How To Prevent Misuse Of Company Cars

Apart from regular service and maintenance to keep your company car in top shape, there are some aspects to consider if you want to prevent them from being misused at your expense.

  • Have clear and detailed policies for company car use and protocols to follow in case of accidents or unforeseen events.
  • Keep a database of drivers or employees with copies of their current driving licenses.
  • Before entrusting an employee with your company car, it is worth doing a background check so you’re aware of any driving misconduct or fines that they have been issued with in the past.
  • Install and use GPS tracking technology in all your company cars so you are aware of their location at all times. This will be especially useful in case a car is vandalised or stolen.
  • Fleet tracking software or apps can also help ensure the company cars are being used solely for business and your employees aren’t taking advantage or slacking off on the job. You can ask employees to download the app on their phone to be used only while they are clocked in. Misusing a company car is a serious breach of contract and can be grounds for termination unless they have prior permission to do so.
  • Keep written records and contracts if you do decide to permit an employee to use a company car for personal use as you may be liable for Fringe Benefits Tax.
  • Opt for comprehensive insurance plans that cover the costs of repairs or losses in the most common scenarios instead of a basic insurance plan. Having that extra level of protection can save you thousands of dollars in the long run.
  • Speak to your lawyer about the possibility of installing dashboard cameras in your company vehicles if you suspect ongoing misconduct or misuse.

Is it legal to track company cars employees use?

As a business owner, you are well within your rights to monitor employees while they are on the job, although there are some strict limitations regarding this. The best option would be to consult with your company lawyer on things you can and cannot do when it comes to monitoring and surveillance. Installing tracking software in vehicles owned by your company is perfectly fine as long as you mention it in company policy documents and employee contracts. Also, it would be wise to have a clear sign inside the vehicle mentioning that the vehicle is being tracked at all times. Same applies if you want to install security cameras in a company vehicle. Any action that can be seen as a violation of employee privacy must be carried out only after employees have been given written notices specifying these actions and have signed agreement letters.

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