New research from business insurance companies suggests that over a third of employees who use their privately owned or cash allowance car for business purposes have never been requested by their employers to provide evidence of a valid MOT (35%) or insurance policy (32%). Additionally, 31% have never been required to show a valid, clean driving licence to their employer.
Gap in Understanding?
This new research, carried out a company which supplies fleet vehicles to employers, indicates a significant gap in understanding among UK businesses regarding their duty of care responsibilities towards grey-fleet drivers. Grey fleet is the term used to refer to companies which don’t have their own company vehicles, but who pay mileage to employees who use their own cars or vans on business use from time to time. Managers are supposed to check that employees who use their personal vehicles for work have the correct MOT, licence, and other paperwork to avoid potential legal, financial, and reputational risks.
Employer Responsibility
While it is the responsibility of employees to make sure that they are complying with road traffic laws and that their own cares are safe for use, employers should also be conducting annual checks on anyone who is using their private vehicle for work, whether regularly, or just once or twice per year. These checks should include verifying driver licences and keeping records of insurance, MOT, and road tax for all privately owned vehicles used for work.
The research also showed that 40% of employees using their private or cash allowance car for business purposes have never been asked to provide their vehicle’s service, maintenance, and repair record to their employer.
Health and Safety Law
Proper management of driver risk is essential to make sure that employers are meeting their duty of care and legal obligations under various laws, including the Health and Safety at Work Act and Road Traffic Act 1988. If the employer is not making the proper checks, and their employee is involved in s serious or fatal road accident on company business in an unroadworthy vehicle, the employer could find themselves involved in expensive and prolonged legal action. Legal obligations for managing risk among grey-fleet drivers can potentially save lives, not just prevent financial losses or legal consequences.
Annual Checks
What is clear from this research is that the majority of employers fail to effectively manage the business use of employee-owned cars. Only a small percentage of companies have comprehensive policies covering the subject. The advice from industry experts is that every employer should have a process for checking up on all drivers and vehicles annually. Required checks include ensuring all drivers hold valid UK driving licenses, conducting driver risk assessments, and maintaining up-to-date records of insurance, MOT, and road tax for all privately owned vehicles used for business purposes. If this is new to employers, it may come as a bit of a shock to be asked to go through this process annually, but the consequences of not checking employee drivers can be severe.
