Around two thirds of small to medium businesses are walking a legal tight-rope when it comes to employee motoring, new research has claimed.

According to the study, undertaken by car hire specialists Enterprise Rent-A-Car, around two-thirds (66 per cent) of SMEs do not check that employee-owned cars used for business trips are properly maintained and insured, despite their legal responsibility for the state of those vehicles.

This means if there is an accident in which the car is at fault, companies could face massive fines, appalling publicity and potentially even prosecution for corporate manslaughter.

The research was carried out in conjunction with the Federation of Small Businesses (FSB). Hundreds of employers across the UK were questioned to find out attitudes and policies when it comes to work-related motoring.

The findings showed that 67 per cent of small and medium-sized companies said personal cars were used by employees on business trips ‘often’ or ‘very often’ and six out of ten are happy for staff to use their own cars for work.

However, the survey also revealed serious gaps in how SMEs manage and keep track of those business trips. For example, 42 per cent don’t even check that employees who drive for work have a valid driving licence.

Meanwhile, among those companies whose staff ‘often’ make business trips by car, one in three admitted they never ask employees to carry out safety checks on their vehicle before a journey. This rose to 38 per cent among businesses with fewer than 26 employees.

Stephen Alambritis, head of parliamentary affairs at the FSB, said: “This research has highlighted some extremely worrying trends among SMEs. It seems many aren’t doing enough to ensure the safety and wellbeing of their drivers.

“Companies need to ensure all the vehicles used by staff, from minis to minibuses, are well-maintained, safe and fit for their intended purpose.”

The FSB is urging small business to take a long, hard look at their transport policies and to create one if necessary.

Brice Adamson, UK & Ireland managing director at Enterprise Rent-A-Car, added: “A lot of SME employers are setting themselves up for major legal problems.

“Companies have a legal responsibility to keep their employees safe, which is that much harder when they’re driving personal cars over which their employer has little or no control.”

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