QUESTION OF THE WEEK – What Should I Consider When Drawing Up A Company Vehicle Policy?

BWF members such as yourselves frequently use our Member and Technical Helplines for assistance on a wide range of Employment, Health and Safety, Contractual and Technical issues. We’re putting up a frequently asked question every Tuesday in order to help members and illustrate the type of advice we are able to provide. If you have any questions that you would like to see featured, we would be happy to assist. This question and many others like it can be found in our Question Centre. If you want further advice on any of the issues, don’t hesitate to ring the helpline or browse our extensive publications library, which includes guidance on pre-employment medical questionnaires,  briefings on accident reporting and investigations, and age discrimination advice. This week: What Should I Include When Drawing Up A Company Vehicle Policy? Information collected from our yearly Pay and Conditions Survey suggests that more than half of BWF member companies offer employees the benefit of company vehicles, tools or a clothing allowance. It is often the case that members of staff may require a vehicle to fulfil their duties, whether this is delivering goods to customers, delivering staff to site, or travelling to meet clients. With this in mind, some BWF members may have chosen to operate a company vehicle scheme. Because allowing the use of a company vehicle imparts great responsibility on the employee, it is vital that all staff who wish to enter such a scheme are set strict guidelines for use of the vehicle and are also reminded that failure to follow these may result in the Disciplinary Procedure being invoked. When drawing up a policy, the responsibilities of both the employer and the employee should be made crystal clear. The company will generally be responsible for:

• Purchasing or leasing arrangements for the vehicle.
   
• Costs incurred as a result of vehicle tax and servicing.
   
• Reimbursing employees for fuel expenses relating to company business (if appropriate).
   
• Arranging appropriate insurance to cover each authorised employee for business and private use.
   
• Informing Inland Revenue when an employee joins the company vehicle scheme
   

The employee’s responsibilities will generally include:

1. Ensuring that only drivers authorised by the company are allowed to drive the vehicle.
    
2. Servicing and regular checks of the vehicle in accordance with manufacturer’s recommendations.
    
3. Reporting of any defect or malfunction in the vehicle to the company, including, for example, broken windscreens
    
4. Payment of fuel costs incurred for private miles travelled.
    
5. Ensuring that any arrangements to fit accessories to the vehicle are approved by the company.
    
6. Reporting damage to the vehicle (or third parties) to the company and the insurers and taking note of the appropriate details when involved in an accident.
    
7. Immediately contacting the company and the police (who will issue a crime number in the event of the vehicle or company property being stolen
    
8. Calling out the recovery service in the event of a mechanical breakdown of the vehicle
    
9. Any parking fines, local fines or penalties for driving offences.
    
10. Informing the Inland Revenue that they have a company vehicle.
     
11. Informing the company immediately if they do not wish to make private use the vehicle and confirm this in writing.
     
12. Providing a copy of their valid UK driving licence to be checked at least once a year (and confirming any endorsements that have been added).
     
13. Prohibiting smoking in the vehicle.
     

It must also be stressed that the decision to allow a member of staff to use such a vehicle lies solely with the company. The company reserves the right to deny access to the vehicle scheme at any stage or impose conditions to anyone who they feel is a risk. The BWF has prepared a draft policy within our Employment Publications page, which you can adapt and adopt as appropriate, should you so wish.