INTRODUCTION

The organisation needs to define the process of how it will identify its transport needs and match that with the appropriate levels of driving skill. It must also determine how it will approve people to drive company supplied vehicles or drive on company business and how it will manage any outsourced transport services.

As employees join the organisation or existing employees take on additional functions and responsibilities, the generic job function should identify whether the position requires driving a company supplied vehicle or driving on the company’s behalf and the level of licence required.

It is important for the organisation to identify its policy regarding additionally authorised drivers such as employee partners and family members. If company policy authorises employee partners and family members to drive then they should be subject to the same management control as any employee.

Alternatively the organisation might opt for a universal driver approval approach where all licensed employees are approved to a specific vehicle and license level.

Regardless of the approach adopted any and all persons authorised to drive by the company must be subject to regular checks, reviews and management.

MANAGING THE TRANSPORT ACTIVITY

An organisation’s ‘fleet’ can be seen as consisting of four distinct groupings; Tool of trade vehicles, employment packaged (including Novated Lease agreements where vehicle ownership lies with the employee), Employee owned vehicles and outsourced transport services.

In addition, there might be a need on occasion for short term hire vehicles to be used on such occasions as company vehicle breakdown or in the event of a minor incident. The use of these temporary vehicles must also be defined, controlled and managed.

While the ‘fleet’ can be seen as four distinct groupings it is useful to add some additional breakdown criteria.

1. Tool of Trade (TOT) vehicles, provided by the organisation and whose sole function is use for business activities and have no personal use;
2. Employee Package Vehicles (EPV), including Novated Lease vehicles, provided by the organisation, primarily used for personal activities but with occasional business use;
3. Employee Owned Vehicles (EOV) used occasionally for business use;
4. Outsourced Transport (OST).

As each of the above differs in use and their availability for private use, they are subject to separate sets of procedures. For example, an organisation might adopt the following philosophy regarding usage and availability for private use:

TOOL OF TRADE

TOT vehicles shall not be used for private purposes under any circumstances unless specifically authorised in writing.

Employees are not authorised to use, or arrange, a substitute vehicle for company business unless authorised by the company. Such substitutions will only be of the same or a superior specification and carry adequate insurance cover. If there is uncertainty as to what level that should be then the employee must immediately contact the company.

EMPLOYEE PACKAGE VEHICLES (EPV)

There are two groups of vehicles in this category. Vehicles that are ‘company provided’ which are serviced and maintained by the company and ‘Novated Lease’ vehicles which are vehicles acquired via a three way leasing agreement between the employee (who is the vehicle owner), the company and a vehicle supplier.

Company provided vehicles may be used privately by the employee. Where authorised in writing by the company, an employee’s partner may use the vehicle for private use when it is not required for company business.

Employees are not to use a substitute vehicle for company business unless authorised by the company. Such substitutions will only take place where the company supplied vehicle is unavailable due to breakdown or maintenance/servicing requirements.

Without exception, substitute vehicles may only be another company supplied vehicle or a vehicle sourced from a short term lease/hire company such as a major car hire organisation. Such organisations will only be used with the express authorisation of the company. Any vehicle hired will be of the same or superior specification and carry adequate insurance cover. If there is uncertainty as to what level that should be then the employee must immediately contact the company.

USE OF PRIVATELY OWENED VEHICLES

Vehicles that are employee owned may be used for company business by the employee when authorised by the company. Employees will be compensated for the use of the vehicle on a reimbursement basis in line with Australian Taxation Office guidelines.

The company must approve the employee’s vehicle for use on company business and ensure that employees do not use substitute vehicles or drive on company business, unless authorised to do so by the company.

Such vehicle substitutions will only take place where the employee owned vehicle is unavailable due to breakdown or maintenance/servicing requirements.

Without exception substitute vehicles may only be a vehicle sourced from a short term lease/hire company such as a major car hire organisation. Such organisations will only be used with the express authorisation of the company. Any vehicle hired will be of the same or superior specification and carry adequate insurance cover. If there is uncertainty as to what level that should be then the employee must immediately contact the company.

PROBLEMS WITH THE USE OF PRIVATELY OWNED VEHICLES

Shifting the burden of the company vehicle program to employees may seem, at first, to be an ideal way to accomplish cost reductions. There is often the misconception that by using a car allowance system or novating the vehicle the organisation is able to transfer or eliminate its OH&S responsibility.

However, while the company may avoid exposures for personal use of employee owned vehicles, a liability can develop should the employee postpone or cancel maintenance or safety-related repairs? What liability would the company face if when driving on company business and an incident was caused by deferred maintenance or in a vehicle that did not have adequate (business) insurance?

Not providing a company vehicle for company transport activities can leave you with little or no control over the condition of the employee’s vehicle. The company is required to have a system in place to ensure that the employee properly maintains the vehicle and had a comprehensive enough insurance level to cover business activities.

In addition, a company vehicle is part of the corporate image you present to the world. Using company owned vehicles allows you to control the suitability and appearance of the vehicles used for your business. When an employee provides the vehicle, you surrender this control. The wrong vehicle can send the wrong message to your customers.

OUTSOURCED

Outsourcing all or part of the company’s transport does not eliminate the responsibility of ensuring that the company’s transport activities do not adversely affect the general public. ‘If it is done on your behalf then you have a responsibility’.

What level of control is required will depend upon systems in place in the outsourcing service provider. As a minimum, a safety policy, procedure system and an incident review program should be evident and sighted with examples available demonstrating the satisfactory performance of the system.

MATCHING VEHICLE AND DRIVER

The organisation needs to match its identified transport vehicle which has been identified from its ‘fit for purpose’ analysis with each of the above categories and clearly define the skill level and licence categories required for each.

Employee job descriptions must identify if the employee is required to drive on company business and what level of skill, competency and licence standard is required.

APPROVALS OF DRIVERS

Before employment is confirmed the potential employee’s driving licence should be sighted and confirmed to be current and correct and an assessment of the potential employee’s level of driving competence made. A check will also be undertaken of the employee’s previous driving record and references.

Where the organisation has approved additional drivers (people not employed by the organisation such as partners and dependents) there are a number of things to consider when drafting a policy as to who else should be allowed to drive the vehicle.

It is recommended that the policy be limited to a spouse or partner. Risk assessments and licence checks should always be carried out on the non-employee as the employer still owes a duty of care when there is a non-employee driving a company vehicle or performing company business.

As non-employees receive the benefits of driving a company car it is not unreasonable to ask them to undergo a risk assessment, licence check or driver training. If they decline, the benefit should simply be revoked.

There needs to be a system in place to ensure that any and all approved drivers will be required to periodically present their current driving (original) licence for inspection (i.e. every three months) whether they drive the vehicle in that period or not.

Employees should be required to immediately notify the company of any licence suspension, award of demerit points or pending action against themselves and/or their partner/dependents by the police and/or any other authorities. Failure to do so will automatically trigger the suspension of driving privileges and may result in termination of employment.

DRIVER SAFETY CONTRACT