Motor Vehicle Policy

Does this apply to me?

This Policy applies to you if you use a motor vehicle for work purposes, whether it is your own vehicle, a vehicle supplied by [the Company], or a rental or car-share vehicle.

If you are driving for work related purpose then the following rules apply (note that journeys from your home to work, and return journeys from your work to home are in most cases not work related and are considered private journeys, but a number of these provisions reflect legal requirements, common sense or both):

Licence and insurance

All drivers must have a valid driver’s licence issued in the State in which you reside. If you have changed address recently, you must notify the appropriate licencing authority promptly to change your licence.

You must ensure that any vehicle you drive has, as a minimum, compulsory third party injury insurance.
Ideally, the vehicle should have comprehensive insurance as well—if you drive without comprehensive insurance, you should be aware that you do so at your own risk and the Company will not meet any costs related to any accident you may incur.

Vehicle standard

You must not drive a vehicle that is not properly registered.

All vehicles should be roadworthy and you should not drive a vehicle with obvious faults unless you are certain that the faults are minor and do not pose a risk to health or safety to any person (including you). If in doubt, do not drive the vehicle and seek to have the vehicle repaired (if you are the owner) or the fault reported (if you are not the owner).

You should regularly check trye pressure, tread thickness, brakes, and all fluid levels (oil, coolant, water, brakes). You should adjust aspects of the vehicle to suit your size and height wherever possible (for example, check rear vision mirrors are correct, adjust height of steering wheel if possible, adjust seating).

Obey Road Rules

You must follow all applicable Australian road laws. This incudes, but is not restricted to, laws about speeding, driving under the influence of drugs or alcohol (see below) or using mobile telephones (see below), as well as rules about driving itself. It includes rules about parking, including local or other regulations such as time restrictions in car parks. It is your responsibility to keep up to date on applicable road rules.

Under no circumstances will [the Company] be responsible for any fines or infringement notices issues. This includes any speeding, driving or parking fines.

Use of Mobile Phones

The use of hand held mobile phones whilst driving is illegal and also very dangerous. While your vehicle is moving or stationary (but not parked), as a driver you may only use a mobile phone to make or receive a call or use the audio playing function if:
1. the mobile phone is secured in a fixed mounting; or
2. the mobile phone does not require you to touch or manipulate the phone in any way including touching the screen / keypad to make, receive or end a call
Even with exceptions 1 and 2 above all other functions including texting, video messaging, online chatting, reading preview messages and emailing are prohibited.
It is recommended that you pull over to the kerb in a safe position to make and receive any calls.
Please ensure that you do not use the mobile phone whilst you are refuelling the vehicle.
Do not leave your mobile phone unattended in a vehicle. The Company is not responsible if your mobile phone is stolen from your vehicle. This also applies to any other item of value you leave in an unattended motor vehicle.
Driving Under the Influence of Alcohol or Drugs
Driving with an alcohol content over the legal limit or under the influence of drugs is illegal. The consequences of driving under the influence of drugs or alcohol may include personal penalties such as fines and/or jail sentences as well as financial penalties associated with the avoiding of insurance cover and damage to property expenses.
If you are found to be driving under the influence of drugs or alcohol you will be responsible for the payment of any fines.
In some circumstances, if you are found to be driving under the influence of drugs and/or alcohol, you may be subject to disciplinary action including termination of employment.
Note that some prescribed and over-the-counter medications can cause drowsiness or affect your ability to drive safely. Some increase the impact of alcohol, making it unsafe to drive, even if you are under the legal limit. Always follow any directions on the medication, and if in doubt, ask your doctor or pharmacist.
You must not refuse or fail to take any blood analysis or breath test requested by the police. Failure to take a test, as well as being an offence, will also be treated seriously by [the Company] and may result in disciplinary action against you.
[The company]’s Drug and Alcohol policy also applies [insert link to Flare document].
Safe and Professional Driving
You should drive in the safest way possible. This includes being mindful of:
Fatigue. Do not drive when you are tired. It is recognised that fatigue is a major cause of motor vehicle accidents. [The Company] recommends all drivers ‘stop and revive’ every two hours and to avoid driving at night during hours in which you normally sleep. Plan your trip with regular breaks—a fifteen-minute break for every two hours of continuous driving.
Conditions which may affect road surfaces, for example, ice, water, gravel, pot holes etc.
Advisory road signs: these are erected for a purpose by the traffic authorities and you should follow them.
Always be courteous to other drivers. Your conduct on the road should be professional at all times.
This Policy
This Policy may be amended at any time at the discretion of [the Company].
For the avoidance of doubt the terms of this policy do not form part of your contract of employment, but are a reasonable and lawful direction which [the Company] requires you to follow.

Does this apply to me?

This Part of the Policy applies to you if you are eligible to use a vehicle supplied by [the Company] (“Company Vehicle”). Part A also applies to you.


Company Vehicles will from time to time be allocated to personnel for personal and Company usage. Selection, allocation and replacement of Company Vehicles is at the sole discretion of [the Company].

Company Vehicles may be allocated either on a continual basis (that is, you drive a Company Vehicle all the time, including to and from home, and on holidays) or on a casual basis (for example, you may be required to take a Company Vehicle to purchase supplies, or to attend a meeting and return). If you are given a Company Vehicle on a continual basis, this will either be set out in your contract of employment or in separate documentation. If you have a Company Vehicle of a continual basis, you will be referred to as the “Nominated Driver” in this Policy. If you are required to drive a Company Vehicle on a casual basis, you will be referred to as an Occasional Driver for the purpose of this Policy.

Additional requirements to Part A
Note that while you are driving a Company Vehicle (either as a Nominated Driver or as an Occasional Driver), there are additional requirements to Part A (but Part A also applies).
You must not drive a Company Vehicle under the influence of any drugs or alcohol; that is, you must be drug and alcohol free while you are driving a company vehicle.
You must, prior to starting a Company Vehicle for the first time each day, check the water, oil, fluids, tyres, fuel level and all of the vehicle’s safety items to ensure that it is safe to drive and to prevent any damage to the vehicle.
If you are the Nominated Driver, you must also ensure that you monitor the service and repair requirements and organise for the service and repair of the vehicle as appropriate. Wherever possible all repairs should be pre-approved by [title/name of the person who is required to approve repairs].
Company Vehicles should be kept in a clean, neat and tidy condition. If you are the Nominated Driver, it is your responsibility to wash, vacuum and clean the vehicle. If you are the Occasional Driver, it is your responsibility to ensure that the vehicle is returned clean and safe to drive. Occasional Drivers should report any defects to [the Company]. Failure to keep the vehicle in a clean, neat and tidy condition or failure to ensure appropriate maintenance of the vehicle may result in disciplinary action including removal of the vehicle from you.
You must ensure that you, any other driver, and any passengers do not smoke in a Company Vehicle at any time.
You must not use, or allow a Company Vehicle to be used for any illegal purpose, take part in a motor rally or race, or to push anything or carry more passengers or load than that for which it was built.
You must not use, or allow a Company Vehicle to be used, to carry passengers for payment of any kind. This includes, but is not restricted to, use of a Company Vehicle for a service like Uber or for car sharing systems.
You must not (and must not allow others to) abuse or misuse a Company Vehicle or use it (or allow it to be used) when it is damaged or unsafe or use it (or allow it to be used) in conditions for which it is unsuitable such as unsealed or unmade roads or surfaces.
You must not (and must not allow others to) use the vehicle for the conveyance of any load which is incorrectly loaded or secured or is in excess weight of that for which the vehicle was constructed.
You must not (and must not allow others to) drive or use the vehicle in contravention of the provisions of any road traffic or other applicable legislation.
E-Tags (or any other electronic devices installed for the purposes of recording toll charges) placed in Company Vehicles must not be transferred to private vehicles under any circumstances.
If your Company Vehicle is fitted with a tracking device for business purposes, you must not under any circumstances disable or interfere with the device. See Surveillance Policy [insert link to Flare document].
Nominated Drivers Conditions of Use
As a trusted employee to whom a Company Vehicle has been allocated, you are responsible for the garaging and general security of the Company Vehicle.
The Company will bear the cost of:
All maintenance and running costs including petrol, oil, servicing, etc;
Registration costs;
Comprehensive insurance costs;
Parking on Company business (this does not include everyday parking before, during or after working hours, and does not apply to parking fines, which are your responsibility);
NRMA membership; [delete if not included] and
Toll charges on Company business only (not from home to work or vice versa).
You shall bear the cost of:
Overnight garaging the car;
Maintaining the car in a clean and presentable condition at all times;
Tolls and parking fees associated with travelling to and from work (other than when driving to an external location on business);
Any fines or penalties associated with your use of the Company Vehicle.
If you have been allocated a new vehicle from a motor dealer as a Nominated Driver, unless it has already been done, immediately upon receipt of the vehicle documentation, you must provide a copy of the Registration Papers and all other relevant security information and spare keys, to [the Company] for data base entry and safe-keeping to ensure correct details of the Company asset are recorded and filed. [delete or modify as necessary]
You must ensure that your vehicle is in an operationally efficient and safe condition at all times. This means that you must arrange for all scheduled services, as per the manufacturers hand book, to be carried out. While the vehicle is under the manufacturer’s warranty period, servicing must be done by a person recognised by the manufacturer (usually a manufacturer’s dealership or service centre). Before presenting the vehicle for service, you should obtain approval from [the Company] for any service, repairs and maintenance. Not all minor damage to cars will be repaired if there is no safety or reliability consideration. You must not authorise additional repairs brought to your attention by the dealership unless you obtain the approval of [the Company].
To enable [the Company] to maintain an accurate historical record of services, repairs, replacement, parts, etc for each vehicle, you must provide a copy of all relevant invoices to [the Company].
Subject to this Clause, a Company Vehicle allocated to you as a Nominated Driver may be used for reasonable private use, provided that you contribute to fuel costs incurred where the distance travelled is considered outside reasonable practice, for example, interstate and long trips whilst on annual leave.
The reference to “private use” includes use by your spouse or partner and, limited use by other immediate members of your family. You must advise [the Company] of the names and ages of all persons who will drive the Company Vehicle and their relationship to you. Note that a person who holds a learners or a provisional licence, or a person under the age of 25 years [adjust if insurance stipulates a higher age], may not drive a Company Vehicle, without the express consent of [the Company]. Each person must have a valid licence to drive and must agree to be bound by Part A of this Policy.
A Company Vehicle is required to be available for use by [the Company] on every normal working day (except when used by you on holidays) and must be made available for business use by an Occasional Driver where [the Company] so requests and that Occasional Driver has completed the required form identifying them as the driver of the vehicle for that specific business task.
Other than as set out above, the vehicle must always be available for use by you on the Company’s behalf and you should use it for all local business related travel unless you have express approval to use some other form of transport.
You must not use your Company Vehicle to travel outside the State you normally reside in while you are on holidays unless you have written approval from [the Company].
In the event of an accident involving your Company Vehicle while it was being driven by an immediate family member named in Clause C3.8, and the driver is convicted of driving whilst under the influence of alcohol or drugs, you must bear the costs of repairs to the Company Vehicle and any other liability to others incurred as a result of the accident. If you were the driver of the vehicle at the time of the accident and you were under the influence of drugs or alcohol (whether or not you are convicted of driving whilst under the influence of alcohol or drugs), you must bear the costs of repairs to the Company Vehicle and any other liability to others incurred as a result of the accident.
In the event of an accident involving your Company Vehicle while it was being driven by someone other than you, an immediate family member named in Clause C3.8 or an Occasional Driver, you will be expected to bear the costs of repairs to the Company Vehicle, including insurance excesses, should the Company’s insurers be unable to recover costs. This will not apply if you can demonstrate that you did not authorise the driver to use the Company Vehicle and that you took all reasonable steps to ensure that the Company Vehicle could not be used without your approval.
In event of an accident involving your Company Vehicle while it was being driven by an Occasional Driver, the Company will be responsible for costs of repairs (unless the Occasional Driver is responsible under this Policy).
Occasional Drivers Conditions of Use
C4.1 You must not use a Company Vehicle unless you have been approved to use that vehicle, and (if the Vehicle is allocated to a Nominated Driver) advised the Nominated Driver of the time, estimated distance to be travelled and estimated time of return. Unless expressly approved by [the Company], a Company Vehicle must only be used by an Occasional Driver for business use.
C4.2 You must sign the Vehicle Register prior to being issued with keys and sign off upon return.
C4.3 You should complete the log book for the vehicle each time you use and return a company vehicle. This is a requirement that also assists you to avoid a dispute regarding responsibility for Infringement Notices received, or minor damage claims. Unless signed off on return of the vehicle, the onus rests with you if any fines are received or damages reported. The log book will require the following details to be entered into the log book:
the odometer reading prior to the commencement of the trip;
the odometer reading at the completion of the trip;
where the vehicle travelled;
the name of the person driving the vehicle;
details of any fuel, oil or any other fluid added to the vehicle; and
any maintenance notes for attending to the vehicle.
C4.4 In the event of an accident involving your Company Vehicle while it was being driven by you, and you were under the influence of drugs or alcohol (whether or not you are convicted of driving whilst under the influence of alcohol or drugs), you must bear the costs of repairs to the Company Vehicle and any other liability to others incurred as a result of the accident.
In the event of an accident, theft or other loss or damage
In the event of an accident involving a Company Vehicle, the following procedures must be followed:
Obtain all necessary details from the other driver including:
The other driver(s):
Name of driver;
telephone number;
approximate age;
licence number;
name of insurance company.
The other vehicle(s) involved
owner’s name and address (if not the driver)
registration number
number of people in vehicle
The accident
time and date of accident
names and addresses of any witnesses
location details (street, suburb, town) (include sketch of scene, photograph scene of accident if possible and safe to do so)
brief description of what happened
Particulars of damage
to Company Vehicle (photograph damage if possible and safe to do so)
to other vehicles (photograph damage if possible and safe to do so)
to property (photograph damage if possible and safe to do so)
Details of Police action:
Name and Station of Police Officer attending
Whether charges likely to be laid (as intimated by Police)
Report the accident immediately to the Company.
Do not admit responsibility for the accident or sign any acknowledgement in respect of the accident.
You must not authorise repairs of any vehicles under any circumstances unless you have approval from [the Company].
Police should be called to the scene of an accident in the following circumstances:
if any person is injured and the ambulance has been called as a result of the accident; and
if any damage has been done to third party property.
If the police do not attend the accident, report the accident to the nearest police station.
If you sustain an injury as a result of an accident whilst driving a Company Vehicle, the injury must be reported to [the Company].
Theft of property from a Company Vehicle:
Property belonging to [the Company] must not be left unattended in a motor vehicle.
Personal property left in a company motor vehicle is not insured. Therefore, wherever practicable, you should not leave any valuable items in the vehicle whilst unattended. If this cannot be avoided, the items must be out of sight and the vehicle securely locked. The Company has no liability for any loss of your items left by you in the vehicle.
Theft of, or Damage to, Company Motor Vehicles
In the event of theft of a Company Vehicle you must notify the police and [the Company] immediately.
In the event of damage to a Company Vehicle you must notify [the Company] immediately.

Free Motor Vehicle Policy Template

Download this free Motor Vehicle Policy template for Australian businesses to ensure your employees are aligned around the use of motor vehicles and your business is protected.