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Why Are Employee Licence Checks So Important?

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Vehicles are the driving force behind the success of many modern Australian businesses. We rely on them to quickly, easily and efficiently move people and materials within our business operation. A lot of business owners assume that their employees have a valid driver's licence. Yet this assumption can be a dangerous one that can place your organisation at financial and legal risk.

If your business requires your employees to operate vehicles, make sure you read the following piece on the importance of employee licence checks.

Is It Legal?

As a business owner, you must show a duty of care to your employees and ensure that they are legal and safe to drive for or on behalf of your business. As such it is perfectly legal to perform a driver licence check by contacting the relevant state authority (this can be done online).

Whose Licences Should You Be Checking?

Every single person that you employ and drives for or on behalf of your business - including nominated third parties that have access to a company vehicle - should go through the licence checking process. Some vehicles, such as heavy vehicles, would require a special licence.

This includes grey fleet drivers (employees driving their own vehicles or vehicles on novated leases), company car users and everyone that has access to a vehicle that is used on work associated business.

The Cost Of Not Carrying Out Employee Licence Checks

Just assuming that your employees have a valid licence can be a very costly mistake. Doing so is not an option for your business or your insurer as both are legally required to ensure that drivers are properly licenced. If not then they are driving illegally and represent a risk to your business and brand reputation.

In the event that an unlicenced employee is involved in an accident or incident while operating your company vehicle, your company could be held responsible and faces the prospects of court appearances, fines, investigations under health and safety legislation and, in a worst-case scenario, charges under corporate manslaughter legislation.

General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

All information above has been provided by the author.

Tryan Christos, Interlink Insurance Brokers, ABN 15 008 955 646, AFSL 238901