What Is Grey Fleet
What Is The Definition of Grey Fleet ?
What Is Grey Fleet.‘Grey Fleet’ is a term used to describe the business miles travelled by an employee in their own vehicle. This ‘fleet’ of employee-owned cars is deemed ‘grey’ as the vehicles in use are in somewhat of a grey area of responsibility for the employer; these responsibilities are often overlooked and misunderstood.
What Is Grey Fleet Best Practice?
In 2008, along with contributions from other bodies, the Office of Government Commerce (OGC) issued a report detailing their methods for grey fleet best practice. It was found that senior support is needed, along with cost research and control measures for grey fleet travel to reduce business journeys and thereby minimise risk as well as financial and environmental impacts.What Is Grey Fleet
What Are Grey Fleet Drivers?
Employees are paid on a pence per mile basis for work-related journeys. It may be convenient but is it the most efficient option for businesses?What Is Grey Fleet
What Is Grey Fleet Duty of Care?
The basic Health and Safety rules which are employed in the office environment are also applied to company cars. The problem with a grey fleet is that this responsibility of duty of care is quite blurred due to the vehicles being employee-owned; fewer than 10% of companies have formal risk management policies in place for this purpose.
As a suggestion, employers should keep a register of their grey fleet drivers which would include information regarding business insurance and in-date driving licences. The condition of the car should also be recorded: up-to-date MOT certificate and general roadworthiness. They must insure their drivers have the correct cover across the board.What Is Grey Fleet
How Does Grey Fleet Insurance Work?
Grey fleet drivers must have an extension on their original insurance policy as their cover must include business travel. This extension could not be easier as many insurance providers do so for free or for a small charge between £10-20. It is imperative that they have this cover as uninsured grey fleet drivers that are involved in an accident while on business are more than likely to find they are not entitled to compensation.What Is Grey Fleet
What Is Grey Fleet Legislation?What Is Grey Fleet
The law regarding grey fleet drivers is very black and white. With or without a grey fleet management policy, the responsibility still rests with the employer. Therefore, it is in the best interest of the employer to enforce the required safety checks and know where they stand with their grey fleet.What Is Grey Fleet
Concerns
In the UK, there are approximately 5 million grey fleet cars on the road. This large number is of concern to many organisations with a grey fleet due to worries over environmental sustainability, financial efficiency and the health and safety of their staff.What Is Grey Fleet
- Environmental Sustainability – most grey fleet vehicles are older than company cars and therefore will produce more carbon emissions (the average age of a company car is less than two years old compared to a grey fleet car which on average is over 7 years old). Tackling grey fleet vehicles would help to reduce an organisations carbon footprint and see them meet their CO2 reduction targets.
- Financial Efficiency – Reimbursing grey fleet mileage rates is normally considerably more costly than other modes of travel so why do businesses not focus on setting up alternatives and help employees think about the journeys they make. This typically results in a reduction in unnecessary business journeys and reduces the strain on travel budgets.What Is Grey Fleet
- Health and Safety – Under the Health and Safety at Work Act 1974, employers have a duty to ensure the health, safety and welfare at work, including whilst driving for work, of their employees. This is relevant in relation to grey fleet vehicles as this statutory duty would apply when employees are undertaking driving for work in their own vehicles. While it is possible to manage grey fleet vehicles effectively, many employers struggle to do so. This is often on grounds of resource, expertise and the greater difficulty in monitoring vehicles not directly owned or managed by the organisation.
Making a Change
As an alternative to grey fleet vehicles, companies could introduce telephone or video conferencing or suggest public transport, car rental, car leasing or fleet management tools.What Is Grey Fleet
Big financial savings can be made by following the previously suggested steps to move away from the use of grey fleet.
What Is Grey Fleet