Employee-Owned Vehicles Policy

Purpose

This document sets out the terms and conditions associated with employees driving their own vehicles for work purposes. This policy applies to all [insert company’s name] (Company) employees using their vehicles for work.

Definitions

To make sure everyone has a common understanding, the following definitions apply:

  • Work-related driving is operating a motor vehicle in the course of your work, including driving to and from Company work sites and offices, and client or contractor offices or work locations. It may also include other driving approved by your supervisor. Work-related driving typically does not include commuting from your home to your primary workplace.
  • An employee-owned vehicle is a vehicle for which the employee is the registered owner or the sole signatory of a vehicle-lease agreement.

Responsibilities

The [insert title of person responsible for this policy] is responsible for the overall implementation of this policy. He/she must:

  • Consult with the employee and his/her supervisor before authorizing an employee to use his/her own vehicle for work.
  • Review the policy annually with drivers, supervisors and management, and make necessary improvements and updates.
  • Store and track associated documents (signed procedures, copies of vehicle insurance, completed inspection/mileage logs and maintenance records).

Supervisors are responsible for confirming that employees and employee-owned vehicles satisfy, and continue to satisfy, the terms and conditions of this policy. Supervisors will:

  • Before recommending that an employee use his/her vehicle for work, confirm the employee is legally authorized to drive, visually inspect the vehicle, provide the employee with a copy of this policy, review it with them and receive a copy with their signed agreement.
  • Receive and check vehicle insurance, inspection and maintenance records.
  • Periodically conduct ride-alongs to confirm the employee continues to meet driving requirements, and spot-check that vehicles are being properly inspected and maintained.

Employees are responsible for satisfing the terms and conditions of this policy. In addition to requirements below, employees will:

  • Complete and provide necessary records to their supervisor in a timely manner
  • Cooperate with supervisors during vehicle spot-checks and ride-alongs
  • Immediately tell their supervisor of any relevant changed circumstances, such as licence suspension, new or different vehicle, vehicle not available for use, etc.

Vehicle criteria

The [insert title of person responsible for this policy] will apply the following criteria before approving any employee-owned vehicle for work use. The vehicle:

  1. Must be suitably designed/configured and equipped for its intended use.
  2. Must satisfy requirements of the Motor Vehicle Act and other applicable statutes.
  3. Must be in sound mechanical condition. For vehicles more than five years old, The Company may require the employee to provide a thorough inspection report from a licensed mechanic.
  4. Must be equipped with an anti-lock braking system and electronic stability control.
  5. If a 2011 or newer model, must have an NHTSA overall crash rating of four or five stars.
  6. Must not have features or modifications that negatively influence vehicle handling dynamics or safety (lift kits, after-market bumpers, non-standard wheels or tires, etc.), driver visibility (dark window tints, stickers on windows) or compromise the company image (paint scheme or graphics).
  7. Should not be more than 10 years old or have more than 300,000 km of mileage. The [insert title of person responsible for policy] will consider the nature and extent of intended vehicle use and may approve vehicles that do not meet these criteria.

Licensing and insurance

Before using his/her vehicle for work, each employee will properly register, license and insure his/her vehicle, including:

  • Third-party liability insurance coverage of at least $2 million, plus collision and comprehensive coverage with deductibles of not more than $1,000.00.
  • Correct rate class coverage. For example, ICBC rate class 002 and 003 allow commuting plus six days of business/work use per month. Employees who use their vehicle for work purposes more than six days a month will carry business-class insurance (e.g. class 007/027).

Each employee will:

  • Have, maintain and renew insurance coverage while the vehicle is used for work.
  • Provide the Company with a copy of the current insurance documents before using the vehicle for work and when the policy is renewed or changed.

Vehicle inspection and maintenance

Each employee will inspect and maintain their vehicle consistent with legal requirements, and Company procedures. The employee will:

  • Inspect the vehicle according to steps described in the Vehicle Inspection Procedure.
  • Record inspection results using the Daily Vehicle Inspection Form and Mileage Log, and provide completed logs to their supervisor on request, and at least monthly.
  • Ensure the vehicle is maintained consistent with manufacturer recommendations (as described in the vehicle owner’s manual) using a licensed mechanic where appropriate.
  • Provide maintenance records to their supervisor on request, and at least annually.

General driving requirements

At all times, the employee will operate their vehicle consistent with legal requirements and Company procedures. The employee will:

  • Operate the vehicle in a manner that meets requirements in the Motor Vehicle Act and its Regulations, the Workers Compensation Act and the OHS Regulation, and other driving laws.
  • In winter, equip the vehicle with competent winter tires (e.g. sufficient tread depth).
  • Comply with driving practices explained in our following procedures:
    • Safe Driving Procedures
    • Driving Alone and Check-In Procedures
    • Mobile Communication Device Procedures.

Emergency equipment

The vehicle owner is responsible to have in their vehicle a Vehicle Emergency Kit containing items identified in our Vehicle Emergency Kit Guide, and to maintain that Kit as described in that Guide.

Incident reporting and investigations

If involved in a motor vehicle incident, employees will cooperate to help the Company meets its obligations, and to take steps to prevent future occurrences. The employee will:

  1. Immediately report crashes to their supervisor.
  2. Complete the Motor Vehicle Incident Reporting Form and submit it to their supervisor.
  3. Cooperate with their supervisor to complete necessary reports.
  4. Be willing to participate in the incident investigation, and work with the investigation team to facilitate the investigation, report and corrective measures.

Operating expenses and reimbursement

All purchase, insurance and licensing, operating, maintenance and repair costs associated with using their vehicle for work are the responsibility of the employee/vehicle owner.

The employee will submit expense claims consistent with Travel Expense Claim Procedure.

The Company will reimburse the vehicle owner for work-related use at a rate of ___________per km for normal highway use, and _____________per km for off-road use circumstances.

The Company will reimburse the owner for parking costs associated with work-related vehicle use.

Signatures

I have read and understand the terms and conditions of this policy and agree to comply with them.