At one time or another, many transport companies need to rely on the services provided by agency drivers, to best cope with sudden fluctuations in demand or to fill driver shortages. This allows for the undisrupted continuation of services by these organisations.
However, there are important laws and regulations that operators must abide by when relying on the services provided by agency drivers.
Agency Drivers and The Law
In the recent case of Enero Logistics Ltd the Senior Traffic Commissioner took action against an operator who was using so called agency HGV drivers. This is an important decision for any transport operation to be aware of as it reiterates the importance of operators complying with their legal obligations in relation to those who work for them.
The Agency Workers Directive 2010 aims to ensure the protection of temporary agency workers and ensures equal treatment of agency workers.
These regulations provide that after a qualifying period of 12 weeks, the basic working and employment conditions of temporary agency workers must at least be as beneficial as those that would apply if they had been recruited directly.
What Were Enero Logistics Ltd Doing?
Enero Logistics Ltd (Enero) was called to a Public Inquiry following a bridge strike. At the inquiry it was necessary to investigate how Enero employed and controlled its drivers. The press release issued by the Office of the Traffic Commissioner about the Enero case included the following warning:
"In his decision, the Traffic Commissioner noted that some operators still wrongly believe that anti-avoidance legislation does not apply and that HMRC cannot pursue workers, agents and the operator. Failure to comply with legal requirements can undermine the ability to hold an operator's licence. The publicly available guidance on the GOV.UK website advises that a person is an agency worker if they have a contract with an agency but work temporarily for a hirer. Even workers doing occasional work for a specific business (where the worker has to agree to terms & conditions to obtain the work, where the business provides the materials, tools or equipment) can be subject to the deduction of tax and National Insurance contributions from their wages. Legitimate agency arrangements are subject to specific legislation requiring the agency to supply the worker with information including the start date and how long the assignment is likely to be for. Agency arrangements will be scrutinised by Traffic Commissioners."
In this case the agency agreement was found to be a "sham".
What You Need to do as an Operator
If you currently have agency drivers within your organisation, it is crucial that you check what arrangements you currently have in place and ensure that your organisation is compliant.
Alternatively, if you do not currently have agency drivers working within your organisation, it makes sense to ensure that you are clear on what you are legally required to do, in case you ever do need to rely on the services of an agency driver in the future.
If you have any questions regarding agency drivers or more generally about your company as an operator, then please click here to send us an email, or call us directly on 01279 818280. We are here to help.
Latest Coach & Bus Industry News and Insight
Moving to a Digital First Approach in Heavy Vehicle Testing
In a Section 19 Public Inquiry hearing heard last year (2023) the Traffic Commissioner highlighted again the importance of permit operators ensuring that their vehicles allow passengers and other road users to be safe.
by Emma PellyTraffic Commissioner Highlights Abuse of Section-19 Permits
In a Section 19 Public Inquiry hearing heard last year (2023) the Traffic Commissioner highlighted again the importance of permit operators ensuring that their vehicles allow passengers and other road users to be safe.
by Emma PellyAre you Up To Date with the Guidance on Right to Work Checks?
In August 2023, it was announced that from 2024 the penalties imposed on employers who are found to be employing people who do not have a right to work in the UK would be tripled, in an effort to curb this “black-market” practice and raise the disincentives for people to come to the UK to live and work illegally.
by Emma PellyDriver CPC Reform: Department For Transport Publishes Consultation Findings
In early 2022 the Department of Transport (DfT) launched a consultation into the Driver Certificate of Professional Competence (DCPC) regime, following a review undertaken in late 2021 on the driver shortage issues.
by Emma PellyGovernment Publishes Review into Traffic Commissioner Function
During 2021 and 2022 the government ran a review into the Traffic Commissioner Function in the UK. The report into this review was published at the end of May 2023.
by Emma PellyPSVAR Review – Call for Evidence
Under-Secretary of State for Transport, Richard Holden has urged members of the coach and bus industry to respond to the government’s call for evidence (CfE) in a key review on the Public Services Vehicles Accessibility Regulations (PSVAR) which were introduced in 2000.
by Emma PellySeat Belt Buckle Guards – How Safe Are They?
On 9th February 2023 the DVSA issued a “Daily Digest Bulletin” on the subject of seat belt buckle guards. A buckle guard is a component that is added to the standard seat belt equipment of a vehicle, in order to prevent the seat belt being released whilst the vehicle is in motion.
by Emma PellyFrequently Asked Question: I run a PSV under a Section 19 Permit – does it need to be PSVAR Compliant and do my Drivers need Driver CPC?
There is a specific exemption within the Public Service Vehicles Accessibility Regulations (PSVAR) which applies to vehicles used in accordance with Section 19 of the Transport Act 1985; in other words, those operated under a Section 19 permit: so PSVAR does not apply in these cases.
by Emma PellyDVSA Issue Revised Guidance on the Categorisation of Defects on Vehicles
This revision gives a total of 29 revisions to the various checks that DVSA officers would be expected to carry out during any roadside checks they undertake.
by Emma PellyDVLA – Accelerating Medical Fitness Applications
It is to be hoped that professional drivers will no longer have to endure weeks of waiting for their driving licences to be processed, as the Government has implemented changes to the Road Traffic Act 1988 (RTA) to allow a wider range of health care professionals to approve medical examinations.
by Emma PellyOffice of Traffic Commissioners Announces End to GV81 Paper Applications for Major Applications
The increasing digitisation of the working world has reached the Office of the Traffic Commissioner’s applications process, with the induction of digital applications about to be a requirement for all Major applications from 1st August 2022 onwards.
by Emma PellyChanges to Sentencing Rules for Dangerous Driving Offences – Life Sentences from 28th June 2022
Road traffic accidents can be difficult, traumatic experiences for all involved, especially if there is an accusation that the driver causing the accident was “under the influence” when the accident happened.
by Emma Pelly