WA Car Accident - Pay Employer More than the Excess?

[Enigmatic1]

Hi.

I had a car accident with the work car a few weeks back. It went through the company insurance. My employer has come back to me saying I have to pay more than the excess because of what is stipulated in my employment contract. Is this legal?

 

[Sophea]

If you agreed to it in your employment contract then they can more than likely enforce it. There is a contractual principle that stipulates that clauses which penalise a party for breaching the contract by requiring them to pay a specified sum that is extravagant and unconscionable in comparison with the greatest loss that could conceivably be proved to have followed from the breach, are not enforceable at law.

How much are they asking you to pay? and how much was the excess?

 

[Tim W]

Well, what does it say in your contract?