How to manage the grey fleet - and why you should!
The Coronavirus pandemic has made people nervous about sharing transport – and that includes company vehicles from a shared pool. As a result, many more employees are using their own vehicles for business purposes and it’s a trend that’s expected to continue.
The resulting downturn in business from the pandemic has seen many businesses resigning company cars in an attempt to reduce overheads. Instead of driving vehicles provided by the employer, many key workers in critical areas have been mandated to use their own cars in exchange for monetary expenses.
Managing the grey fleet is a legal requirement
In Europe, The European Framework Directive 89/391/EEC on health & safety of workers, requires that every employer undertakes a risk assessment. Duty of care, occupational health & safety, and road safety compliance are legal requirements in all EU member states. The European Transport Safety Council (ETSC) advises on how to manage the grey fleet and has published guidance: Managing Grey Fleet Safety – a short guide for companies whose staff drive their own cars for work.
In the UK, there are three laws applicable to grey fleet management: The Health & Safety at Work Act 1974, the Management of Health & Safety At Work Regulations 1999 and the Corporate Manslaughter Act of 2007.
Employers can be found liable for serious management failures that result in gross breach of duty of care, and this can relate to grey fleet cars, which must be managed as diligently as any other risk.
10 Tips for Managing the Grey Fleet
- Policy - have a grey fleet management policy in place and ensure employees who use their own vehicles agree to abide by it. Have it accessible online and to ensure they’ve read it and understand it, have them sit a simple exam.
- Risk Assessment - carry out a risk assessment noting the type and length of journeys that are being taken by grey fleet drivers.
- Vehicle specifications - have your grey fleet policy state what type of cars are suitable (or not) for grey fleet use i.e., don’t allow vehicles older than 7 years because they’re less fuel efficient, reliable and environmentally-friendly.
- Driver checking - have a driver licence checking process in place and check licences regularly for updated fines and infringements. Also, regularly check drivers’ fitness to drive.
- Management responsibility - decide who is going to manage grey fleet. Will it come under the responsibility of HR, Health & Safety, finance department?
- Permissions – make sure employees understand that they must seek permission before being allowed to use their own vehicles for business.
- Appropriate business miles – clearly explain what business miles are and are not and define the type of journeys allowed (grey fleet, for example, is a more costly option for journeys greater than 80 miles per day).
- Fraudulent expenses claims - have a clear policy and sound process management in place for mileage reimbursements so that you catch such claims early.
- Tracking - have a tracking system in place for tracking employee business mileage.
- Alternatives - explore the validity and cost-effectiveness of using alternative means of transport such as safe car hire, public transport, car-pooling schemes.
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