Transport legislation changes for 2025

Although 2025 is not expected to result in many specific legislative changes for hauliers, Labour’s election victory is predicted to significantly affect the industry’s business practices.

Peter Woodhouse, a partner at Stoneking LLP, says that this year, more than any in recent memory, operators will need to think more broadly. “This is because in its campaigning pre-election, the Labour party promised a radical overhaul of employment rights,” he says.

“In line with this, the early months of government saw developments that will affect virtually all operators in the UK. It is likely to take by surprise smaller operators who may not have internal HR departments to advise them.

“The first and most critical is likely to be changes in relation to the right to claim unfair dismissal.”

Currently, an employee normally needs two years’ service to claim unfair dismissal, but the government wants to remove this and offer the protection from day one.

Woodhouse says this would be balanced by the introduction of a nine-month statutory probationary period during which a ‘light touch’ procedure could be followed.

Should this go ahead, the key takeaway for operators is that they will no longer be able to hire and dismiss with reasonable safety within that first two years.

EMPLOYMENT STATUS

There has recently been an increased focus by traffic commissioners (TCs) on the employment status of lorry drivers and whether they are genuinely ‘self-employed’. Despite this, Scott Bell (above), partner and head of commercial road transport at JMW Solicitors, says the announcement in the Autumn Budget of a rise in employer national insurance contributions might tempt hauliers to consider using these so-called self-employed drivers – as well as drivers that consider themselves as limited companies – which could put their O-licence at risk: 

“Whenever a driver is stopped by the DVSA, or if the DVSA undertakes an investigation of an operator, it is asking how the drivers are engaged and if the use of self-employed/Ltd drivers is identified. A report is sent to the TC to consider action against the operator,” he says.

“The Budget also introduced further powers to ensure that drivers provided through an umbrella company to an agency are paying the correct tax.”

From 31 December 2024, vehicles engaged in international journeys are required to be fitted with Smart 2 digital tachograph units and drivers are now required to produce 56 days’ records at the roadside, up from the previous 28.

MORE RED TAPE

“If this comes into force in the UK, it will inevitably create an additional burden on occasional drivers who are required to manually enter details of their activities for the previous 56 days on the tachograph unit before embarking on an EU drivers’ hours regulated journey,” Bell says.

“Operators should ensure the correct generation of tachograph unit is fitted to those vehicles travelling to or through the EU and should retrain drivers on the manual entry requirements for the increased 56-day production period.” The TCs’ annual report highlighted several issues operators need to bear in mind this year.

Drivers’ hours breaches loomed large, but Stone King partner Andrew Banks says this seems mostly in relation to rogue operators who are either not using digicards, or are using other people’s instead: “It may be that the DVSA has become better at focusing on identifying and putting resource to target these rogue operators, but for the compliant honest operators there is no real pattern that should concern them in terms of an increase in focus on drivers’ hours rules.”

UNDER THE SPOTLIGHT

However, Banks adds: “Where there is concern is around the increased scrutiny there now is on transport managers in fulfilling their role.

“Undoubtedly, year-on-year the bar is raised. Insofar as driver hours’ records are concerned, the report comments on the shortcomings on the part of transport managers to fail to identify or act on issues apparent on scrutiny of drivers’ hours records and reports.

“Similarly, the focus on interpreting and highlighting engineering issues, particularly in relation to brakes, on preventive maintenance inspection records has also been identified as a shortcoming on the part of transport managers.” A similar issue exists around periods of grace. Charlotte Hunt (left), an associate within Birketts’ regulatory team, says the TCs were increasingly seeing operators who had failed to understand the consequences of not taking appropriate actions during the period granted.

“Periods of grace can be a helpful tool when utilised correctly, but fatal to an operator’s business if not,” she points out.

Late last year, the latest version of the guide to maintaining roadworthiness was released. It retained the expectation that all vehicles and trailers should have a laden roller brake test at each safety inspection, but possibly amid current concerns about the availability of appropriate brake testing facilities to meet this requirement, a risk assessment may be undertaken instead explaining why this was not possible.

RISK ASSESSMENTS

“The DVSA has stated that if this is not possible, the responsible person or inspector should undertake a written risk assessment of why it is acceptable to depart from the laden roller brake test starting point,” explains JMW partner Laura Hadzik (right).

“There are some concessions included, which give operators more flexibility, such as permitting a roller brake test to be completed up to 14 days prior to the safety inspection, up from seven days.

“There is also significant new guidance as to the use of electronic braking performance monitoring systems and we suspect more operators will look to EBPMS as a solution for brake testing.”

Hadzik adds that a consultation is likely to start early this year about allowing local authorities and parking associations to use ANPR data to take action against drivers breaking the law: “It will lead to hauliers who flout parking charges, do not pay excise duty, or fail to ensure a vehicle has a valid MoT, being more likely to be caught and punished,” she says.

Another area applicable to all industries and sectors is the prevention of sexual harassment in the workplace. Since October 2024, employers have had a legal duty to take steps to prevent sexual harassment and the new rules extend to any perpetrator, including third parties such as customers, suppliers and members of the public. Bell says: “If a report is received by an operator detailing such conduct, it ought to be properly investigated and, if appropriate, those responsible subject to disciplinary measures.

“In the transport sector, we often hear comments made as ‘banter’ or with good intentions, but operators ought to remember it is not what the perpetrator intended that counts, but more how the recipient felt about those comments.”

He adds: “The logistics sector needs to encourage entrants to the industry of all genders and from all backgrounds – proactive steps to train, monitor and enforce policies preventing harassment ought to be encouraged. Hauliers should also engage with their suppliers and customers both proactively – to make them aware of their zero tolerance stance to sexual harassment – and reactively to investigate and appropriately deal with any reports of unwanted comment or sexual harassment.”

Returning to the TCs’ annual report, Hunt at Birketts flags up data that reveals just how serious it remains for an operator to find themselves appearing before a commissioner at a public inquiry: “Looking across the country at the published statistics for all traffic areas, with a percentage of approximately 94% of public inquiries resulting in regulatory action and 25% resulting in a formal warning, it remains true that if a call-up letter is received, the risk of regulatory action being taken is real,” she said

- This article was previously published in Commercial Motor, to subscribe see the latest Commercial Motor subscription offer