Should Employers Consider Introducing an Electric Vehicle Policy

In efforts to reduce emissions and protect the environment, electric vehicles are becoming increasingly popular, with predictions that by 2040, the majority of cars sold will be electric. In line with their environmental obligations, together with the cost saving advantages, many employers have started to incorporate electric vehicles into their businesses. With this in mind, it could be useful for employers to have a policy on electric cars. Below we look at a fictitious scenario (albeit one that could arise) and how an employer should deal with it.

 

“We have an employee who drives an electric vehicle and they have recently used mains electricity from the office to charge the vehicle via an extension lead connecting to the vehicle in the Company carpark outside. We feel the employee is taking advantage of the Company, as well as causing a trip hazard. We are unsure about how to regulate this going forward, how should we handle this?”

 

Your approach could depend on whether the vehicle is a company car or owned by the employee personally, and the policies you have around the use of company vehicles.

 

If the vehicle is a company car, as a starting point you should review the employee’s contract of employment and car policy (if applicable) to identify whether there are any contractual provisions or guidelines on usage and maintenance of the vehicle. You should specifically check whether there is any provision suggesting that the employee is permitted to charge the vehicle on business premises, and arrangements for doing so.

 

If the vehicle is personally owned, the position may be different. You should first ascertain why the employee is charging their car at the expense of the business. After investigating further, you may find that the employee has a reasonable explanation for doing so. If this was a “one-off occurrence”, the cost may be immaterial and you might decide not to take any formal action regarding the use of the electricity. If, however, this is to become a regular occurrence, the cost to the business could be significant, especially taking into account the rise in energy prices.

 

Depending on the content of your policies, you may wish to consider whether the employee asked for permission, say from their line manager, before charging their car. Following further investigation and depending on the circumstances, this could give rise to a disciplinary matter.

 

With respect to the extension lead used to connect the car to the mains electricity, this could constitute a health and safety risk and might cause the business to fall foul of its health and safety obligations under the Health and Safety at Work (Northern Ireland) Order 1978, and regulations. Employers are responsible for ensuring the health and safety of their employees, and those that are affected by their activities, and to provide a safe system of working, so far as reasonably practicable. The employee in question may have caused a trip hazard, which could cause harm to themselves,  their fellow employees or visitors and you should investigate further. This too could give rise to potential disciplinary action. Before taking any disciplinary action (if appropriate) you should carry out a full investigation, in line with your disciplinary policy. If you decide upon disciplinary action, you must carry out a fair and transparent procedure in line with your policy and statutory obligations.

 

You may be unaware of the safety standards required of the electric vehicle. An employee using the business’ mains electricity to charge an untested electric vehicle could create significant risk to the employee as well as to fellow colleagues. Given the rise in use of electric vehicles, you could consider the installation of charging points on site, whether the vehicles are owned by the business or the employee. Charging points could be installed either in the carpark, or at the employee’s residential address.

 

In developing a policy on electric vehicles for your business there are a few points to consider. Any policy should contain guidance on how to charge the vehicle and the use of charging points. There is potential for issues to arise, especially in the event of termination of employment, over ownership and/or liability in relation to the charging point, for example, if it is installed at the employee’s residential address and these should be addressed in the policy and contractual arrangements with the employee.

 

The main content of this article was provided by Patricia Rooney and Emma Doherty of Tughans LLP in Belfast. Patricia and Emma work exclusively in employment law, and should anyone have any queries about anything raised in this article or any other employment related issue, they can be contacted at:

 

Patricia Rooney

Emma Doherty

 

While great care has been taken in the preparation of the content of this article, it does not purport to be a comprehensive statement of the relevant law and full professional advice should be taken before any action is taken in reliance on any item covered.