Risks inherent in the 'grey fleet'

07 December 2007

Employees using their own cars at work are a 'health and safety timebomb' according a new report from fleet management specialists, Arval.

The rise in employees using their own cars on business has created a fleet of unchecked and unmanaged drivers who are a potential H&S timebomb for employers likely to be a prime target for new Corporate Manslaughter legislation.

A new report from Arval, a leading business car specialists, on the 'grey fleet' has highlighted that as many as one in four vehicles used on business could be at risk. Amounting to over one million cars, these vehicles are potentially poorly maintained and incorrectly insured raising fears for driver safety.

Named because of the lack of information known about such vehicles, the 'grey fleet' describes drivers' own vehicles used for business travel.

Employers are failing to check even basic details about private vehicles. The report highlights that 83 per cent of businesses have no procedures in place to check that non-company cars are regularly maintained, while 74 per cent of businesses do not ask their employees for a valid MOT certificate for their vehicles. The report also reveals that 35 per cent of businesses do not check the driving licences of noncompany car drivers and 53 per cent have no policy for knowing that the vehicle is insured for business use.

These vehicles typically sit outside the normal company car policing and reporting channels. The 'grey fleet' has grown as a result of employees opting-out of company car schemes for cash alternatives and employers wanting to provide more flexible benefits.

The report shows that both large businesses and SMEs are susceptible to these risks as a result of poor management of their grey fleet. Small businesses, which often lack the resources to dedicate full time staff to vehicle management, are shown to be most at risk from the 'grey fleet'.

Jenny Powley, Arval director of corporate groups, comments: "It is clear that grey fleet vehicles are not subject to the same rigorous reporting and inspection procedures given to company cars, which is deeply worrying as employers have a duty of care to ensure that employees are safe while driving at work. Relying on employees themselves to keep their vehicle properly maintained and with the correct documentation leaves a company severely exposed to legal action through negligence and failing to meet duty of care obligations. We are concerned that there are potentially thousands of these vehicles being driven that are unsafe and not fit-for-purpose, putting employees and other drivers at risk."

The findings of Arval's research are given all the more meaning with the introduction this year of the Corporate Manslaughter Act, which becomes law from next April. The Act reinforces the obligation on a company to comply with existing health and safety legislation and makes it easier to prosecute companies following fatal accidents. The actions of senior management involved in any prosecution will be put under renewed focus as a result of the new law.

....The Grey Fleet report can be downloaded from www.arval.co.uk.

Views
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Winners in the spotlight
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Looking ahead
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Link: Arval