How many of your staff (or your client’s staff) drive on company business?

With the introduction of the Corporate Manslaughter Bill which became law in April 2008, there has become even more pressure put on companies to keep records of all drivers and vehicles used on company business.

This is NOT just company owned vehicles, but any vehicle used by a member of staff on company business, even if they are only going to the post box. Between 1 and 3 million vehicles are used on company business and surveys show that some 60% are not properly maintained and 33% are not properly insured.

In the eyes of the above law, under a duty of care, Partners could be held responsible in the event of a serious accident or fatality, and be prosecuted accordingly.

With the increase in the number of car allowances being offered to employees, as opposed to company cars, many companies have thought that the running and maintaining of vehicles was not their problem any more. However, they are wrong.

The new regulations now mean that any member of staff driving on company business in either a company car or their own car must have -:

• A current and valid licence for the vehicle they are driving.
• The correct insurance cover for the journeys they are doing.
• A vehicle that is suitable for the purpose to which it is going to be used.
• A vehicle that is road worthy.
• A vehicle that is serviced as per the manufacturers guidelines.
• Current Tax and MOT, where applicable.

It is the employee’s responsibility to provide this information, but it the company’s responsibility to monitor the information.

What procedures do you need to have in place?

Driving licence checks should be done with the DVLA to make sure the licence is current and not a copy or replacement. This should be checked more than once a year.

If a driver has a number of penalty points, the licence should be checked more often to confirm they are still eligible to drive.

Drivers using their own vehicles also need to provide documentary proof of:

• Current mileage against service history.
• Proof of service history (service books or bills).
• Copy of current insurance certificate.
• Copy of current MOT certificate.
• Either a signed vehicle condition report (road worthiness) by your in house inspector or they sign a declaration each month to confirm that the vehicle is in a road worthy condition.

Drivers should then be reminded when MOTs, insurance policies and services are due and copies put on record.

As can be seen from the above, even if the vehicles do not belong to the company, if it is being used on company business, the company has a duty to make sure it is legal, safe and suitable for the purpose to which it’s going to be used.

Paul Hollis 
June 2008