Grey Fleet Explaination
Grey Fleet refers to any vehicles which do not belong to your company and in which the individual uses their own personal vehicle for business trips. Grey Fleet may include a vehicle purchased through an employee ownership scheme, a privately rented vehicle, or an employee’s privately owned vehicle.
Managing Grey Fleet
Managing your grey fleet can be difficult. Safe2Drive will help keep your drivers on track, as driving their own car for business purposes can be difficult for companies to control. Using the automated Safe2Drive Grey Fleet Management Solution, we can provide all of the information your business and drivers require. This can save money while also improving environmental sustainability impact, duty of care, and company’s reputation.
Because your duty of care commitment remains the same regardless of whether your fleet is leased, owned, or “grey,” it can be challenging to manage and monitor your grey fleet’s vehicles.
Safe2Drive Solutions contains extensive grey fleet management criteria, which enable fleet-decision makers to confirm that all data relating to grey fleet drivers and their cars is accurate and up to date.
It is crucial for businesses to have the ability to verify that all drivers of grey fleet vehicles meet the legal requirements to operate vehicles, including possessing a valid driving licence and not being disqualified from driving.
Grey Fleet Management & Investment
When compared to the operation of a conventional fleet, managing a grey fleet requires a different time commitment and financial investment. The management of grey fleets is not an area in which you want to make a mistake under any circumstances. The Corporate Manslaughter Act of 2007 allows for criminal prosecution of businesses that are responsible for the death of a motorist as a result of work-related travel. Managing a grey fleet, on the other hand, might be advantageous in comparison to operating company-owned vehicles, particularly for companies that do not cover a significant amount of kilometres. This is true even though the dangers are present.
To begin, rather than purchasing and maintaining company vehicles, it is frequently considerably more cost-effective to simply reimburse workers who travel for work outside of their typical commute. This is especially true when those excursions are few and infrequent. Because of the decreased mileage, there is also a lower possibility that the company will be held liable for any accidents or vehicle damage that may occur when workers are driving for work-related purposes.
Managing a grey fleet, on the other hand, may be challenging for any company, regardless of how little mileage their vehicles cover. Because it can be difficult to keep track of the mileage that employees build up while travelling for work, employers run the danger of accidentally overpaying their workers. In a grey fleet, managing general vehicle maintenance can be more challenging due to the fact that personal vehicles are typically older and in poorer condition than company vehicles. This is especially true when compared to company vehicles. The duty of care must also be taken into consideration, which can be disregarded if vehicles of a more advanced age and better condition are employed.
Grey fleet management & Compliance
The administration of grey fleets is subject to a number of rules, all of which managers need to be aware of. To guarantee that an employee’s vehicle is protected in the event that it is used for business-related travel, it is necessary for the employee to ensure the vehicle has business use insurance cover and the maintenance over the vehicle is kept upto date and is road worthy & legal.
Managers are required to monitor the status of a grey fleet car to ensure that it satisfies all legal and road standards. These requirements include a valid driver’s licence, insurance details including commercial uses, a valid MOT certification, and a valid road tax and where applicable breakdown cover.
In order for the vehicle to be used for work, the sustainability standards must be met. This comprises the vehicle’s age, condition, and features such as anti-lock brakes, electronic stability control, air conditioning, and so on.
Grey Fleet - Laws on Work-related Driving
We at Safe2Drive prefer to keep things straightforward. We assist companies in making sure their Grey Fleet is legitimate, compliant, and operates within the law.
Our system exists to make sure that your grey fleet complies with regulations. This entails verifying that your drivers have a current MOT certificate, business insurance, and, if necessary, a current road tax.
According to the Health and Safety at Work etc. Act of 1974, employers must make every effort to safeguard the health and safety of all employees while they are at work. Both employers and employees have a duty to make sure that no one else is in danger while engaging in any type of work-related driving activity.
The Grey Fleet software application makes sure your company complies with existing legislation. Additionally, it verifies the proper business usage insurance, MOT, and, if necessary, road tax. For every renewal of these grey fleet areas of obligation, we also incorporate comprehensive alerting.
Warning: If the owner of a vehicle decides to ignore any of the three areas of duty and keeps driving, the violations may go unnoticed for an extended period of time unless the car is noticed by police officers. Being involved in a traffic incident is a guaranteed way to raise questions about the roadworthiness of the car, taxation, and driver insurance.
The courts take seriously drivers who disregard their obligations under the law. Likewise, the ramifications are even more severe when there is harm or death.
Grey Fleet collaboration with your employees
An important and delicate step in establishing risk-reduction strategies is communicating with the he stakeholders and employees.
The business needs to ensure that all employees and managers are aware of the proper procedures for operating vehicles on a grey fleet when establishing a grey fleet policy. To ensure that managers and employees are aware of their duties and know how to fulfil them effectively, it is essential to communicate the policy. Both staff members and management must be aware of the policy, understand what is expected of them, and understand why it should be adhered to.
Obtaining support and ownership of Grey Fleet management via communication and collaboration with stakeholders is a vital step for improving Grey Fleet management. Continuous communication also gives you the chance to get feedback and keep your procedures are continually improving.
Organisations need to investigate the different internal communication channels and procedures that are available and determine what way is the best method to ensure the full buy in of the employees.
Grey Fleet Solution
According to the feedback which we have received, Safe2Drive’s Grey Fleet System has been built with the needs of our clients in mind.
System users of “Safe2Drive” Grey Fleet & Licence Checking system claim:
“Safe2Drive Grey Fleet management system offers a straightforward online risk management tool to monitor grey fleet drivers, ensuring that you are adhering to the business’s health and safety standards”.
“Their single view offers a high-level driver overview of all driver metrics and allows you to drill down to a more detailed view from the summary page, making it a quick and highly effective method to obtain the data you need as the DVLA do not have anything to cover this area that is automated like Safe2Drive”.
“When you go into the Grey Fleet & Driving Licence System, you are welcomed by a dashboard with a road risk traffic light system and a statistical view of all your drivers Metrics. The Safe2Drive system is web-based, it’s uncomplicated to use, as we keep things simple”.
“No more time-consuming report reviews or arduous searches for the driving information you need (there is a full management reporting suite where required)”.
“With the help of the Safe2Drive validation system, our company has access to all the information on our fleet drivers’ license status and their vehicle credentials, providing proof that both are current and legitimate”.
Grey Fleet Policy
Grey fleet policy within your company?
You will then have a grey fleet if your company permits employees to use their own cars for work-related travel. This covers your cash-for-car programme, vehicles privately leased or rented outside of your company’s car programme, or just their personally owned vehicle that is used for any business trips. Then your business should have a grey fleet policy in place.
Understanding a grey fleet policy: what is it?
Your employees’ use of their own vehicles for work-related travel should be managed through the business grey fleet policy. This should contain detailed details on the cars and the driver, as well as their responsibilities and obligations. The grey fleet policy ought to include the following:
The privately owned vehicle (grey fleet) used for business purposes
Your employee needs to follow a few important procedures with regard to the car they are driving:
- The car needs to be Safe2Drive and follow all applicable traffic laws.
- The service history and MOT must be current.
- Your company may decide on minimal safety requirements, such as safety standards, vehicle size or fuel type.
The grey fleet driver
To drive for your company, the employee must be fit to drive. This criteria involves meeting the correct eyesight standards and being free of health conditions that could impair one’s ability to drive.
- The driver’s licence must be full & current and meet the appropriate businesses requirements.
- The driving licence’s points, endorsements and categories should meet the businesses minimum standards.
- Your employee’s car insurance policy requires to have business use cover.
- Also, your employee must be capable of doing a roadworthiness check on their vehicles.
- The driver should be aware of any accident hotspots before making their business journey.
- Your employees should understand what defines working-related driving.
(E.G. Simple things like a n employee going to a shop to buy sandwiches for a business lunch with a customer. Are they business trips? Your receptionist travels to a post office on her way home to send business mail). They are, all grey fleet journeys!
Choosing to travel on company business using your own vehicle – Grey Fleet
Is the trip required? An excellent choice is using public transit. Online calls are a very good tool for remote meetings, but virtual meetings might also occasionally be a good replacement. (MS Teams, Zoom, or Google Meet).
If you pay your employee 45 pence per mile, you will discover that taking longer trips in a grey fleet vehicle will cost more than using a hire car. Hence, limiting the daily mileage of gray fleet vehicles can result in cost savings.
Managers Guide to Grey Fleet Management
It requires a lot of work to manage driving activities for grey fleets. Managers must understand what defines driving while working. When a team member plans to travel on a grey fleet, a manager must inquire about a number of things. Has the employee’s driving license been checked, and how long ago? Has their insurance policy got business coverage? Have they made sure their car is safe to drive? Is the business trip actually required?
The management of the driver and the vehicle must check all requirements at least once every year or in line with their driving for work policy. Moreover, records of the vehicle & document checks must be kept. Until drivers have satisfied the business with their current driving licence status, business insurance coverage, disclosure of an MOT certificate, road tax, vehicle breakdown coverage, etc., payment of trip claims may also be withheld.
Your managers should have key performance indicators for using a system like Safe2Drive Solutions for managing the grey fleet, as well as a written policy in the driver’s handbook to adhere to. This might have something to do with how quickly they checked on your gray fleet drivers. The Health and Safety at Work etc. Act 1974 applies to employees when they are driving for work, as does corporate manslaughter legislation. An effective grey fleet policy and management system will be expected to be present during any examination of an accident involving an employee using a grey fleet vehicle.
For more information and on Grey Fleet contact Safe2Drive Solutions Today
Grey Fleet System
With the help of the Safe2Drive Solutions Grey Fleet Management system, companies can manage both drivers and vehicles with ease, lowering risk and ensuring compliance with the law. Grey fleet management is crucial for businesses when individuals use their own cars for company travel. This may be a salesperson who frequently travels to client locations or an office staff member who periodically travels to the shops for work business lunch for the team; both fall under the category of grey fleet drivers and need to have their driving licences and vehicles reviewed regularly.
Is it time to put more stringent rules in place for your grey fleet? We have included some facts on the quantity and size of grey fleet with the aim that they may provide you with some insight into this increasingly common style of business travel. We hope that you find this data helpful. To save money for your company, learn to avoid common traps and implement some straightforward improvements.
It’s a Legal Requirement
Employers are required by law to ensure that all cars used on corporate business, regardless of who owns the vehicle, comply with all applicable safety standards and are suitable for their intended purposes. This involves making certain that the car has been properly business insured, road taxed, MOT’d and has breakdown cover.
Grey Fleet Insurance Cover
Unless specifically requested, most car insurance policies do not automatically include coverage for business use on the vehicle. Although it is the driver’s responsibility to obtain the insurance policy, it is the employer’s job to validate not just the insurance certificate but also the insurance policy to ensure that business miles are included in the coverage.
The Scale of the Grey Fleet Problem
The scale of the grey fleet in the UK is significant; it is believed that there are 13 million cars belonging to the grey fleet operating on the roads*. Surprisingly, there is very little regulation surrounding the grey fleet, and the entire fleet is frequently forgotten about.
Grey Fleet Journeys
It is estimated that 11 billion grey fleet miles are driven each year*. As part of the HMRC’s Approved Mileage Allowance Payments scheme, grey fleet drivers can claim 45 pence per mile for the first 10,000 business miles they drive and 25 pence per mile after that, which can quickly add up to a significant amount of money. *Grey fleet miles are defined as miles driven by vehicles that are not registered as being used for business purposes
Age of your Grey Fleet
The average age of a vehicle that is part of a grey fleet is 8 years old*. When compared, the typical length of a car lease is 1.5 years, while the typical length of time spent renting a car is half a year. The grey fleet is an ageing fleet that is a kind of mobility that is statistically less safe and produces a large amount of pollution.
How much does Grey Fleet Cost?
The fact that employers spend around £5 billion annually on grey fleet highlights the necessity to address the issue and identify strategies to reduce the costs associated with grey fleet.
Financial Impact of Grey Fleet
Impact on finances: mileage reimbursement rates for grey fleet vehicles are typically substantially higher than those for alternative forms of transportation, and mileage claims for grey fleet vehicles are frequently, at best, approximated and, at worst, overstated.
Grey Fleet – How It affects the Environment
It is common knowledge that the majority of an organization’s total road transport CO2 emissions come from their grey fleet vehicles, which are typically much older than the company-owned automobiles. Taking action against grey fleet vehicles will assist in lowering an organisation’s overall carbon footprint and will contribute to the accomplishment of CO2 reduction goals.
Grey Fleet Changes
Take into consideration other options than using grey fleets for business travel, such as public transportation, telephone or video conferencing, automobile rental, car clubs, car leasing, or fleet management. Urge your staff members to think creatively and not to automatically assume that driving is the best solution to every problem.
Treat the vehicles as if the company owned them and manage them accordingly
The archiving and recording of vehicle data is an absolutely necessary step in operating a grey fleet. This includes the data of the registration, the age of the car, as well as checks for the MOT and insurance. The compliance of your fleet may be maintained by storing this data and doing regular checks on it. This will help establish an audit trail. The identification of a problem is the initial stage in every issue-solving process.
All of the pertinent vehicle data that is necessary to fulfill one’s duty of care and to manage a compliant fleet is stored in the Safe2Drives Grey Fleet system. Because the system is able to carry out automated checks with no intervention, the amount of time spent on administration has been greatly cut down. Also, there is no need to remind or pursue drivers for paperwork because Safe2Drive Solutions takes care of it for you.
Contact us today to reduce your Grey Fleet risk with Safe2Drive Solutions