PERSONNEL MANAGEMENT - 06.09.2012

Please use public transport!

Take a hike! The Legal Services Commission (LSC) runs the Legal Aid scheme in England and Wales. Lawyers who undertake this publicly funded work are entitled to make a claim for their travelling costs. However, they were recently up in arms after the LSC directed them to “take buses and trains wherever possible” to reduce the burden on the public purse. As you can imagine, this hasn’t gone down too well!

Seriously. Nevertheless, it prompts an interesting question: could you introduce a similar rule? Let’s consider the following scenario. You have two managers booked onto an external training course. They each plan on driving the round trip of 200 miles in their own cars. Assuming you pay the HMRC-approved mileage rate of 45p, this will cost you £180 (plus, perhaps, two lots of parking).

Cheaper alternative. If they took the train instead, the costs would be: (1) personal mileage to and from their home stations (we’ll call that £20); (2) two pre-booked return train tickets at £36 each (£72); and (3) two shared taxi journeys at the other end (again, let’s say around £20). Although it’s a basic example, it demonstrates that you’ll save £68 (£180 - £112) by them taking public transport. Plus, as they’ll both be able to work on the train, you won’t have lost man hours to car travel.

Make it your policy. The bottom line is that it’s entirely up to you how staff travel on work-related journeys. Our advice is that you should introduce a rule which “forces” them to take the most cost-effective option (unless there are compelling reasons why they shouldn’t). This can be detailed in a business travel policy (see The next step).

Tip. If an employee’s role may take them away from their workplace, reserve the right in their contract to select the appropriate mode of transport - that way you’ll always have the final say.

For a free sample business travel policy (PS 14.16.01A) and for a free sample requirement to travel clause (PS 14.16.01B), visit http://personnel.indicator.co.uk.