Transport
The uses of vehicles for business are many and varied. Some are an essential part of the business and a Transport Manager is likely to control the “fleet”. For others a single vehicle or just a few might be involved for work related journeys.
Whatever the number, careful attention must be given to ensuring that the right funding is used to obtain the vehicles required, taking into account business strategy and tax issues.
For example, is it better to use “Contract Hire” or does the business prefer to own its vehicles. In the latter case, is a cash purchase option available or does cash flow or capital dictate that some other form of finance option should be used. Always carefully research the available options and discuss with your accountants before you buy or hire.
If purchasing new vehicles your statutory legal rights together with manufacturers warranties and guarantees will ensure you get what you are paying for. However, in the case of second-hand vehicles the position is far less straight forward.
In the latter event, get the report of an independent engineer to ensure that the vehicle is roadworthy and obtain warranties and guarantees from the seller relative to the vehicles age and condition.
Historically the police enforce work related road traffic offences and Health and Safety legislation is not applied except where dangerous goods are involved.
The police usually prosecute the driver where a road traffic offence is committed but they also have powers to prosecute employers where, for example, schedules are set so tight that the driver has to break the speed limit to meet them. They can also prosecute employers who “cause or permit” an employee to drive without a relevant licence or when the vehicle is in a dangerous condition.
Since December 2003 it has been a criminal offence to operate a hand-held mobile telephone whilst driving and it is important for employers to ensure that staff do not breach that law. In certain circumstances employers could be liable for the employees unlawful use of the mobile telephone because the Regulations provide that anyone who “causes or permits” any other person to use a handheld device while driving is also committing an offence. (Construction and Use (Amendment No.4) Regulations 2003).
Since the 18 August 2008 a new offence of causing death by careless or inconsiderate driving has been introduced. Drivers who cause deaths by not paying due attention to the road or to other road users face a custodial sentence of up to five years. Such behaviour as driving while using a mobile phone, applying make-up or eating or drinking will all be considered by the Courts when passing sentence.
There is also a new offence of causing death by driving while unlicensed, disqualified or uninsured and this carries a custodial sentence of up to two years.
Employers should ensure that their Vehicle Policies emphasise the risks faced by employees who drive work vehicles carelessly or in an inconsiderate manner.
For the responsible and prudent employer it is good business practice to make risk assessments on all employees who drive vehicles as part of their job. Steps should be taken to minimise any risk of the employer contributing to an employee driving dangerously on business trips, e.g. by avoiding unnecessary stress and allowing adequate time for business journeys.
In the risk assessment consideration must also be given to any loads carried in company cars. The Construction and Use Regulations require that any such loads should be restrained and be in such a position as to pose no threat to persons or property.
Risk assessments must also extend to the unloading of workplace vehicles of whatever nature, whether they are cars, lorries or fork-lift trucks. Clear procedures and rules should regularly be drawn to the attention of all relevant employees with their personal safety and the safety of anyone else in the vicinity being of paramount importance.
To help identify the hazards and risks associated with transport in the workplace and to take steps to eliminate them click on to http://hse.gov.uk/workplacetransport/management
To minimise unnecessary risks to the business where company vehicles are driven by employees it is essential that a Vehicle Policy is in place together with the imposition of conditions and rules. It is suggested that a clause is inserted in relevant contracts of employment along the following lines:
“A company vehicle will be provided to the employee for business use only (or for business and private use (the latter being a discretionary benefit only)). SUBJECT to the Company’s Vehicle Policy and the conditions and rules stated therein. The employee acknowledges that he/she has received a copy of the Policy”.
To obtain a draft precedent of a Vehicle Policy with conditions and rules included, contact the Helpline.
Cycles, of course, are another form of transport which some employers may require their staff – usually children or young persons – to use for the delivery of goods. In such cases the special considerations involved require a separate policy with procedures and rules. Contact the Helpline for advice and a draft precedent.
It is worth remembering that a sensible vehicle policy with rules for employees might help to limit insurance premiums.
For the disposal of old vehicles reference should be made to the End of Life Vehicle (ELV) Regulations 2003.
All PBS information sheets are designed to provide the detail you need to implement best business and employment practices. They are not a detailed commentary on the current law and where advice is needed in a specific case you should contact PBS for expert consultation.
transport