Senior Traffic Commissioner Richard Turfitt has warned operators not to leave it too late when it comes to periods of grace and to ensure they know the rules should they find themselves in such a situation.
A Period of Grace can enable an operator which does not meet one of its mandatory licence requirements to continue operating and allows time to rectify the issue during the period granted; a Traffic Commissioner is normally required to revoke a licence that does not meet the requirements, but the period of grace can be used to effectively put that decision on hold in certain circumstances. However, will only be granted if a Traffic Commissioner thinks it is appropriate.
The Traffic Commissioners accept that when running a business things do not always go to plan, citing the example that a transport manager might unexpectedly resign, or that businesses can experience temporary financial problems, or premises which are vital to the running of the business may no longer be accessible. In such exceptional cases, a period of grace enables an operator to continue the business whilst taking steps to address the shortcoming.
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Periods of grace are only available to standard licence holders and are normally used when one of the mandatory requirements are no longer met, namely professional competence, financial standing, or stable and effective establishment. Operators are reminded that it is a condition on any operator’s licence to notify a Traffic Commissioner when there is a material change to the operator’s ability to hold the licence. If this change goes to one of the above-mentioned requirements, then any such notification should be accompanied by that operator pro-actively seeking a period of grace.
Operators must be aware that a period of grace is not granted in all cases, and a Traffic Commissioner must be satisfied that there is a real chance that the operator will rectify the shortcoming during the period. Operators must not use the grace period to gain an unfair commercial advantage over other compliant businesses.
When applying for a period of grace, an operator must accept that it does not currently meet a mandatory requirement but, rather than putting an end to the licence, is asking for time to rectify the issue. It must be able to demonstrate what is being done to rectify the issue within a reasonable time scale and explain how the shortcoming will be covered during the period, for example where a transport manager has left the business, to obtain a period of grace it must provide a clear plan for recruiting a new transport manager before the period expires, and the Traffic Commissioner will require assurances that it can manage the activities of the business satisfactorily in the meantime. The continued operation of vehicles must not compromise road safety. All applications and any requests to extend the period must be submitted in good time so that the Office of the Traffic Commissioner can complete appropriate checks and obtain approval from a Traffic Commissioner; a prospective CPC holder does not become the transport manager unless and until they have been authorised by a Traffic Commissioner.
Time limits
In almost all cases, the maximum period that can be granted is legally capped at six months, or a total period of nine months in the case of death or incapacity of the transport manager. However, a Traffic Commissioner is unlikely to grant the maximum period at the outset as there is then no contingency to extend the period of grace further. Depending on the individual circumstances of a case, the presiding Traffic Commissioner will grant the period they consider appropriate, which will normally allow opportunity for the operator to update a Traffic Commissioner and apply for a further extension within the maximum six or nine month window if required.
Generally a Traffic Commissioner may grant an initial three-month period which can then be extended up to the maximum six months if necessary, though it may be shorter if the operator has yet to submit all of the relevant paperwork. If required, it is the operator’s responsibility to apply for an extension before the initial period concludes. Failure to do so may result in revocation of the O-licence if the operator has failed to demonstrate that the requirement is met before the period of grace expires.
At the end of a period of grace, once the maximum period has been granted, a Traffic Commissioner cannot extend it any further under any circumstances. In cases where a period of grace expires, due to the date passing without either the requirement being met or an application to extend the period further, the Traffic Commissioner is then required to revoke the operator’s licence.
Evidence that the requirement is met, or an application to extend, submitted at the last minute, will not be enough to save the operator’s licence, the Traffic Commissioners warn, and operators must ensure there is enough time for the Traffic Commissioner to consider any application once submitted.
Additionally, because it is accepted at the outset of granting a period of grace that a mandatory licence requirement is no longer met, there is no right to request a public inquiry after that time limit has expired. The Traffic Commissioners have therefore reminded operators that it is therefore vital that they fully understand the risk to their licence when requesting a period of grace, and actively manage dates to make sure that they satisfy a Traffic Commissioner they are compliant before the time limit expires, otherwise they risk the loss of their O-licence.
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