Employees using their own vehicle

Are there any obligations/requirements a company should be aware of when requesting an employee use their own vehicle for ad-hoc work purposes?

This is a great question and one that is being asked more frequently as organisations increasingly prefer staff to use their own vehicles rather than provide a company car.

If an employee has been asked by their employer to use their own vehicle for ad-hoc work purposes the following should be taken into account and, ideally, included in an appropriate policy:

Reimbursement of travel expenses

Clauses relating to the reimbursement for employee travel expenses may be found in a relevant Enterprise Agreement or Modern Award (some awards provide for a vehicle allowance should an employee be required by their employer to use their vehicle in the performance of the employee’s duties).

If the employee is not covered by an enterprise agreement or modern award, or if the award covering the employee is silent on travel expenses, the Australian Taxation Office (ATO) can be used as a reference. The ATO provides a list of set monetary rates for each kilometre travelled based on vehicle size.

With regard to the reimbursement of travel expenses it is important that an appropriate policy includes the following:

• the rate of reimbursement for kilometres travelled;
• procedures for claiming expenses including any sign-off process that might be required before any travel is viewed as work-related; and
• responsibility for any road tolls or parking expenses incurred whilst employees use their own vehicles for work purposes (as these costs are incurred in the course of employment, in most cases the employer would reimburse employees for road tolls and parking expenses).

To help keep track of costs the employer should consider providing the employee with a logbook or a Motor Vehicle Expense Claim Form for recording journeys undertaken.

Health and safety

The employer should assess the safety risks involved and consider strategies to minimise these. This may include

• introducing policies relating to safe driving and the use of mobile devices while driving for work purposes;
• providing training for employees in safe driving practices;
• appropriate fatigue management practices (if relevant);
• prohibiting driving whilst impaired by alcohol and legal or illegal drug use; and
• ensuring that the employee’s vehicle is suitable for use by the employee in performing their duties.

Infringements

It should be made clear to the employee that they are required to have a valid driver’s licence, and that their car is roadworthy, fully insured and registered.

The employee should be informed that if they receive any traffic infringement notices whilst driving for work purposes that the employee will be responsible for the payment of the fines.

Finally, any policy should indicate any disciplinary outcome that may result due a breach of the policy.