Grey Fleet plays an essential role in businesses but is often neglected and not given the importance it deserves. According to statistics, there are about three times more grey fleet vehicles as compared to business-owned automobiles in the UK. So, it is vital that you have a reasonable understanding of how to manage your grey fleet and driver safety as well. Now, without any further ado, let us get into all the necessary information that you need to know regarding the Grey Fleet.
First things first, let us start with the fundamentals. In basic terminology, Grey Fleet includes all vehicles that are used for business purposes but are not owned by the business. For instance, if you are an employee for a company, and they ask you to transport goods from one place to another, but they do not give you a vehicle and instead ask you to use your personal vehicle. In this case, your car will be a part of the Grey Fleet. Vehicles on a lease can also be a part of a Grey Fleet.
In a nutshell, as long as the company does not own the vehicle, but the business still uses that vehicle, it will be a part of the Grey Fleet.
In many countries around the world, driving for business purposes is considered business work. Therefore, business owners have to make sure that their employees have a reasonably safe and fit vehicle for use, as they do owe a duty of care to their employees and breaching it can lead to a lawsuit. So, employers need to minimise the risks of any accidents by taking reasonable steps and ensuring adequate safety.
Now, you might be wondering how does it apply to Grey Fleet? Well, the answer is simple. Even if the vehicles are not company-owned, the employers still owe a duty of care as long as the personal vehicles of their employees are in use for the benefit of their business. Vehicle ownership does not matter at all. So, Grey Fleet has to be managed and controlled the same way as company vehicles. Also, another thing to consider is that as cars in the Grey Fleet are not company-owned, they are not as well maintained. So, it might be a challenge for the employers to get those cars up to a reasonable standard.
Even the English Law protects the rights of the workers who use their personal car for the interests of their employees. The Corporate Manslaughter Act 2007 clearly states that a business can be held liable if a driver dies due to an injury at work. If any injury or death occurs, the burden of proof will be on the employer to prove that they took reasonable care and safety measures to protect the driver.
Furthermore, some countries also demand employers to keep complete and accurate mileage reimbursement records. Failing to do so can result in a considerable sum of tax penalties.
Before you allow your employees to use their personal vehicles for your business, here are a few things you need to check and/or consider beforehand to avoid any problems.
Now that you know all the essential requirements, here are a few extra steps you can take to ensure the most safety and best practice among the Grey Fleet drivers at your business.
In a nutshell, a Grey Fleet plays a vital role for the benefit of a business, and it must not be neglected in any way. Moreover, the employer owes the employee a duty of care, even if the employee is a driver for the Grey Fleet. A breach in this duty of care can result in a lawsuit by the employee, and that will be a big hit to the reputation and the bank as well. So, make sure you fulfil your obligations to avoid any sort of liabilities.