As the war between America, Israel and Iran enters its second month, countries around the world are feeling the impact, with reports of potential fuel shortages or rationing as a result of the ongoing conflict. Fuel shortages or rationing could have knock on implications for both employers and employees. Kate Palmer, Chief Operations Officer at Peninsula takes a look…
With prices rising at the pumps and some petrol stations reporting a shortage of fuel, particularly diesel, employers may start getting questions from employees who are facing struggles with their commute, either through a lack of fuel for their car or through limited public transport options.
Although the government has currently issued no guidance, saying we should carry on as normal, it’s prudent for businesses to start putting plans in place in case the situation escalates. We’ve seen an increase in the number of calls from employers wanting to ensure that their company policies are clear and compliant and they are ready to answer any questions from employees.
Increased fuel prices and potential shortages raise issues around both business costs and HR policy. From a cost perspective, any business with a fleet of vehicles now faces significantly increased overheads.
Organisations should start looking at what other jobs their drivers could do temporarily, to ensure they still receive full pay in case fuel shortages have an impact on their ability to work. For example, are there administrative duties they could pick up, such as answering calls, reviewing paperwork, etc. Employers may also be able to place affected staff on lay-off. This is where there is no work for them to do, but they remain employed and are expected to be available for work when needed.
If there are no contractual entitlements to pay whilst on lay-off, employees with at least one month’s service will be entitled to Statutory Guarantee Pay (SGP). From 6 April, this will be paid at £41 per day for a maximum of 5 working days within a three-month period.
Not everyone who drives for work uses a company vehicle. If employees are driving for work using a personal vehicle, and submitting expenses for mileage used, it’s crucial that there are clear systems in place around this and the exact rates that will be paid. Employers should also be mindful of any tax implications that mileage rates may have.
Best practice for employers is to ensure that their company policies contain clear guidance on what constitutes a work trip, how to calculate the distance for the purpose of mileage calculations, and the specific mileage rates in place for their business.
Employees are also feeling the pinch, so it’s likely that bosses will start getting questions from employees who say they cannot afford the cost of fuel to get to work or take their children to school. Discuss alternative options, such as carsharing, using public transportation or adjusting working hours to accommodate train / bus timetables. Keep in mind that there may be no public transport options, especially if the employee lives in a rural location, or timetables may be altered as a result of cost pressures on bus and train companies.
If there are no other options available then employers could look at whether employees’ roles could be temporarily amended. This might allow them to work from home, or from a different site which they are able to access.
Other options include employees booking last minute annual leave or using accrued time off in lieu to ensure that they still get paid during this time. There may be an option for emergency time off for dependants, where employees are unable to take their children to school, but this is not a long-term solution.
