By RAM Tracking on 6 Jun 2025
Richard Howard, Sales Manager at RAM Tracking
Vehicle tracking technology can boost efficiency, improve safety, and reduce costs for UK businesses. However, implementing vehicle tracking without understanding UK laws can lead to serious consequences, from GDPR breaches and ICO fines to employee disputes.
This legal guide will help you stay compliant, protect your business, and maintain employee trust.
Under UK law, vehicle tracking is classed as employee monitoring. This means it’s subject to strict data protection and privacy regulations, especially under the UK General Data Protection Regulation (GDPR).
The Information Commissioner's Office (ICO) checks that businesses follow these rules and can fine you millions of pounds if you don't.
Getting vehicle tracking wrong doesn't just cost money. You could face court cases from employees, damage your business reputation, and lose staff trust. Understanding the law from the start protects your business and your workers.
The law is different for company cars and cars owned by employees. With company cars, you have more freedom to add a vehicle GPS tracker because you own the vehicle. But you still must tell employees and follow data protection rules.
For cars owned by employees, you cannot add tracking devices without getting written permission from the car owner, even if they use their cars for work. Always check who owns the vehicle before adding tracking systems.
UK law says you must be completely honest about vehicle tracking. You must tell all employees before adding any tracking devices, with clear details about:
What information are you collecting
Why are you collecting it
How long will you keep it
Who can see it
You must tell employees in writing before any tracking starts. Many businesses include this information in work contracts or vehicle policies.
For company vehicles, you might not need written permission if vehicle tracking helps your business in ways like planning routes or preventing theft.
But for employee-owned vehicles, you must get written permission, and employees must agree freely without pressure.
Getting permission even when the law doesn't require it often helps relationships with employees and shows you care about their privacy.
You can legally collect certain types of data for real business reasons:
Location data during working hours - For route planning, fuel management, and ensuring driver safety
Work-related journey information - Tracking business trips and deliveries
Vehicle performance data – Checking fuel use and when vehicles need servicing
However, there are strict rules on what you cannot collect:
Personal activities or movements outside work hours without a good business reason
Private communications such as phone calls or text messages
Detailed driving behaviour that could identify individual personal habits
Location data during breaks unless there's a clear business need
Always stick to data that directly relates to work and serves a legitimate business purpose.
GDPR sets strict rules for processing personal data, including fleet tracking information. Location data is considered personal data because it can reveal information about individuals' private lives.
You must have a legal reason for processing this data, such as legitimate business interests or contract requirements. You also need to conduct a Data Protection Impact Assessment (DPIA) if your tracking could pose high risks to employees' privacy rights.
Only collect information you actually need for specific business reasons. Keep data secure and delete it when you no longer need it.
You can usually track vehicles during work hours and for work trips, but tracking during personal time needs a good reason. Many businesses fix this by using tracking systems that can be turned off outside work hours or by clearly saying when tracking is on.
If employees take company vehicles home, you need clear policies about tracking during commutes and personal use. Generally, tracking the commute is OK, but tracking weekend personal trips isn't.
Remember that vehicle tracking data can also help work out business versus private use for HMRC tax purposes, as personal use of company vehicles creates a taxable benefit-in-kind liability.
UK law strictly controls who can see vehicle tracking data. You can share information with managers who need it for real business reasons, but sharing with insurance companies, clients, suppliers, or police needs proper permission or a legal reason.
Always keep records of who has seen tracking data and why to show you're following the rules if asked by officials or employees.
Many businesses fall into predictable legal traps that can result in serious consequences:
Installing tracking devices without telling employees - This is one of the most serious mistakes, often leading to ICO investigations and court cases
Collecting excessive data - Just because your tracking system can monitor driving style, phone usage, and detailed routes, doesn't mean you should collect all this information
Tracking personal time without justification - Monitoring employees during lunch breaks, weekends, or after work hours without clear business reasons
Poor data security - Failing to properly secure tracking data or allowing unauthorised access by staff members
No clear policies - Implementing tracking systems without written policies that explain data use and employee rights
Ignoring employee requests - Failing to respond to requests for data access or complaints about tracking
Not updating employees about changes - Making changes to tracking systems or data use without informing affected employees
Regular communication about tracking policies helps keep you legal and maintains trust with your workforce.
A clear vehicle tracking policy protects your business and helps employees understand their rights.
Beyond the basic notification requirements, your policy should set up clear procedures for data access requests and complaint handling. It should also include regular review schedules to ensure ongoing compliance with changing regulations.
The consequences of non-compliance can be severe. Fines for data protection violations can reach £17.5 million or 4% of annual turnover, whichever is higher. Even smaller businesses face big penalties for serious breaches.
Beyond financial penalties, you may face court cases from employees who feel their privacy has been violated. These cases can result in compensation payments and significant legal costs.
Damage to your reputation often costs more than direct fines. News of privacy violations can harm customer relationships, recruitment efforts, and business partnerships for years.
To ensure full compliance with UK vehicle tracking laws, follow these essential steps:
Identify which vehicles you plan to track and confirm ownership
Conduct a Data Protection Impact Assessment to identify privacy risks
Decide on your legal reason for using tracking data
Write clear policies explaining your tracking systems and data use
Tell all affected employees in writing before installing any devices
Get written permission for tracking employee-owned vehicles
Use proper security measures to protect tracking data
Set up procedures for handling employee requests and complaints
Train managers and staff who will see tracking data
Set up data keeping schedules and deletion procedures
Plan regular reviews to make sure you stay legal
Document all decisions and reasons for tracking systems
Vehicle tracking can transform your operations, but only if implemented lawfully and transparently.
By following best practices and maintaining clear documentation, you can stay on the right side of the law, protect employee privacy, and get the full value from your investment.
Need help choosing a legally compliant vehicle tracking solution? Get a quote from RAM Tracking today and let our experts help you build a smarter, safer, and more transparent fleet.
Richard Howard is a seasoned sales professional with over 9 years of experience at RAM Tracking.
Having worked closely with businesses across a wide range of industries, Richard brings in-depth knowledge of the challenges they face, particularly when it comes to fleet management and asset protection.
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