Staff-owned vehicles used for work must be legally compliant
Employers who are unaware of their legal obligations to ensure staff-owned vehicles used for work-related travel are properly maintained and legally compliant may be unknowingly missing duty of care requirements, Venson Automotive Solutions has warned.
Whilst it has been over three years since the first pandemic lockdown, almost a third (28%) of working adults are still hybrid working with 16% solely working from home. If an employee’s place of work clause in their contract has changed to homeworking, their privately-owned car will automatically join the ranks of the grey fleet (privately-owned vehicles) when used for work-related travel.
Simon Staton, Client Management Director of Venson Automotive Solutions explains:
“Employers have a duty under the Health and Safety at Work etc. Act 1974 to ensure, as far as is reasonably practicable, the health, safety and welfare at work of their employees. With around half (49%) of UK drivers admitting to skipping essential servicing and vehicle repairs amidst the cost-of-living crisis, it is more important than ever that processes are in place to manage aspects such as driver licence checking, insurance validity, vehicle condition and mileage audit amongst grey fleet vehicles. Businesses and fleet managers, therefore, need to review their driving for work policies as working from home looks set to stay for some businesses.”
It’s not only service and maintenance of grey fleets that businesses must consider. Grey fleet vehicles are often older than company-owned cars so can contribute disproportionately to a company’s carbon footprint. In fact, new research reveals that the average car in the UK is now ten years old. By promoting workplace benefits such as salary sacrifice schemes, not only can employees make savings over a retail deal for an electric vehicle, but the implementation of such an arrangement supports the ‘green’ agenda for businesses.
Simon adds:
“With hybrid and homeworking becoming a permanent fixture, more cars risk edging into the grey fleet. Business owners and fleet management teams must keep on top of this to ensure they are not putting their firm or employee at risk, especially with an aging, less well-maintained UK car park. They might also want to consider alternative options like rental or EV pool cars for those occasional driving for work employees. It all helps to cut the burden of managing a grey fleet and reduces CO2 emissions at the same time.”
The pandemic had a significant impact on fleet management. Early in 2021, International Workplace published guidance from Venson on how fleet managers could prepare for any future pandemics:
1. Challenge your fleet supplier
There’s no need to fear challenging the established order, in fact shaking things up can be mutually beneficial for both parties. The sign of a genuinely effective fleet supplier is one that works with a fleet manager to ensure their fleet policy is the most appropriate for their needs. In addition, fleet managers must ensure they know about the ‘hidden’ costs from their supplier, such as administration, maintenance, tyres and windscreen recharges.
2. Review company vehicle policy
Vehicle whole life costs are one of the least-considered but most important factors when it comes to selecting vehicles for a fleet policy. It may seem simple but if a fleet supplier provides information that considers all aspects of running a vehicle, including tax, maintenance, fuel and insurance, a fleet manager can quickly compare two models with an identical list price and choose the one that is most cost-effective for their fleet over the vehicle’s life.
3. Fuel costs
This is the big one for all fleets, and rightly so. However, fuel bills can be tackled with a variety of tactics. First and foremost is ensuring the vehicles themselves are properly maintained with regular servicing and tyre pressure checks – fuel costs can be 5% to 10% higher if tyre pressure is incorrect. Utilising telematics can help in achieving lower fuel costs by educating drivers to take the shortest route possible, avoid congestion and not make excessive journeys. Many telematics providers suggest 10% fuel savings can be guaranteed.
4. Driver training
Most drivers will feel they don’t require training, but with less time behind the wheel due to the pandemic it would be hugely beneficial for driver safety. Implementing a driver risk assessment program coupled with either classroom or in-vehicle training will not only see incident rates fall but also associated accident costs. Additionally, insurers tend to look more kindly on a fleet that has an active driver training program in place.
5. Salary sacrifice
Government changes in tax rates and NIC have made salary sacrifice a more attractive option for companies in recent months. But there are other benefits too, as Duty of Care to employees and carbon footprint can both be improved by offering a salary sacrifice scheme.
Read the full article here.
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