Do you allow members of staff, casual employees, freelance workers and temporary staff to use their own vehicle for work purposes? Perhaps you recompense them for any mileage they do on business, or even give them a car allowance to fund their own vehicle for business use.

If you do any of the above, then you have a ‘Grey Fleet' - so called because it's a grey area and one fraught with risk and exposure. If you think you've absolved yourself of all responsibility by asking someone to run to the bank in their private vehicle then you are mistaken - the Health & Safety at Work Act and the Corporate Manslaughter Act make no distinction between the use of a company or private vehicle on company business.

The owners of a businesses are ultimately responsible for making sure that a member of staff is protected and safe in their working environment as much as is reasonably possible, and that includes a vehicle.

Another common misconception is the belief that a Grey Fleet is a cost effective fleet, as the only cost incurred is the mileage recompense. By paying the pre-agreed pence per mile charge the Fleet Manager loses the ability to control costs - he is at the mercy of the drivers skill in negotiating lower costs for servicing & repair, fuel and down time, along with the possibility of excessive mileage claims.

Over the past 10 years there has been a dramatic rise in the cost and liability associated with using private cars on business, with there now being compelling arguments for a more managed approach to running a Grey Fleet.

The Grey Fleet

• How many drivers use their own vehicles?
• How are they recompensed?
• Why did they use their own vehicle?
• Was authority required from a line manager to use their own vehicle?

The Journey

• Was the journey necessary?
• Was the Driver behind the wheel for an excessive period of time?
• Could the journey have been combined with other journeys?
• Was the use of Public Transport a possibility?
• Would a company car have been available at that time?
• Was a pool car available?
• Would a hire car have been more suitable for that journey?

The Cost

• How many business miles have been claimed in the past 12 months and what was the cost?
• Is your mileage reimbursement rate too high, encouraging private use?
• Have any associated costs been claimed (eg. Insurance, service, repair)

The Private Car

• Is it safe, legal and fit for purpose?
• When did you last have sight of a current MOT certificate?
• Is it insured for business use?
• Does it convey the right image to your customers?
• When was the last service performed and tyres checked?
• What is the CO2 rating of the vehicle?
• Does the Driver have any form of breakdown cover?

The Driver

• When did you last see and check the drivers licence?
• Is he/she fit and qualified to drive this vehicle?
• Are you aware of the driver's accident history?

Once you start to address some of the above areas, you will soon realise that what is required is a robust process based upon a Driver Handbook. Once a formal process is in place that shows the company to be dealing with its Grey Fleet in a responsible and legal manner, then the control that is gained will allow you to reduce costs and improve compliance.

In summary, you should look to:

• Quantify the number of journeys claimed
• Compare the reimbursement costs to those of a pool or hire car
• Discuss removing the need for employees to use their own car at all
• Limit the journeys that can be made to 80 miles - this is considered to be the point at which a hire car becomes more cost effective.
• Invest in processes that highlight where Driving Licences and Vehicle Records have not been seen - these are areas of risk.
• Develop a Driver Handbook that links to your Health & Safety Policy, and make sure all drivers have a copy - obtain their written confirmation that they have read and understood it.
• Look to limit the age and type of any vehicle used for business purposes to reduce Co2 emissions, improve safety and maintain a company image.