EXAMPLE COMPANY CAR POLICY

(Company Name and Logo)

COMPANY CAR POLICY

As part of this company car policy the company recognises that under the Health and
Safety at Work etc Act 1974 it has the responsibility to ensure, so far as is
reasonably practicable, the health and safety of all employees while at work. Also to
ensure that others are not put at risk by the company’s work-related driving
activities.

Under the Management of Health and Safety at Work Regulations 1999 the company
has a responsibility to manage health and safety effectively. In the course of
compiling this policy the company has assessed the risks to the health and safety of
its employees, while they are driving for work, and to other people who may be
affected by their activities. This Policy, the Driver’s Handbook and the Driver’s Focus
on Safety Handbook all contain the measures and practices the company has put in
place to alleviate the risks identified.

The aims of this policy are to:

1. Minimise business travel wherever possible to reduce its impact on the

environment
2. Exercise a Duty of Care
3. Operate a vehicle selection policy which delivers the right vehicle, at
the right time, at the right price
4. Keep adequate records about vehicle use to monitor and control
vehicle costs
5. Manage occasional use by employees using their own cars for work.
6. Manage the risks identified in this policy through regular checks and
reviews and see what can be improved.

The Company insists all employees affected by this policy should be given a copy and
suitable explanation of what is expected. It is the management’s responsibility to
ensure that the policy is then applied.

1. MINIMISE BUSINESS TRAVEL

All employees must ask themselves the following questions when considering using a
vehicle for company business:

1. Is the journey really necessary?

2. Is there another, better solution?
3. Can the journey be completed more efficiently using other forms of
transport including public transport?

2. DUTY OF CARE

The Company is aware of its legal duty ‘to ensure so far as is reasonably practicable
the health, safety and welfare at work of all employees’. To this aim it will undertake
the following:
Fitness To Drive Company Vehicles

The company will ensure that at all times all drivers are fit to drive company
vehicles. As a result all drivers must read, understand and sign the following:

1. The ‘Company Driver Fitness To Drive Policy’. This outlines the

responsibilities each individual driver must take.
2. The ‘Driving Health Declaration’

Additionally each driver must complete have his/her licence checked by their
supervisor completing the ‘Company Licence Check’ on an annual basis/when the car
is replaced by a new one/every two years

To avoid taking on staff who are not fit to drive company vehicles, at pre-
employment interviews when company driving will be involved in the job role, the
company supervisor involved must complete the ‘Driver's Pre-Employment Check
List’.

The Drivers

The Company operates a single policy approach to driver support and control. It
expects all company car drivers and drivers on company business to take ownership
of the responsibilities involved. It further expects all drivers to obey all road traffic
laws.

For clarity, each car and van driver is given a copy of our driver handbook which
covers the issues, obligations and responsibilities. It also includes more detail on the
subjects mentioned below.

a) Vehicle Safety including regular maintenance

The company expects everyone who drives for work to ensure that their vehicle is
legal and safe. Vehicles may be used for a variety of purposes, and so it is important
to ensure that the type of vehicle used is fit for its purpose. If the work tasks only
(or mainly) involve carrying goods, specify appropriate goods vehicles. If combined
loads of passengers and goods are normally carried, then the type of vehicles
specified should enable goods to be secured properly and that passengers should
each have a seat and seat belt.

Staff using vehicles on company business must comply with the pre-drive checks and
the vehicle safety checks outlined in the driver’s handbook.

The driver is expected to undertake maintenance of the vehicle by arranging

servicing and repairs according to the manufacturer’s handbook.

All managers should lead by personal example and follow the organisation’s policy
concerning the use and maintenance of their own vehicles.

b) Driving style

Company expects all drivers to drive sensibly and economically. It has produced a
number of driver fact sheets which provide general guidance on all aspects of driving
as well as highlighting particular areas of risk

c) Driver Fatigue
The company promotes journey planning as a means of reducing risk of poor driving.
It has produced a fact sheet, ‘Planning a safer Journey’ for all employees to read and
sign.

d) Driver Stress

The company is aware that there are many areas of stress our lives. It is not in
anyone’s interest for a driver to be either stressed when he/she gets into a vehicle or
become agitated as a result of the journey. We have produced a fact sheet, ‘Stress
and Distractions’ to cover the situation for our drivers to read.

e) Speeding

There is no situation whatsoever where any driver on company business needs to

break any speed limits. The company will not pay any fines where employees break
the law.

The company operates a ‘Safer Speed Policy’.

All drivers are reminded it is their responsibility to inform the company of any driving
offences, whether on company business or private use.

f) Mobile Phone Usage While Driving

The Company’s position is clear and unequivocal. Under no circumstances are

driver’s using company vehicles or any driver on company business using their own
vehicle, to make or receive any phone calls whilst driving.

We have produced a drivers fact sheet outlining the dangers of using mobile phones
when driving.

g) Drink & Drugs

The company exercises zero tolerance on the use of alcohol or drugs at work
whether driving on company business or not. Our factsheet ‘Drink and Drugs’
provides information on the effect of both on driving.

h) Smoking

It is the company’s position to comply with the UK Health Act 2006 regarding smoke
free premises and vehicles, which came into force in England on 1st July 2007.

Furthermore to avoid confusion, the company’s smoking policy is to ban smoking

completely from all company cars and vehicles.

i) Training

The company recognises not all drivers will necessarily need any form of training.
However, to reduce road safety risks the company maintains a policy of issuing fact
sheets to drivers on a regular basis to focus on areas of risk.

Additionally, the company will monitor driver’s accident reports and any road traffic
offences to ascertain whether training might be required for a individual driver in a
specific area.

j) Accident Reporting
If despite everything a driver in involved in a road traffic accident which is work
related, he/she must report the accident, however slight, immediately and complete
the company’s Accident Report, copies of which can be obtained from (complete).
Drivers must present their driving licence for inspection on request.

k) Insurance

All Drivers must comply with insurance requirements about who can drive.

l) Record Keeping

Drivers are expected to make all required returns of mileage, expenses, fuel etc
promptly and accurately.

3. VEHICLE SELECTION POLICY

Vehicles are to be provided by the company according to job need, convenience and
remuneration. Effectively, there are three categories. This handbook also covers the
fourth category where employees use their own car on company business.

Aims: To deliver the right vehicle, at the right time, at the right price

a) Essential Car Users

Essential car users are employees in customer-facing roles who have to travel
over 12000 miles a year on company business and therefore need a company
car in order to do their job.

b) Perk Car Users

Perk car users are employees who are in non-customer facing roles and do
not necessarily need a car for company business. Cars will be supplied at the
company’s discretion. However, these cars will be deemed to be available for
company business as and when the need arises.

c) Van Users
Where goods have to be carried or tools and/or equipment needs to go with
an employee on company business.

d) Employees Cars on Company Business

Where the need to use the car for business is on an occasional basis, the
company operates as strict a regime on these vehicles and drivers as it does
on the other categories.

(The following information is individual to each company)

The following are entitled to a company provided vehicle.

a) Levels, grades and job descriptions

b) Fixed job need or pool cars and vans
c) Adding Extras, buy up/buy down

The Vehicles

Cars:
a) Number of seats, doors, boot capacity.
b) Petrol, diesel or electric
 c) Engine size
d) Manual or automatic
e) MPG
f) CO2
g) Insurance group
h) EuroNCAP rating
i) Restrictions: Makes, models, sports cars, coupes, MPV’s

Vans:
a) Petrol, diesel or electric
b) What and whom are they carrying
c) Volume
d) Load capacity
e) Type of van ie high cube, car derived, LWB panel van.
f) Loading Height
g) Access, number and position of doors
h) MPG
i) How many of these cars and vans with what specification?

Fitness for purpose:

a) Amount of mileage
b) Right image for the company
c) No more expensive than valid rivals
d) Does not de-motivate employees

The Right Price and Time

a) Tax, balance sheet and cost factors
b) Whole life costs.
c) For How long? Replacement Cycles Daily rental, minilease, 2,3 or 4 years.
d) Anticipated Annual Mileage
e) Decide the method of funding
f) Service, maintenance & repair

Depending on the above, the budget figure for each to be based on:
(Choose one of the following)
a) Vehicle list price
b) Vehicle invoice price
c) Vehicle rental from contract hire company based on ex vat rental
d) Vehicle rental from contract hire company based on effective rental

4. RECORD KEEPING

The company keeps records of the following:

a) A list of all cars and vans with reasonably up to date mileages

b) A list of all drivers and their driving record
c) Fuel Costs with driver’s individual fuel records/Fuel Card Data
d) Copies of each Driver’s Licence together with the Company Licence Check
e) Employees Driving Health Declarations

5. EMPLOYEES USING THEIR OWN CARS FOR WORK

The Company is aware of the particular risks of employees using their own car for
work whilst recognising there are times when it can be the only convenient solution,
often undertaken at the last minute.
In the Driver’s Handbook the company has detailed a list of conditions to be satisfied
to ensure both the vehicle and driver meet the company’s minimum safety
specifications.

6. AUTHORISED DRIVERS

Those who are permitted to drive company cars are as follows:

a) Any employees who are part of the company car scheme.

b) The spouse or partner of the driver for private use only.
c) Permission for other relatives may be granted at the discretion of the
Company

All authorised drivers must be over 21 years old to drive a company vehicle.

Company cars are not to be used for driving tuition.

Under no circumstances can the car be used as a taxi, for rental or for other
arrangements involving payment for its use. Under no circumstances may the car be
used for any form of competition, rally or motor sports.

Drivers shall not part with the vehicle nor hold themselves as the owner of the
vehicle nor sell, assign, charge, pledge, underlet, hire out or loan or otherwise
dispose or purport to dispose of the vehicle.

7. MANAGING THE RISKS IDENTIFIED IN THIS POLICY

Within this policy the Company has put into place a number of reporting and
checking responsibilities to allow informed decisions to be made about the
effectiveness of existing policy and the need for changes to be made on an ongoing
basis.