When organisations think about fleet management, their focus is typically on the vehicles they own, lease, or operate directly. However, one significant area often overlooked is the grey fleet — vehicles owned and driven by employees to perform work-related tasks.
Grey fleet is a growing blind spot for many organisations. It is a real and serious risk that needs to be addressed within your fleet policy to ensure full compliance with workplace health and safety obligations.
What is Grey Fleet?
Grey fleet refers to any vehicle not owned by the organisation but used for business purposes. This could include an employee using their private car to attend meetings, transport equipment, or deliver goods. Even though the organisation doesn’t own the vehicle, it becomes a workplace when used for business activities.
Under Australian workplace health and safety laws, employers have a duty of care to ensure a safe work environment — and that includes vehicles used for work, no matter who owns them.
The Hidden Risks of Ignoring Grey Fleet
Senior executives and even experienced fleet managers often fail to include grey fleet in their risk assessments and fleet management strategies. This oversight can expose organisations to significant risks, including:
- Legal liability if an employee is injured or causes an accident in an unsafe or unroadworthy vehicle while working
- Insurance gaps, where private insurance policies may not cover work-related driving
- Reputational damage if accidents occur and reveal poor organisational oversight
- Operational inefficiency, as grey fleet usage often lacks cost controls and standardisation
Ignoring grey fleet undermines the hard work that goes into managing compliance, safety, and cost control for the formal fleet.
Why Grey Fleet Belongs in Your Fleet Policy
Your fleet policy should provide clear guidelines for all vehicles used for business purposes — including grey fleet vehicles. This ensures a consistent approach to managing risk, compliance, and operational efficiency across the entire organisation.
A strong grey fleet section in your policy should cover:
- Minimum vehicle standards (e.g., age limits, safety ratings, maintenance requirements)
- Insurance requirements (proof of comprehensive insurance for business use)
- Licence and registration checks
- Reimbursement processes and limits for grey fleet usage
- Driver obligations regarding fatigue, mobile phone use, and incident reporting
By formalising these requirements, organisations can demonstrate they are actively managing workplace risks and fulfilling their legal obligations.
Closing the Grey Fleet Blind Spot
Organisations need to acknowledge that a vehicle is a workplace regardless of who owns it. Just as you wouldn’t allow an unsafe piece of machinery on a worksite, you shouldn’t allow unsafe or non-compliant vehicles to be used for work tasks.
Partnering with an experienced fleet consultant like WLC Fleet Consulting can help you review your current fleet policy and ensure grey fleet is properly addressed. WLC can assist with drafting clear guidelines, setting up audit processes, and helping you manage the risks associated with employee-owned vehicles.
Don’t let grey fleet be the blind spot that exposes your organisation to unnecessary risk. Include it in your fleet policy today and take a proactive step towards safer, smarter fleet management. Contact WLC Fleet Consulting to get started.
