Government Legislation

The UniTrak solution provides critical information to enable our customers comply with government and EU legislation.

1.  Private Mileage legislation
2.  New Drivers hours legislation
3.  Mobile phone legislation

Private Mileage Legislation – Implications

Companies are facing changes to the taxation laws relating to private use of company vehicles with significant implications on both Employees and Employers

The Benefit In Kind (BIK) value for employees who use the company vehicle for private use increased from April 2007 from just £500 per year to £3000 per annum (or £3,500 per annum where fuel is provided).
The impact of this taxation change will have a significant effect on both employees and employers.

What are the implications for employees and employers?

1.EMPLOYEES: Employees are required to pay their marginal tax rate on the increased BIK figure.

2. EMPLOYERS: E mployers are required to pay 12.8% National Insurance on this BIK value . 

For example:
12.8% of £3000.00 = £384 per annum (equivalent to £32 per month).
12.8% of £3500.00 = £448 per annum (equivalent to £37.33 per month)

Multiply this over your entire workforce and ask yourself how this will affect your bottom line.

10 vehicles X £32.00 per month = £320.00 per month.
£3,840.00 per annum off the bottom line.

10 vehicles X £37.33 per month = £373.30 per month.
£4476.60 per annum off the bottom line.

Act now!
Companies are being urged to prepare for these changes and encouraged to start planning now! 
 
With other factors to consider,
1. employees potentially asking for increased salaries to compensate this new tax,
2. increased storage space required for vans to be kept over night,
3. increased theft risk and leading to increased insurance premiums.

Can your business afford to ignore the changes?

Businesses must be able to provide the Inland Revenue evidence on demand that the tax does not have to be paid. Therefore an audit trail is required for:

1. accurate mileage, and
2. vehicle usage reports. 
How can UniTrak help?
UniTrak provide a single report designed to help its customers comply with this new government legislation.
This report provides;

• An accurate audit trail of mileage traveled on each and every journey.
• Journey start time with location, and Journey stop time with location.
• Detailed summary provided.

New Drivers Hours – Implications

New Drivers' Hours - from 11 th April 2007 . Speed limit reduction for 7.5T vehicles – Implications – UniTrak Solution
Daily Driving: 9 hours may be extended to 10 hours twice in a week.
Weekly Driving: Maximum of 56 hours in a week.
Fortnightly Driving: 90 hours during any two consecutive weeks.

Breaks: 45 minutes after 4.5 hours of continuous or aggregate driving. Alternatively, this break can be split into two periods; the first at least 15 minutes the second at least 30 minutes.

Daily Rest: In each 24 hours a daily rest must be taken.
Regular: At least 11 hours.
Reduced: Less than 11 hours but at least 9 hours. No more than three reduced daily rests between any two weekly rest periods.
Split Rest: A regular rest period can be taken in two separate periods; the first period at least 3 hours the second at least 9 hours.
Multi Manning: At least 9 hours within 30 hours of the end of a daily or weekly rest period.
Ferry/Train Crossings: At least 11 hours which can be interrupted not more than twice, not exceeding 1 hour in total.

Weekly Rest: After a maximum of 6 X 24 hour periods a weekly rest must be taken.
Regular: At least 45 hours.
Reduced: At least 24-hours.
In any two consecutive weeks either; two regular rest periods or one regular and one reduced.
A weekly rest period that falls in two weeks may be counted in either week but not in both.
Compensation: A reduced weekly rest period must be compensated en bloc by the end of the third week following the reduction and attached to another rest period of at least 9 hours.
Week = 00.00 Monday – 24.00 Sunday.

The UniTrak Solution

The purpose of this new legislation regarding “Drivers Hours” is to provide the drivers with improved Health & Safety conditions

Negative Implications for the Employee

Restrictions on working/driving hours, while having improved Health & Safety benefits will lead, in certain cases, to a reduction in drivers' pay packets.
In order to take-home the same pay packet, drivers will need to negotiate better pay from their employers. This may lead to problematic relations between employer and employee.

Negative Implications for the Employer

Reduction in productivity due to a reduction in working hours of the employees.
Will require additional staff to achieve the same productivity.
Will require additional vehicles with associated costs attached to achieve the same productivity.
Negative implication on the “bottom-line”. Increase the wages to staff. Staff will still want to take the same pay packet as they will see it as not their problem that hours have been capped. The UniTrak solution provides a detailed and accurate audit trail of:

• Driving hours – daily, weekly over any period upto 12-months
• Standing time and location
• Idling time and location
• Mileage.

Additional Legislation
Previously 7.5T vehicles were exempt from the 56mph max speed limit effecting heavier vehicles. This speed limit now applies to 7.5T vehicles.
Negative Implications for the Employer :
This will lead to a reduction in productivity. Example:
A company achieving 50 deliveries per week may only now achieve 45 as it is now taking longer to make the deliveries, and due to the new drivers legislation detailed above, they are not able to work longer hours to achieve these additional deliveries.
Therefore with a fleet of 9 vehicles the company is loosing out on 45 deliveries per week. In order to satisfy these deliveries, the company will need to take on 1 additional vehicle with 1 additional driver and all the other costs associated with this. This is purely to achieve what they were doing previously.
How can UniTrak help?
The UniTrak solution is designed to help you increase efficiency through route optimisation. This will help give you competitive advantage as you are able to comply with the latest legislation and still achieve the margins required to run a successful business. This can be seen as an opportunity as competitors may fail to implement systems to comply with the legislation and hence their margins narrow, profits fall and their business may fail.
“Vehicle Replay” allows you to quickly and easily refer back to any journey and replay it on the latest digital maps to ensure the most efficient routes were taken. This information is also recorded giving an audit trail in report format.
By ensuring the drivers are not taking excessive breaks, or deliveries to “preferred” customers are not taking too long, and that vehicles are returning to base earlier, productivity can be increased.

Mobile Phone Legislation – Implications

Companies employing a mobile workforce are feeling the impact of recent mobile phone legislation governing the use of mobiles when driving.
New legislation to increase the penalty for using a hand-held phone whilst driving will come into force on 27 February 2007.

Why?

• Research has shown that when using a mobile phone whilst driving, you are four times more likely to have a crash.
• If you use any type of mobile, be it hands free or hands held, your reaction times are worse than if you were driving under the influence of alcohol. Tests have shown that reaction times for drivers using a hand-held phone slows reactions by 50% when compared to normal driving and by 30% when compared to being drunk ( Direct Line Mobile Phone Report 2002 ).
• The use of a mobile phone often involves distractions which could be visual, auditory, mental or physical ( Direct Line Mobile Phone Report 2002 ).
• Even if you're a careful driver, it's easy to be distracted by a phone call or text message - and that split second lapse in concentration could result in a crash.

• Direct Line Mobile Phone Report 2002 summary .

Implications for Employees and Employers

This legislation will have a major impact on both the employee and the employer.

What are the negative implications for Employees?
The current fine of £30 will increase to £60 and three penalty points on your licence. Penalty points can mean higher insurance costs. If you get six points within two years of passing your test, your licence will be revoked and you will need to re-sit the test. If the case goes to court, you could risk a maximum fine of £1,000, which rises to £2,500 for the driver of a bus, coach, or heavy goods vehicle.

A driver can also be prosecuted for using a hands-free device if you are not in proper control of your vehicle when using the device. The penalties are the same - £60 fine and three points on your licence.

With 12-points the employees licence will be revoked. If employment is dependent on driving this will most probably lead to job termination and with that a negative change in their livelihood.

What are the negative implications for the Employer?

If you are an employer you can be prosecuted if you require employees to make or receive mobile calls while driving. It is an offence to cause or permit the use of a hand-held mobile phone when driving. It is also an offence to cause or permit a driver not to have proper control of a vehicle.
Callers also play an important role in keeping the roads safe. If the person you are speaking to is driving, please terminate the call and arrange to speak to them later.

Driver implications:

Driver looses licence – loss of an employee – cost of recruitment – cost of employment time and process – reduction in productivity – cost of re-training.
Vehicle implications: If crash while using a mobile phone – cost of damage to vehicle – cost of buying/leasing a new vehicle – cost of administration time – reduction in productivity – increase in insurance cost.

In Practice …

In today's increasingly mobile world, companies are requiring increased communication with their mobile workforce.
The most common method currently used to contact drivers is via a mobile phone. This legislation reduces the ease of getting hold of the driver. This new legislation allows the use of “hands-free” kits, for the time being. With research showing that the use any type of mobile, be it hands free or hands held, your reaction times are worse than if you were driving under the influence of alcohol, this legislation may be extended .

The most common reasons for contacting the employee:

1. 70% to find their location and how they are progressing.
2. 20% to provide them with additional information.
3. 10% to redirect them.

How can UniTrak help?  

UniTrak are providing its customers with a solution to reducing, if not removing the need to contact the employees throughout the working day. The information is gathered more quickly, more accurately, with an audit trail and with the peace of mind of complying with the mobile phone legislation.

Through the UniTrak website you are provided with an accurate, secure minute-by-minute update as to your vehicles location. This is displayed on the latest digital mapping and provides a detailed status of the vehicle; vehicle I.D, speed, street/road location and the direction in which the vehicle is traveling.

Therefore you will not need to;

a) contact the driver to find out their location,
b) find out if they are the most convenient vehicle to redirect,
both which are time consuming, costly with negative Health & Safety connotations.

If you need to speak with the driver you can see when the vehicle is stationary and contact them at this stage as it is safe to do so.
UniTrak will be launching the U-Message device later this year which will enable companies to send and receive text, job sheets and signature capture to and from the unit. This will negate the need to contact the driver to provide them with additional information .

Other factors to consider

1. Time it takes to call and speak to the driver.
2. Accuracy of the information provided by the driver.
3. Cost of telephone calls.
4. Employees may use the latest legislation to prevent you from providing them with increased workload.
5. Reduction in productivity.
6. Reduction in reaction times to satisfy customer requirements.