Details of grey fleets and their alternatives
In case you’re in a business which expects representatives to be out and about now and again, with a specific end goal to direct their work, quite possibly you will be in need of grey fleet drivers. In this article, Northgate who are the van lease experts provide us everything we need to know about grey fleet, with some other options as well that you might be looking for your business:
Meaning of Grey Fleet
‘Grey Fleet’ can simply used to describe any vehicles which are utilized for business travel however doesn’t have a place with the organization being referred to. These vehicles may be acquired under employee car ownership scheme or privately hired cars or vehicle privately owned by an employee.
However, these vehicles will be driven on organization business — the company in return provides allowance like fuel expense coverage or financial support. But the obligation falls under the employer.
Legal Duty for Companies having Grey Fleet Drivers
The Health and Safety at Work etc Act 1974 emphasis each employer should ensure that it is the necessity of employers to guarantee the wellbeing and security of all representatives while at work. Also it highlights that employer should never put others at risk.
For the individuals who are uncertain about how to go about grey fleet administration at their association, British philanthropy the Royal Society for the Prevention of Accidents (RoSPA) has this online service accessible which causes businesses to guarantee they are dealing with the majority of their legitimate grey fleet.
This system records subtle elements like driving permit legitimacy, insurance including business utilize, MOT affirmation and road tax legitimacy, yet once recorded it can caution each pertinent individual driver and line administrator of dates when any of these things are up for renewal.
Facts & figures about grey fleets
As indicated by Lex Autolease’s yearly Report on Motoring for 2016, it was evaluated that there was near 14 million grey fleet vehicles out and about over the United Kingdom. A report commissioned by the British Vehicle Rental and Leasing Association (BVRLA) titled Getting to grips with Gray Fleet has also suggested that employers across the country are piling on a bill of around £5.5 billion every year to cover the grey fleet.
Also a research by the “Energy Saving Trust” has revealed that the grey fleet drivers drive a total of 12 billion miles a year emitting about 3.5 million tones of CO2 in the process. Similarly, John Webb, who is the principal consultant at Lex Autolease pointed out that 22% of fleet managers do not see any major threats to the company from the employees who use their own cars for work. However, driving is the most dangerous activity for most employees at work and and 62 per cent of private car use is for work-related activity, so duty of care, regardless of the vehicle’s ownership, should be a top priority.”
Grey fleet alternatives
There are a number of possible alternatives to the grey fleet vehicles, as shown below:
Salary sacrifice schemes
For the individuals who utilize vehicles for business travel, a compensation relinquish plan could be presented. This would work in a way that organizations would allow representatives to give up a piece of their pay and consequently get the non-money advantage of another rent vehicle.
This can also result in getting newer vehicles replacing the older models, and hence being less polluting and better maintained.
Vehicle rental services
Vehicle rental administrations enable companies to give their representatives spic and span vehicles on an adaptable conditions. This last point is emphasized by the way that vehicles can be conveyed for the organization to use for as meager as a hour on end or for a month or more.
Once an understanding is worked out, companies will have the capacity to get inside and out administration detailing data so they can screen utilization, and in addition continue best of vehicle outflows and any related expenses.
Another approach to say farewell to the quantity of grey fleet vehicles at an association is to bring down the business mileage limit to which workers will be qualified to get in the driver’s seat of an organization vehicle.
Lex Autolease’s principal consultant John Webb acknowledged: “This means that the business has more control, or at least some say, over the car that drivers have.”