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What is a Grey Fleet, is your company at risk?

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Posted by Maddison Brown on 09 Jun 2021

Any company that has mobile staff must have a way for them to get from A to B. Whether it be Uber for business, a company-provided car or a personal car that the user claims back the mileage on.

Companies need to understand their legal and insurance obligations when it comes to their fleet; it's worth getting professional advice in this area to ensure you are covered. If you drive in any city or large town during working hours, you'll see many cars driven by people doing business. Some of these will be company cars, but many will be grey fleet cars.

What is grey fleet?

A 'grey fleet' consists of vehicles that employees personally own, but they are used for business travel.

Some businesses allow an allowance for a car rather than use a company car. However, if the vehicles are being used for work purposes, they still fall under the Health and Safety at Work Act 2015 guidelines that a vehicle is a place of work; therefore, the PCBU (person conducting a business or undertaking) has a responsibility for the vehicle.

What are some key considerations?

Businesses must ensure that drivers of grey fleet vehicles are qualified to drive them and that the vehicles themselves are roadworthy and legally allowed to be on the road.

  • The vehicle must be roadworthy, with a current WoF and Registration.
  • The vehicle must not be loaded in excess of its capabilities.
  • Insurance for work purposes.
  • Your company may want to consider a grey fleet management system

Other obligations of workplaces such as license class, compliance with logbooks, no driving impairments etc, are also important to consider for your grey fleet

The grey area of grey fleet: 

Consider a scenario such as a personal vehicle being used to get to an airport to catch a flight for business purposes. It could be argued that a private vehicle is being used for business purposes in this situation. These kinds of scenarios are worth considering when implementing a grey fleet policy.

Grey fleets make up a large part of the NZ business vehicles. If you are running a grey fleet, it is worth checking with your insurance company whether these vehicles are covered and for what purposes before getting caught out in a situation where your business may be liable.

n3 has a large range of Vehicle related suppliers who can help you keep your fleet safe and roadworthy, from tyres to batteries, fuel to vehicle servicing. Check out our Suppliers here

This article is not intended as advice but to inform readers about grey fleets.

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