Feb-March 2003

Companies implementing telematics systems could unwittingly be in contravention of the Data Protection Act, the Human Rights Act and current employment legislation, writes Robin Meczes.

That's the warning issued by David Faithful, a partner with Birmingham-based legal practice Amery-Parkes, who says storing the kind of data collection and distribution involved in vehicle tracking and tracing systems could mean telematics service providers, employers and vehicle manufacturers supplying systems all finding themselves on the wrong side of the Data Protection Act, as well as the privacy issues outlined in Article 8 of the Human Rights Act.

He also warns that truck fleet operators could find themselves in trouble with industrial tribunals if they take disciplinary action against employees based on information gathered by telematics systems - particularly information about speeding. "By and large, employment tribunals are taking a dim view of the use of telematics data in this way as it does sit uneasily with Article 8," he says.

Faithful, who says the admissibility in court of information generated by telematics systems is a grey area, adds that such information cannot necessarily be used to justify disciplining employees. In addition, he warns there could be legal implications if employers or service providers pass information on the way vehicles are driven to third parties like the police or insurance companies - for example, after a road accident, or in order to help assess an insurance risk.

So concerned is Faithful that he is calling on the industry to discuss the creation of a voluntary code of practice on the data telematics systems collect and the way in which they do so. If the industry is willing, he says a draft code could be in place this year.

Meantime, his advice to vehicle fleet operators to be careful about the way in which they use the data from telematics systems and, in particular, to get their employees' consent in writing to having the data gathered. "And make sure when you recruit drivers that their employment contracts specifically include something dealing with this issue in terms of disciplinary procedures."