‘Grey fleet’ are vehicles owned by employees and used for business purposes – often funded with a car allowance. Even with privately owned vehicles, the company still has a compliance responsibility and duty of care to ensure they are safe and legal. According to a study, 57% of “at work” mileage was covered by employees in privately owned vehicles – which is 1.4 billion miles a year. These vehicles may not necessarily comply with the current law or may not be fit for purpose. However, most companies that offer rental cars also offer maintenance packages, ensuring that your car is always safe and in excellent condition.
Having a grey fleet can be problematic, especially if there is an accident. The Health and Safety at Work Act 1974 and UK Corporate Manslaughter and Corporate Homicide Act 2007 requires employers to ensure the health and safety of all employees. Employers can be liable if employees use an un-roadworthy vehicle on company business. Employers have a duty of care to ensure the vehicle is maintained, the insurance covers business use and the employee has a valid license.
If there’s an accident, and an employee has failed to follow the guidelines, the employer may face large fines or even prison sentences. All employers have a duty of care under the act to ensure safety of their workers. The Crown Prosecution Service doesn’t have to rely on an individual being found guilty of gross negligence, it just needs to prove that the fatality occurred from a gross breach of the relevant duty of care by the organisation as a whole.
If you give your employees a rental car for their probation period, you can avoid most of the risks associated with grey fleet.