Sample Company-Supplied Motor Vehicle Policy

A motor vehicle policy helps employers to clearly articulate the organisation’s approach to the use of motor vehicles for work purposes. It also provides a framework for employees to understand the organisation’s guidelines and generates an opportunity for clarification.

Employers may choose to approach the use of motor vehicles in a range of ways. This sample policy provides options for scenarios where the employer provides a business-maintained vehicle which an employee can take home, or where a fleet of fully maintained vehicles are available which employees may access as required.

If an employer does not wish to provide business-owned vehicles to employees, a common alternative is to agree with employees to use their own vehicles and provide an allowance to reimburse the employee for the costs of the vehicle use. Many modern awards provide a per kilometre allowance where an employee is required to use their own vehicle for work purposes where this option is used.

It is extremely common for employees who are required to use a vehicle for work purposes to have questions and/or concerns that need addressing. It should be noted that many employees have experienced multiple different motor vehicle policies at other organisations and it is therefore imperative that this is appropriately clarified both through policy and leader discussion.

Employers should seek advice from Australian Industry Group in tailoring this policy to the particular needs of the organisation. Please call the Workplace Advice Line on 1300 55 66 77 for assistance.