| Thousands of companies that allow staff to
drive their own cars on business are walking a health and
safety tightrope as they flout the law, says Ashley Martin |
Professor Peter Cooke |
 |
| "Many employers are
not
risk-assessing employees
that use privately-owned vehicles for
work-related travel" |
Five million employees use their own cars on business trips, but
many experts believe their utilisation is the Achilles’ heel
of fleet safety with basic checks ignored. And, with employees demanding
increasingly flexible benefit packages, more staff are opting to
take cash, personal contract purchase plan or an employee car ownership
scheme alternatives to the company car. As a result, the number
of employee-owned cars used on business is likely to increase.
The RAC “Report on Motoring” suggests that around five
million privately-owned cars are driven on business, although a
recent British Vehicle Rental and Leasing Association survey in
association with the International Car Distribution programme, suggested
that the figure was only 2.1 million vehicles, up from 1.6 million
in recent years. The RAC Report also suggested that only 2% of fleet
managers checked private cars used on business for technical safety
and roadworthiness, despite those cars being significantly older
than company-funded cars and, on average, serviced less often. Meanwhile,
a survey from Zurich Risk Services reveals that 51% of businesses
admitted that they didn’t look after the specific safety needs
of employees who drive their own cars on business.
In addition, says the RAC, most private cars driven on work-related
trips may be uninsured for business. It is suggested that more than
half of fleet managers incorrectly believe insurance policies for
private cars cover work-related journeys and only 18% of drivers
say their employer has asked them if they have the appropriate insurance
cover. Therefore, it is estimated that 3.5 million cars, covering
17 billion miles a year on work-related business, are not insured
for those journeys. That, says the RAC, suggests a widespread problem,
as 14% of drivers using their private car on company business admit
having had an accident while on work business in the last five years.
Such figures should shock every fleet decision-maker and company
boss as, in the eyes of the law, irrespective of whether a vehicle
driven on business is company-owned or privately-owned, an employer’s
corporate responsibility and duty of care is identical. Consequently,
businesses could be leaving themselves open to the threat of prosecution
and substantial fines or jail for individual directors in the event
of a collision involving one of their employees driving their own
car on business which is found to be unroadworthy. Andy Price, senior
risk consultant for motor fleet for Zurich Risk Services, says:
“Under health and safety legislation, employers are required
to conduct risk assessments of their employees before letting them
drive on business.
But our research demonstrates that many employers are not risk-assessing
employees that use privately-owned vehicles for work-related travel.”
It is a view that is met with widespread agreement. With, for example,
Professor Peter Cooke, of the Centre for Automotive Industries Management,
Nottingham Business School at the Nottingham Trent University, who
wrote the recent Kwik-Fit Fleet-sponsored “Profit through
Safety: A Boardroom Plan for Action” report, saying that fleet
executives have a crucial role to play in driving forward a corporate
risk management action plan, particularly in relation to private
cars used on business trips.
Professor Cooke believes that the overall occupational driving risk
management picture is being confused by employees providing their
own cars for use on business trips. As a consequence, he concludes,
privately-owned cars used on work-related journeys are the Achilles’
heel of fleet safety. The report says: “Such vehicles are
the responsibility of the organisation as they are being used on
business, so it is important that the fleet executive has a firm
grip on them – and the authority to stop them being used on
business pending resolution of issues.” Companies, says the
report, must establish/publish rules regarding the quality, age
and acceptability/eligibility of employee-provided cars to be used
on business.
In addition:
- Fleet executives must establish a routine for checking the
insurance, Vehicle Excise Duty and MoT status of all privately-owned
vehicles used on business; repeated on a quarterly basis
- Regular, but random, checks should be made on employee cars
used on business. If necessary, a list of items to be checked
should be published
- Licence documentation of employees who drive on business should
be checked quarterly
Professor Cooke says: “The organisation needs to be able
to monitor the employee-provided vehicle on an ongoing basis to
ensure the car provided is not only roadworthy, but is of an appropriate
quality to represent the business and appropriately insured for
the business role in which it will be used. Such an arrangement
may require a disproportionate amount of time and effort.”
The RAC Report says the potential problem is significant, with
private car owners averaging eight hours a week behind the wheel
on company business.
Although they only drive an average 4,800 miles a year on work-related
business – compared with 14,500 miles a year for company
car drivers – they account for 36% of all corporate mileage.
An RAC spokeswoman says: “What is perhaps astonishing is
that in some companies even the most basic practices, such as
checking a person’s licence, go overlooked. In these instances,
how can they be sure that the safety of a driver and their passengers
are not at risk?” In addition, says the RAC, it is unlikely
that many, or any, companies specify minimum safety features,
such as ABS brakes and airbags, where private cars are driven
for work.
Five million employees use
their own cars for business |
|
| "What is astonishing
is that in some companies even the most basic practices, such
as checking a person's licence, go overlooked" |
The spokeswoman adds: “The RAC calls on all companies to
acknowledge the importance of the issue and to develop a road
safety policy that applies to both company cars and private cars
when driven on company business.” The increasing uptake
of cash alternatives to the company and the laissez-faire attitude
towards safety of the majority of businesses is an issue that
has led to some vehicle providers to launch unique motor insurance
packages. Bristol-based contract hire and leasing specialist ALD
Automotive, for example, has developed with Zurich an insurance
package for the private car purchase market that includes unlimited
business mileage cover, the potential of a three-year fixed rate
premium, uninsured loss recovery up to £100,000, a free
courtesy car during accident repairs and European roadside breakdown
assistance.
Managing director Keith Allen says: “It is unbelievable
that so many companies appear to have washed their hands of any
responsibility when allowing staff to take a cash alternative,
a PCP or ECO scheme. “In today’s employment market,
one funding solution is not a definitive answer to a company’s
fleet requirements. However, companies must understand not only
the financial and administrative impact on themselves and their
staff of each funding option, but also that the health and safety
and duty of care burden remains with the business whichever method
is chosen. “We can build health and safety compliance into
traditional company car and employee car ownership schemes and
work with customers to improve their duty of care compliance record,
but it is organisations that have introduced cash for car plans
and relinquished controls that are our major concern. These businesses
must take greater ownership and make sure that mandatory maintenance
and insurance are part of the overall vehicle package. Too many
companies and their directors are flirting with the law.
They must wake up to increasingly-stringent driving health and
safety legislation.”
Duty of Care obligations for employees
using their own cars on company business
- Company policy – provide detailed guidelines
on safe and sensible business driving, and make it clear
that the guidelines extend to private car users as well
as company car drivers
- Risk assessment – ensure the organisation has
a risk management strategy in place, including the ability
to identify “at risk” drivers and provide
remedial training where necessary
- Vehicle condition – check that the employee’s
car is in roadworthy condition. Is there evidence of routine
servicing? If the car is over three years old, does it
have a valid MoT certificate?
- Insurance – check the employee’s Certificate
of Motor Insurance to ensure they are covered for business
use
Source: IAM Fleet
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