the fringe benefits, and hence, need to be enticing enough to keep the employees loyal to the organization. In order to facilitate, organizations, often, design attractive and practical vehicle policies for their employees. It can include free transport for to and fro traveling for work, office transport for official meetings, travel allowance, etc.

If an organization decides to bring a modification to the old policy or launch a new vehicle policy, it needs to formally inform and communicate to the employees about the change. For notification purposes, when a circular mail is prepared, its content and length may vary in different scenarios. Some of the factors that may affect the included information are:

  • The implications of the new policy for the employees.
  • The priorities of the organization.
  • Problems with the old policy.
  • The presence of unions, which might affect the implementation of the new policy, etc.

However, generally, the following details are included in such circular mails:

  • Date.
  • Addresser information.
  • Employer information.
  • Notification about the new policy.
  • Details of the new policy.
  • State the invalidation of the components, few, or all, of the old policy.
  • Benefits and effects (both positive and negative) of the new policy on the employees.
  • Effective date of the launch of the new vehicle policy.
  • Show value of the employees to the organization.

As a circular email is a formal communication directly from an employer, it helps in the clarification of any probable misunderstandings, that may arise in reference to the new policy. In addition, the employer tries to convince the employees, that the new policy would prove to be more beneficial for them as compared to the old one. However, it is important that the employer clearly states that the benefits related to the old policy are no longer applicable.

Sample Email

Dear employees,

It is to inform you that our company ABC Limited has decided to launch a new vehicle policy, which will be effective from 1st October 20XX.

We value our employees like our assets, and we always try to facilitate them in the best manner possible. In view of that, we are offering free transport to our employees. We have bought few vans and hired few drivers. Any employee, who wants to avail of this facility can contact the HR department.

However, this new policy has replaced the old policy of allowance for transport. If any employee is going out of the city for official work only he will be getting a travel allowance, and within the city traveling there is no allowance anymore. Nevertheless, any employee who wants to benefit from this new transport facility can do so without any charges.

We want you to come fresh, without driving in the peak hours. In addition, we have launched this new policy to help you save your fuel cost.

Our employees are our biggest resource.

Thank you!


Martha Watson.

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