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What is a ‘grey fleet’ driver?
The term “grey fleet” refers to vehicles used for work purposes that are owned by employees, not the company.
This can include personal cars used occasionally for work travel, even if mileage and fuel costs are reimbursed.
It also includes vehicles used under cash allowance schemes.
Essentially, if an employee is driving their own vehicle for any work-related purpose, it falls under the grey fleet. This applies to journeys between different work sites, offices, or stores.
For officially home-based employees, a business journey to any work location, even the employer’s offices, is considered driving for work.
Commuting to a regular place of work, however, is generally not classified as driving for work.
Responsibilities – Owner vs. Business
Both the employee (owner of the vehicle) and the business have responsibilities when it comes to grey fleet vehicles.
Employee’s Responsibilities
Ensuring business insurance is in place
The driver is responsible for ensuring their private car insurance covers business use, over and above commuting.
Maintaining vehicle roadworthiness
This includes regular checks on tyres (Air Pressure, Condition and Tread Depth), windscreen wipers, and ensuring the vehicle is in good mechanical condition and with a valid MOT.
Notifying employer of changes
Drivers should provide updates regarding their licence (e.g., new points), and vehicle (e.g., MOT failure).
Business’s Responsibilities
Under health and safety law, employers are responsible for managing risks to workers who drive a vehicle as part of a work activity, whether it’s a company vehicle or a grey fleet vehicle. This applies to work activities on the road in the same way it does on a fixed site.
Key responsibilities for businesses include;
Duty of Care
Employers have a duty of care to ensure employees are not put at risk by work activities, including driving for work. This also extends to other road users who might be at risk from work vehicles.
Risk Assessment
Businesses must assess all potential risks to their employees and others arising from work activities and implement policies and procedures to minimise those risks.
Verifying Roadworthiness and Legality
It is a legal requirement for any grey fleet vehicle to be verified as roadworthy and legal by the driver’s employer. This includes ensuring the employee holds a valid driving licence, business insurance, a valid MOT, and that the vehicle is taxed.
Regular Checks
Businesses should carry out regular checks to ensure MOT, insurance, and tax are in place and up to date. Research indicates that many businesses are failing in this area, with only one in three conducting regular checks.
Driver Licence Checks
This involves checking the licence is valid, covers the relevant vehicle category, and for any points on the licence.
Policy Implementation
Establishing clear policies and procedures for employees using personal vehicles for business purposes is crucial. This policy should outline what confirmations drivers must provide, what is expected of them, and their ongoing responsibilities.
Training
Businesses should invest in training for grey fleet drivers to help them reduce risk, make informed driving decisions, and drive economically. This can include specific training designed for grey fleet drivers, and support for vulnerable drivers or those who have committed driving offences.
Record Keeping
Businesses need to store driver information and evidence securely, in line with data protection regulations, and ensure easy access to up-to-date data.
Importance of a Proper Policy and Record Keeping
A robust and detailed driver policy is the most important step. It ensures grey fleet drivers are aware of their obligations regarding confirmations, expectations, and ongoing responsibilities.
For record keeping, businesses should move beyond manual methods like spreadsheets and scanned documents. Automated systems can significantly reduce the administrative burden by;
Automating checks
Automatically confirming vehicles are roadworthy, insured for business use, and taxed, and that the driver is legally licensed.
Monitoring changes and sending alerts
Systems can monitor for changes in driver and vehicle status and alert the fleet manager.
Secure data storage
Data is stored securely and compliantly, with instant accessibility.
Automated reminders
The system can contact drivers directly for updated documentation, reducing manual effort.
Part-time or Freelance Grey Fleet Drivers
The Health and Safety at Work Act 1974 is the primary legislation covering occupational health and safety in Great Britain. It places a duty on employers to ensure their employees are not put at risk by work activities.
The Management of Health and Safety at Work Regulations 1999 further requires employers to assess and manage risks.
These laws apply regardless of whether driving is the employee’s main job task or if they are full-time, part-time, or freelance.
If a part-time or freelance driver is using their own vehicle for business purposes, the same rules and responsibilities regarding duty of care, risk assessment, and compliance checks apply to the business.
Penalties for Lack of Management
A lack of proper grey fleet management can lead to significant human and financial costs. Businesses can face severe penalties for failing in their duty of care;
Legal Prosecution
Employers can be prosecuted under various acts, including the Health and Safety at Work Act 1974, the Management of Health and Safety at Work Regulations 1999, the Health and Safety Offences Act 2008, and the Road Traffic Act 1988.
“Cause or Permit” Offence
The Road Traffic Act 1988 creates offences for people who “use, cause, or permit” a motor vehicle to be on the road with a defect. Employers can be found guilty of “causing or permitting” a road traffic offence if they know of a defect or allow its use despite a likely contravention. This includes permitting someone to drive without a licence or insurance.
Gross Negligence Manslaughter/Corporate Manslaughter
If a worker is involved in a road traffic incident while driving for work, and it results in death due to a grossly negligent act or serious management failures, the driver or organisation could be prosecuted for Gross Negligence Manslaughter or under the Corporate Manslaughter and Corporate Homicide Act 2007.
Fines and Imprisonment
The Health and Safety Offences Act 2008 revised penalties for health and safety offences, focusing on the consequences for failing to meet safety standards.
Insurance Implications
A lack of appropriate insurance cover for business use is a significant issue, with one in five grey fleet checks failing due to this. This can leave businesses vulnerable in the event of a collision.
Reputational Damage
Beyond legal and financial penalties, a failure to manage grey fleet risk can lead to significant reputational damage.
TyreSafe Partners with Driving for Better Business (DfBB)
TyreSafe acknowledges the help and support of the Driving for Better Business (DfBB) in the compilation of this advice.
