A ‘grey fleet' vehicle is one which is employee owned and is used for work related journeys.
How does this affect employers?
There are three good reasons why employers might want to reduce the use of grey fleet vehicles:
- Corporate social responsibility – Employers have a duty under the Health and Safety at Work Act 1974 to ensure, so far as is reasonably practicable the health, safety and welfare at work, including whilst driving for work, 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 on grounds of resource, expertise and the greater difficulty in monitoring vehicles not directly owned or managed by the organisation.
- CO2 emissions - Grey fleet vehicles are generally older than company owned cars and are known to contribute the bulk of the road transport CO2 emissions in some organisations. Tackling grey fleet vehicles will help reduce an organisations carbon footprint and contribute towards achieving CO2 reduction targets.
- Cost – Grey fleet mileage re-imbursement rates are normally considerably higher than alternative modes of travel and a focus on grey fleet vehicles helps employees make conscious decisions about the journeys they make. This typically results in a reduction in unnecessary business journeys and reduces the strain on travel budgets.
What are the alternatives to grey fleet vehicles?
The main alternatives to grey fleet vehicles are: telephone or video conferencing, public transport, car rental, car clubs, car leasing or fleet management.
Rental – Car rental provides the newest, cleanest and safest vehicles for employees on a flexible basis. Cars can be delivered to the office or home and rented for as little as one hour to one month. Employers can be provided with detailed management reporting information to help monitor usage. Rental allows an employer to monitor vehicle emissions, costs and the health and safety of employees.
Leasing – Leasing vehicles provides a fixed cost motoring solution with no surprises, it is a cost effective solution when compared with grey fleet miles as is demonstrated below. It is a useful means of attracting and retaining staff as they are provided with the latest safety features and the greenest fuel efficient technology. Employers are provided with total control over their fleet profiles and total peace of mind as they are provided with ongoing fleet management advice and support.
Fleet management – Where employers allow own vehicle use it is important that the use is managed to comply with duty of care obligations, this includes areas such as: driver licence status, insurance validity, vehicle condition and mileage audit. Leasing companies can assist with advice and guidance in this area.
For more information, you can watch the BVRLA's video series.