By Jared Dunbar
A couple of months ago, the Senior Traffic Commissioner issued guidance on Periods of Grace. This is an issue that crops up regularly in Public Inquiries and did so again for me last week, so I thought it useful to revisit that guidance in this article.
A Period of Grace enables an operator to continue operating for a short period, despite not meeting one of the mandatory requirements of holding an Operator’s Licence. Those requirements are usually either financial standing or having a Transport Manager.
A Traffic Commissioner is normally required to revoke a licence that does not meet the requirements, but the Period of Grace effectively stays that decision for a period of time to enable the operator to rectify the situation. If the operator fails to rectify the situation during that time, then the licence will be revoked.
Periods of Grace are only available to standard licence holders and are used when one of the mandatory requirements is no longer met, namely:
- Professional competence i.e. having a qualified Transport Manager
- Financial standing
- Stable and effective establishment
When there is a material change, such as a Transport Manager leaving or inadequate financial standing, the Operator must notify the Traffic Commissioner. If this change affects one of the three above-mentioned requirements, then a Period of Grace request should accompany the notification.
How long is a Period of Grace?
The maximum period that can be granted for a Period of Grace is 6 months, unless the transport manager has died, or is incapacitated, in which case it is 9 months.
The Traffic Commissioner will usually initially grant a 3-month period, which allows the operator to apply for an extension if required. However, the period granted may be shorter if the operator has not submitted supporting evidence or a fully justified explanation. Failure to apply for the extension may result in revocation if the operator has failed to demonstrate that the requirement is met before the Period of Grace expires.
Once the maximum period has been granted, a Traffic Commissioner cannot extend it any further. In cases where a Period of Grace expires, and the situation hasn’t been rectified, the Traffic Commissioner will revoke the operator’s licence.
Additionally, the Senior Traffic Commissioner has advised that because it is accepted a mandatory licence requirement is no longer met at the point of granting a Period of Grace, there is no right to request a Public Inquiry after that time limit has expired. It is therefore important that operators fully understand the risks when requesting a Period of Grace and actively manage dates to ensure they rectify things within time, otherwise, they risk the loss of their Operator’s Licence.
Contact Jared Dunbar for advice on this and other Transport Law matters.