Funded Vehicle Policy

Funded Vehicle Policy

The provision of a funded vehicle must be an organisational necessity and not a perquisite or confirmation of status or grade. Some vehicles are provided solely for business use (usually vans or minibuses); others (usually cars) will be supplied to individuals for work use but with permission for private use on certain conditions.

Procedure:

1 Allocation

1.1 No member of staff has a right to a company vehicle with permission for private use (unless there is a contractual commitment pre-dating this policy). Provision of vehicles is a matter of discretion by Hafal having regard to organisational needs, available funding and other relevant factors. Vehicles will only be funded if it is clearly demonstrable that this option is more cost-effective to the organisation than alternative means; however, the organisation will not necessarily provide vehicles even if this is demonstrable.

1.2 Provision of vehicles (whether with permission for private use or not) must be authorised by the Chief Executive and in the case of any vehicle of which the Chief Executive would have benefit this must be authorised by the Chair of Trustees. 1.3 Vehicles will be sourced by any suitable means determined on the basis of

cost-effectiveness. Vehicles supplied with permission for private use will be of a type and specification limited by a re-viewable benchmark. The benchmark limit until further notice is: vehicles must be of a type and specification available from Days Contract Leasing or similar vehicle leasing scheme based on 20,000 miles per annum for three years with a maximum monthly cost of £325 total inclusive of maintenance on a Contract Purchase basis. Vehicles of lesser type and specification may be supplied and the benchmark does not limit sourcing arrangements to the leasing option. Sourcing will be imaginative and thorough to identify best value: this may limit the choice of type and specification in addition to the benchmark limit.

1.4 The benchmark limit may not be exceeded without authorisation by the Chair of Trustees and will only be done for organisational reasons (including disability of the driver).

1.5 Vehicles will be sourced on the basis of sustaining them for a minimum of three years (shorter if second-hand) with no specified upper limit: however, safety must not be compromised through excessive age of vehicles.

2 Declaration

2.1 Employees are required to agree in writing to this policy before a vehicle is provided 2.2 Employees are required to show their line manager proof that they have a valid

driving licence and that such licences are possessed by all drivers authorised to use the vehicle whenever requested to do so.

2.2 When a car is handed over from one driver to another all significant damage and defects must be the subject of a written report (copy to the Company Secretary) before the vehicle is used by the new driver.

3 Authorised Drivers

3.1 Vehicles are supplied for staff use.

3.2 Hafal entirely at its discretion may give permission to members of employees’ families to drive a funded vehicle for private not business use (note in this context “business use” includes use to and from a place of work) with the consent of the employee. Permission must be sought and given in writing by the Company Secretary before such use is made. To comply with the requirements of our insurers employees must provide the following information to the Company Secretary, on or before taking possession of the funded vehicle, in respect of any authorised driver under 25 years of age:

 Age and date of birth

 Date of issue of full licence

 Any relevant convictions/endorsements

 Occupation and relationship to employee

3.3 The employee must meet the cost of any increase in premiums or compulsory excess as a result of registering a driver under 25 years of age.

3.4 In a one-off emergency any driver over 25 (and in exceptional circumstances under 25 years) who has held a valid driving licence for at least two years may drive the funded vehicle. An emergency is defined as any situation in which an authorised driver is unable to drive due to ill-health or accident but not due to intoxication or licence suspension and where use of the car is essential. The Company Secretary must be informed as soon as is practical, who will pass on the circumstances to the vehicle insurers.

4 Car Costs

4.1 Hafal is responsible for the payment of road tax, insurance, MOT testing and all standard servicing and maintenance charges.

4.2 Any fuel and oil may be charged to the driver’s business card or be reclaimed from Hafal on production of an approved expenses claim form, supported by receipted bills. Normally this should be done on the last day of each month.

5 Maintenance

5.1 It is the employee’s responsibility to ensure that vehicle is kept in good repair and generally maintain it in an efficient roadworthy condition, complying with existing legal requirements. This includes antifreeze levels, windscreen washer fluid levels, tyre pressure and treads, lubricant and hydraulic levels and all brakes and lights. 5.2 The vehicle must be cleaned internally and externally on a regular basis by the

employee.

5.3 Employees are required to identify the MOT date and the service date(s) in line with the vehicle logbook and mileage record and to make the appointment for service with a garage approved by Hafal or the leasing company.

5.4 Hafal will never delay repairs or servicing for their vehicles. Employees are expected to refuse to drive any vehicle which is unsafe through being overdue for repairs or servicing.

5.5 If the car is used in contravention of these conditions any resulting damage will be the absolute responsibility of the employee to whom the vehicle has been issued. Further, such use will render the employee liable for the full costs, to disciplinary proceedings and to withdrawal of the vehicle.

6 Alterations to Vehicles

6.1 Hafal drivers are not permitted to carry out any alterations to the company vehicle, nor are they permitted to fit stereo equipment, fog lamps or other accessories without written authorisation from the Company Secretary. Where Hafal authorises “extras” connected with safety, Hafal will pay for them.

6.2 Hafal will purchase vehicles with integral “hands free” telephone kits or alternatively install a kit as soon as is reasonably practical for users who need to use their mobile phone while travelling. Mobile telephones are not to be used whilst driving Hafal’s vehicles unless ‘hands free’ technology is used.

7.1 The car may be used only for the following purposes: a) In connection with Hafal business

b) Social, pleasure or domestic use as defined in this document, but this is a concession which Hafal reserves the right to withdraw at any time without notice. The cost of fuel for private use (including travel to and from the Hafal place of work) must be met by the employee: see Hafal’s expenses policy for details.

7.2 Hafal permits the use of the vehicle outside the UK for business purposes and for private motoring subject to the following clauses:

Before travelling abroad:

 Employees must give at least one month’s notice in advance of the journey to obtain the “green card” insurance.

 Employees must obtain “repatriation insurance” and coverage by vehicle recovery must be obtained at the employee’s expense (except where this is required for business travel).

7.3 To comply with the requirements of our insurers the car may not be used for:

 Any business purposes other than those taken on behalf of or approved by Hafal

 Hire or reward (either goods or passengers)

 Driving tuition of any nature

 Transporting hitchikers

 Towing* racing, pacemaking, rally driving or any other competitive event. *A funded vehicle may be used for towing trailers, caravans etc provided that the manufacturer’s guide specified maximum load is not exceeded. Note: Third Party insurance cover only applies to the trailer or caravan.

7.4 If the car is used in contravention of these conditions any resulting damage will be the absolute responsibility of the employee to whom the vehicle has been issued. Further, such use will render the employee liable to disciplinary proceedings and to withdrawal of the vehicle.

8 Excess Insurance

8.1 If at any time an individual Hafal driver or one of his or her nominated drivers has a claims record which requires Hafal’s insurers to impose an increased compulsory excess or premium, the Hafal driver will have to bear the amount of this excess, i.e. the difference between the original premium or excess and the new premium or excess.

9 Expiry of Vehicle Road Fund Licence

9.1 The new vehicle licence should automatically be sent to the individual Hafal driver by the Company Secretary. If this does not occur employees are required to notify the Company Secretary in writing on the first available work day of the expiry, or imminent expiry, of the vehicle’s road fund licence.

10 Theft or Damage

10.1 Employees are required to report the loss of or damage to the funded vehicle to the police in the first instance and then to provide a written report to the Company Secretary on the next working day.

10.2 An insurance form must also be completed promptly and returned to the Company Secretary.

11 Accidents

11.1 In the event of an accident involving the vehicle, employees are required to notify the Company Secretary as soon as is possible after the accident. The funded vehicle user is responsible for obtaining particulars of any persons involved in the accident as well as the names and addresses of witnesses. An accident report form must be completed within 48 hours of the date of the accident and forwarded to the Company Secretary. Employees are required to pass on to the Company Secretary any correspondence received, unanswered, by return post and these matters will be dealt with promptly by Hafal.

12 Temporary Replacement of Vehicles

12.1 Where the permanent vehicle is under repair, employees are permitted to hire a temporary replacement only with prior authorisation of the Company Secretary who will also action the insurance.

13 Motoring Offences/Fines

13.1 The driver of the vehicle must drive within the law including :

 Obeying the Highway Code and all applicable traffic regulations

13.2 The driver must not use the vehicle for any activity which could bring Hafal into disrepute e.g. kerb crawling.

13.3 Endorsements to driving licences and any fines imposed are the responsibility of the Hafal employee to whom the car is allocated or the authorised Hafal driver in possession of the vehicle.

Hafal will not accept responsibility for the endorsements or the payment of any penalty which may be imposed upon the car user. Any outstanding fines paid by Hafal will be deducted from the employee’s pay, subject to the restrictions of the Wages Act 1986. 13.4 Employees are required to notify the Company Secretary in writing of any motoring offences of which they, or their nominated drivers, have been charged or convicted.

14 Withdrawal of the Vehicle

14.1 Employees are required to make the necessary arrangements for the prompt return of the vehicle in the following circumstances:

 Termination of employment

 Long term absence (with the exception of maternity leave)

 Any medical condition or treatment which prohibits driving

 Extended leave, given by permission of Hafal

 Violation of Hafal car rules and agreement

 Careless driving, excessive number of accidents (as defined by the insurers), disqualification or convictions.

14.2 Hafal will require the vehicle to be returned to an agreed Hafal office in a clean and road worthy condition.

14.3 Hafal also reserves the right to withdraw the funded vehicle should the holder’s job change to the extent that a car is no longer required to fulfil job duties.

This policy/procedure does not form part of any employee’s contract of employment and may be changed to meet the needs of the organisation as a whole.