“The business community is taking steps to take ‘a menace to safety’ off the road”

Up to one million drivers are playing “Russian Roulette” every day by being behind the wheel of a vehicle without a valid driving licence and thousands of those people continue to make business journeys. Shockingly, these drivers – representing one in every 32 of the 28 million motorists in the UK – are nine times more likely to be involved in an accident than a qualified licence holder, according to figures from the Department for Transport and Driver and Vehicle Licensing Agency.

Under Section 87 (2) of the 1988 Road Traffic Act it is an offence for a person to cause or permit another individual to drive on a road a motor vehicle of any class if that other person is not the holder of a licence authorising them to drive a motor vehicle of that class. The offence carries a penalty of three points and a fine of up to £1,000. The Metropolitan Police has said that liability for any offence under the section of the Act is personal rather than corporate, usually falling on the company secretary.

But the business community – where it is claimed up to 150,000 drivers do not hold valid licences – is taking steps to take “a menace to safety” off the road. A whole new licence checking industry has now sprung up, with contract hire and leasing companies, risk management providers and specialist companies offering the service to employers. For typically between £10 and £15 per licence check, companies, having obtained driver consent, will check driver data held by the DVLA, which charges £5 per check. Currently more than 800 companies have accounts with the DVLA, which is allowed to provide the information under Section 7 (2) (b) of the 1998 Data Protection Act.

Companies offering the checks say they have introduced a driving licence validation service to help fleet managers and HR directors regularly check that employees have a valid driving licence, thereby removing a logistical and procedural nightmare. Having gained permission from drivers with a signed mandate to undertake checks with the DVLA, basic information about the employee’s licence status is obtained including when it expires, what vehicle categories they are qualified to drive as well as endorsement details. Up to four checks a year can be carried out on each licence over the three-year life of the mandate.

The Middlesex-based Licence Bureau, which claims to be the original licence checking company, recommends that following the initial investigation follow-up checks are undertaken annually on staff with less than four points on their licence, six monthly for those with four to seven points and quarterly on staff with eight points or more.

Using a mobile while driving is illegal, but the Licence Bureau uncovered examples of employees driving while banned

“The proliferation of speed cameras means a lot more people having points on their licences and that increases their risk”

In the 12 months to March 2005, the DVLA carried out a total of 147,863 checks on driver records – the figure for the 12 months to March 2004 was 94,235 checks. However, with the continuing focus on managing occupational road risk, that figure is expected to dramatically increase. In the four months from April to August this year, more than 61,000 checks were undertaken by the DVLA’s Fee Paying Enquiries department. The DVLA expects the growth trend to continue and is aiming to overcome the administration caused by the paper-based request and response checks with the anticipated launch next year of an electronic service.

A DVLA spokesman says: “In line with the government’s e-policy, a service to provide a direct electronic link to the drivers’ database is being developed. The aim of the project is to provide a secure internet-based fee-paying enquiry service that will only be available to commercial organisations that can demonstrate business need and enter into a contractual agreement with the DVLA. “The organisation enquiring on the record will be required to obtain the consent of the driver but, rather than submit each mandate to DVLA in advance of release of information, they will access the driver’s record directly via a secure electronic link. There will be a requirement to store evidence of the driver’s consent for future audit by DVLA.”

In the interim, the DVLA launched in September a CD-based alternative to the established paper-based system for batch enquiries. This costs £3 per enquiry and the DVLA expects to make 180,000 checks in the first year of operation. Interactive Driving Systems says it has teamed up with Intelligent Data Systems to already provide an electronic driving licence check. The licence check service combines the risk assessment and information management systems of the company’s Virtual Fleet Risk Manager with the unique electronic DVLA access offered by Intelligent Data Systems. The data is fed directly into the Virtual Fleet Risk Manager’s information system, allowing drivers to be effectively indexed and relevant risk management countermeasures generated depending on their violation/offence record to provide 24/7/365 data visibility on-line.

Tony Round, sales and marketing manager of Licence Bureau, says: “Licence checking is an area which a lot of companies do not focus on because they perceive it to be a non-issue. Most employers assume that if a member of staff or a new employee has a driving licence, the individual can legally drive. “However, we have uncovered examples of employees driving while banned, a bus driver not renewing his PSV licence and some staff never having had a licence. On other occasions employees have resigned their jobs when they have been asked to complete a DVLA mandate for a driving licence check to be undertaken.”

The rising number of speed cameras on Britain’s roads – now more than 6,000 – was the trigger for driving licence checks to be undertaken as an “industry” in their own right.Mr Round says: “The proliferation of speed cameras means a lot more people having points on their licences and that increases their risk. For many people driving is an essential part of their job and the temptation is there for a banned driver to see if they can get away with the deception.”

“Companies are introducing a feel-good and caring environment in which their staff can work”

It was this “fraud” that led to Licence Bureau being launched more than two years ago as a separate business to a sister company specialising in staff vetting and security. The organisation now undertakes checks directly on behalf of clients and on behalf of third parties such as contract hire and leasing companies, fleet management organisations and risk management companies. Mr Round says: “Having undertaken checks, many companies use the reports received as the trigger for additional risk assessments and driver training to be carried out.”

It’s a view shared by Jim Kirkwood, managing director of DriveTech (UK), who says: “Driver licence checking is the starting point for the risk profiling of a driver. Having confirmation of the legality of the driving licence and then whether it is clean or how many points are on the document, coupled with a driver assessment and a check on medical history, determines whether future training is required. Driver profiling is an integral part of an overall risk management strategy.” DriveTech (UK) launched its licence check service directly with DVLA almost two years ago and is checking an average 1,200 licences a month. It is one of the fastest-growing services offered by the company. Mr Kirkwood says: “Best practice in driving licence checking requires significant up-front IT investment in automating all aspects of the process – because it’s a continual process not a one-off.

“This not only means the database which captures, maintains and exception reports on the checks themselves, but also the supply chain links with other stakeholders like DVLA and the customer.” He says DriveTech (UK) is increasingly being asked by safety-conscious fleets to conduct a comprehensive audit trail of drivers and their documentation. Apart from driving licences it includes vehicle registration forms, insurance and MoT certificate checks on vehicles privately owned but driven by employees on business. He says: “Annual licence checks – or more frequent checks for high-risk drivers – are a core part of compliance work that helps target driver training. However, such a basic process is the Achilles heel for many fleets, particularly in respect of the growing number of employees who drive their own cars on company business.

“By putting in place driver audit trails and introducing at-work driving best practice processes, companies are not only safeguarding themselves against possible prosecution, but they are introducing a feel-good and caring environment in which their staff can work.” RAC Business Solutions not only undertakes licence checks on behalf of clients, but also carries out checks on behalf of a number of leasing companies and other fleet service providers. A spokesman says: “If an at-work driver is involved in an accident and is found not to have a valid licence, employers could be held responsible in the eyes of the law. We recommend that checks should increase where drivers are at greater risk of losing their licence. Just because a licence is valid today, it doesn’t mean it will be in six or 12 months time.”

The RAC has been offering a licence checking service for three years and the spokesman adds: “It is one of the often overlooked aspects of fleet management and we expect demand for checks to rise rapidly. The importance of licence checking is only just being picked up by employers, but it should be one of the fundamental tasks of fleet managers.”

The joint Department for Transport and Health and Safety Executive advice published in September 2003 and contained in the Driving at Work: Managing Work-Related Road Safety guidelines asks employers:

• Do you check the validity of the driving licence on recruitment and periodically thereafter?
• Do you specifically check the validity of any LGV/PSV driving entitlements as part of your recruitment procedures and periodically thereafter? Such entitlements may not have been restored after a period of disqualification

DriveTech (UK) says that many companies are outsourcing licence checking to specialist providers because it is a time-consuming issue for managers who, in addition, frequently don’t recognise the codes used on licences to list motoring offences committed. As a result, says Mr Kirkwood, some companies may overlook the severity of some offences committed by staff. DriverTech (UK) says it has highlighted examples of an employee presenting a copy licence, but a DVLA check subsequently revealed an offence of driving without insurance had been committed. The driver resigned their job.

“Businesses are responsible for ensuring that anyone driving a company vehicle is licensed to do so”

Separately, a company representative had provided their driving licence to the employer’s HR department for checking. However, the HR department failed to recognise the conviction code for driving without insurance on the licence. DriveTech (UK)’s check with the DVLA highlighted the offence and the person’s contract was terminated as they had failed to declare the offence. Employers always need to ask new drivers whether they hold a valid licence, and to check again annually and they sometimes need to dig deeper if they suspect that an employee is not being truthful, according to Jeremy Hay, managing director of Essential Risk Consultancy.

But, he adds: “They should never allow themselves to be panicked into buying expensive but unnecessary external blanket checks on all driving employees’ licences – especially if they are only a stand-alone activity that’s not part of a co-ordinated fleet risk programme. “Driving licences are a small part of the fleet risk picture; perhaps 1%. Owner-drivers who aren’t properly insured for business driving are certainly a bigger problem. “The most cost-effective way to reduce risk and see returns on investment right across the business is to tackle at-work road safety at the organisational level. Creating cultural change and involving line management not only drives down accident costs but it also, by demonstrating organisational commitment to safety, hugely reduces exposure to prosecution.”

However, Masterlease, one of the UK’s largest contract hire and fleet management companies, says UK businesses should extend driving licence checking to company car drivers’ relatives and partners who are eligible to drive a company vehicle. Gavin Jones, risk management and rental services manager at Masterlease, says: “Businesses are responsible for ensuring that anyone driving a company vehicle is licensed to do so. Checking partners, and relatives’ driving licences also enables businesses to highlight potential risk areas, such as young drivers with numerous points or other frequent offenders.

“The company may then choose to tighten its car policy, once they know the true risks involved in permitting family members to drive a company vehicle. “If a relative or partner of an employee is driving one of its vehicles without a licence and is involved in an accident, the company’s insurance cover may be invalid.” Nearly 30% of drivers using their cars for business have points on their licences and 65% are involved in an accident every 12 months, according to Masterlease, which claim that almost 80% of businesses are not checking employees’ driving licences regularly.

Mr Jones says: “Driving licence validation is not a soundbite. It is the latest word in the debate surrounding the responsibility employers have to assess the risks their staff undertake, or indeed create, in carrying out their daily jobs. “It is a natural progression for fleet operators to conduct driver licence checking because of the administrative burden it places upon a wide range of departments within a business, from fleet manager to HR director, all of whom are currently exposed by the increasing raft of legislation that regulates the duty of care at work.

“It is an issue that can no longer be trusted to one or two department heads, no matter how diligent. It only takes one accident caused by one driver whose driving history has inadvertently slipped through the net to have a dramatic impact upon the business. “Fleet providers are now well versed in the whole area of risk management and, with corporate manslaughter legislation likely to come on to the statute book in the near future, their sphere of influence is likely to increase.” Inchcape Fleet Solutions offers driving licence checking as an integrated service within its suite of fleet management solutions and on-line reports.

The service was launched around 16 months ago and in excess of 20,000 checks have been undertaken. Managing director Terry Bartlett says: “We recommend that licences are checked twice a year but more frequently for at-risk drivers. Those with six points on their licence within the last six months and those with nine points or more we recommend monthly checks. “In many companies, particularly large organisations, driver licence checking often becomes the responsibility of departmental managers and they are not trained to check licences. It is a process which has to be routinely managed and that is why we take a consultative approach and recommend it as part of our overall fleet management service.”

Lex Vehicle Leasing claims to have uncovered few major problems since launching the service, which is administered by RAC Business Solutions. However, product manager Ian Yates says: “On the car side, we found a few minor issues. However, we were able to remind drivers about the importance of registering a change of address with DVLA and also to explain exactly what kind of vehicle their licence allowed them to drive.

“Where it was particularly useful has been in the area of vans and HGVs, where we were able to ensure that the driver was qualified to drive the vehicle they had been given.” Despite the boom in licence checking, the “industry” remains in its infancy, with cost, logistics and a lack of understanding of the risks involved all touted as reasons why companies do not undertake staff driving licence checks.

However, says Mr Round: “Businesses cannot afford not to undertake licence checks themselves or through a third party. Staff can no longer be employed on face value and trust alone. “If someone must make a choice between keeping their job and feeding their family or revealing that they have a driving ban, loyalty to the employer could go out the window. Companies cannot afford to overestimate peoples’ loyalty.”

Case study

Risk management was a key component of the fleet strategy that global pharmaceutical company GlaxoSmithKline (GSK) specified when it appointed Masterlease to provide Alto, its employee car ownership scheme, to 5,000 car-eligible employees.

“Driver licence validation is an essential tool because it makes sure we are up to speed on our duty of care obligations”

The five-year contract saw Masterlease take over all GSK’s UK car schemes with insurance administration and driving licence validation (DLV) as pivotal components of the agreement. Previously GSK, which has its UK headquarters in Brentford, Middlesex, had several suppliers, leading to complex administration, but the move ensured that the car policy is now driven by the HR department, placing a real focus on ensuring it is an attractive benefit for new and existing employees and ensuring integration with health and safety policies.

The DLV scheme depends upon effective two-way communication and Masterlease has to work closely with GSK’s HR and environmental health and safety (EHS) departments. This ensures that all employees who have ordered a car through the scheme understand the importance of the checks so that they co-operate fully. Contact with employees has therefore been staggered over a number of weeks and months to effectively manage the communication.

GSK is developing its own “driving on company business” policy so that any employee out of the 19,000 UK staff who drive on company business understands the importance of safe driving and having business insurance and an appropriate driving licence. Once agreed, the DLV service works by Masterlease gaining permission from drivers to undertake checks with the DVLA. These checks, which can be undertaken as frequently as the customer requires – in GSK’s case once a year to monitor ongoing endorsements – provide basic information about the employee licence status including expiry date, what vehicles they are qualified to drive, and endorsement details.

The service also offers detailed reports identifying higher-risk drivers, intelligence that is fed back to GSK’s EHS department where remedial action, such as specific corrective driver training, can be recommended. As well as checking driving licences, the ProAct risk management system monitors accident history and provides GSK with management information which is used to increase a driver’s individual insurance according to their risk – so it is only the individual who is punished for bad driving, rather than the entire fleet. Preventative measures, such as regular meetings with GSK’s preferred driver training company Drive & Survive, are also a fundamental part of the overall risk management strategy.

As well as targeting at-risk drivers, specific offence recording provides invaluable management information about company practices, according to Harsha Modha, manager, benefit programmes at GSK. She says: “Driver licence validation is an essential tool because it makes sure we are up to speed on our duty of care obligations. With corporate manslaughter regulations on the horizon, it will become even more important to have a clearly defined risk audit trail. “As an outsourced service providing regular and thorough reports, it offers peace of mind, while freeing my team up to concentrate on our core business.”