Do you have a grey fleet?
If your business allows employees to use their own vehicles for business journeys, you’ll have a grey fleet. This includes your cash for car arrangement, vehicles being hired outside your company hire car arrangements or simply their privately owned vehicle used for work journeys. If you have a grey fleet, you’ll need a grey fleet policy.
What is a grey fleet policy?
The grey fleet policy should give your expectations on how your employees manage business journeys using their own vehicles. This should include clear responsibilities and specific information relating to vehicles, the driver and journey planning. The grey fleet policy should cover:
There are keys steps that your employee should take in respect of the vehicle they are using:
- The vehicle must be roadworthy and comply with relevant road traffic laws
- The MOT and service history must be up to date
- Your organisation may decide on minimum safety standards e.g. NCAP ratings
Your employee must be fit to drive on behalf of your business. This requirement includes having adequate eyesight standards and being free of health issues that could compromise driving competence.
- The driver must hold a valid and relevant driving licence. The licence should comply with your minimum standards in terms of points and endorsements.
- The car insurance policy of your employee should include business cover.
- Your employee should also be competent in carrying out a check on their vehicle to ensure that it is roadworthy.
Your employee must complete a risk assessment for the journey. The risk assessment should consider:
- The length of the journey and fatigue management.
- Weather conditions
- Accident hotspots such as schools and colleges
Your employees need to know what constitutes driving for work. An employee drives to the supermarket to pick up sandwiches for a working lunch with a client. Your receptionist drives to a post box on her way home to post business mail, are they making business trips? Yes, they are! You can download our Grey Fleet Test and gain more information.
Deciding On Grey Fleet Travel
Is the journey necessary? Public transport can be a good option. Sometimes a conference call can be a useful substitute and Zoom can be a useful tool for virtual meetings.
You will find that longer journeys in a grey fleet vehicle will cost more than using a hire car if you pay 45 pence per mile to your employee. Setting a limit on grey fleet mileage per day can therefore be a money saver.
Grey Fleet Management For Managers
Managing grey fleet driving activity takes alot of work. Managers need to be aware of what constitutes driving at work. A manager must ask a number of questions when a team member is planning to make a grey fleet journey. Has there been a check on the employees licence in the last year? Have they got business cover on their insurance policy? Have they checked that their car is roadworthy. Is the journey necessary?
All the requirements on the driver and the vehicle need to be checked by their manager on at least an annual basis. Records of the checks need to be retained too. Payment of travel claims can also be held back until drivers have complied with requirements in terms of licence checks, business insurance cover, provision of MOT certificate details etc.
Your managers will need a grey fleet policy to follow and they should have key performance indicators in respect of grey fleet management. This could relate to the timeliness of their checks on your grey fleet drivers. The Health and Safety At Work etc Act 1974 applies to employees when they are driving for work. As does corporate manslaughter legislation. Any investigation of an accident involving an employee driving a grey fleet vehicle will expect to see a robust grey fleet policy and management system.