Grey Fleet Drivers

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What are Grey Fleet Vehicles?

Grey fleet vehicles belong to employees rather than the company for business purposes and travel. Grey fleet drivers drive their cars for business-related purposes and general personal use.

According to new research from TTC Group; Many companies have procedures and policies in place for driving company vehicles – whether company owned or company leased. However, just one-third of employers ask so-called grey fleet drivers to sign and adhere to a driving-for-work policy, or carry out vehicle and driver checks.

So, who is responsible for which element?

The employee is responsible for

  • Ensuring their vehicle complies with road traffic law,
  • Is in a safe and roadworthy condition
  • Is fit for purpose.
  • Obtaining copies and agreeing to the company Driving Policy

The employer should carry out 6 monthly / annual checks including

  • MOT validity
  • Insurance validity,
  • Breakdown provision
  • Licence checks – twice a year
  • Creation of Company Driving Policy to include Grey Fleet

TTC Group also found that many grey fleet drivers do not know what confirmations they must provide before driving for work, what is expected of them when on the road and what their responsibilities are going forward, all of which a good driving-for-work policy will outline. Businesses that fail to implement a robust driving-for-work policy, backed by training, are falling short of their grey fleet duty of care.

The Health and Safety at Work Act 1974 states that “it shall be the duty of every employer to ensure, so far as is reasonably practicable, the health, safety and welfare at work of all employees.” Employers have a duty of care, therefore, to their employees, no matter how small their grey fleet.

Furthermore, under the Corporate Manslaughter Act (2007), companies can be prosecuted for deaths of drivers resulting from work-related journeys where negligence is proven. If it can be demonstrated that senior management are responsible for a gross breach of duty of care resulting in death, penalties can be applied including unlimited fines and publicity orders.

Therefore it is important for organisations to be proactive in managing their grey fleet.

The benefits of managing duty of care include:

  • Reduced downtime,
  • An improved safety culture,
  • Improved public image and business performance,
  • Lower costs of staff replacements and sick pay.

While these benefits apply to the whole fleet, duty of care is often overlooked within the grey fleet.

Diligent management of the grey fleet,

  • Including accurate recording of mileage and expense claims, can prove invaluable in the event of an HMRC audit.
  • Grey fleet vehicles tend to be older
  • Less well maintained, thus increasing the risk to your staff.
  • Newer cars have more advanced safety features such as airbags and ABS, and higher NCAP1 safety ratings.

It is essential that the organisation can satisfy itself that all grey fleet drivers are eligible to drive – i.e. that they have a valid licence and are not disqualified.

The Driver

  • The employee is responsible for holding a current driving licence, with up to date information on endorsements, and for producing this for regular checks by management.
  • Checks should be carried out at least annually, and could be incorporated as part of
  • a staff appraisal.
  • Licence checks, which should be carried out 6 monthly, which will help to identify drivers with endorsements on their licence.
  • Drivers’ insurance details should be checked to ensure that every grey fleet driver is insured to use their vehicle for business journeys.
  • Drivers should hold breakdown assistance cover.
  • Ideally, the above checks will form part of an annual risk assessment for each grey fleet driver. Other factors to consider include the amount and type of driving each driver is required to undertake. Driver assessments and training should be considered to help address any risk concerns.

The Vehicle

  • Record information about grey fleet vehicles – Age, Make, Registration, Emissions, Expiry dates of MOT / Insurance
  • The employee is responsible for ensuring their vehicle complies with road traffic law, is in a safe and roadworthy condition and is fit for purpose.
  • The employer should carry out annual checks including ensuring that MOT certificates are current.
  • The employer should require minimum vehicle standards for the grey fleet, including NCAP ratings, emissions levels, required safety features
  • breakdown cover.
  • Ensure there is a suitable reporting system in place to record any accidents which occur while an employee is driving their own vehicle for business.
  • Pay the same mileage reimbursement rates for all vehicles and engine sizes.