Legal update - February 202310 February 2023

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Curtainsiders targeted

REGULATORY

The Driver and Vehicle Standards Agency (DVSA) has carried out a week of enforcement action to protect road users in Staffordshire from dangerous vehicles.

The operation targeting curtainsided vehicles saw 37 vehicles checked, with three being taken off the road immediately for issues with load security. Between them, DVSA examiners issued 20 immediate and seven delayed prohibitions.

DVSA points out that the curtains on a curtainsided vehicle are not designed to secure the load, so it is important that loads are securely restrained to prevent movement. In most cases, the load must be secured using a suitable system such as lashing straps. Failure to properly secure goods can, in serious cases, cause load shifts that can lead to a loss of life.

Three of the vehicles encountered were taken off the road because the load was not properly secured or even restrained at all. One of the most serious issues encountered by examiners was a rigid curtainsided lorry fully loaded with building supplies. The driver thought the curtains were load securing and didn’t use any other restraining methods.

According to DVSA, there was a risk that this load could have shifted and affected the stability of the vehicle. It could have caused the vehicle to topple over on the highway or even cause a collision.

REGULATORY

IR35 and the driver shortage – what do we think will happen?

Reports identify that the haulage industry is still 50,000 drivers short. The shipping industry faces similar problems which is resulting in bottlenecks in the supply chain. With the Truss proposed reforms of IR35 abandoned by chancellor Jeremy Hunt, it is likely that HMRC will continue to clamp down on personal service companies in 2023 as it looks to fill the black hole in the UK tax economy.Wrestling with the status of the arrangements has been further complicated by the court of appeal handing down two major decisions in 2022 (see HMRC v Atholl House Productions Limited and Kickabout Productions v HMRC), which deviated from historical cases which had applied equally to tax and employment status. Now, the assumption is that for tax purposes, the starting point is what is written in the contract. Both entities are deemed businesses for tax purposes with equal bargaining power. This is not the case in an employer/employee relationship. Mutuality of obligation remains essential for a contract of employment to be established.

The key takeaway is 2023 is likely to yield further litigation in this area. Operators who use personal service companies should review the arrangements and ensure they accurately reflect how both parties intend the relationship to work.

REGULATORY

Sanctions policy update

DVSA has updated the enforcement sanctions policy, which guides the actions that DVSA traffic examiners take to deal with offences, including warnings, prohibition notices, and fixed penalties. Updates include offence notes added to section 14 (carriage of dangerous goods).

FACT FILE

Emergency doors

When the emergency doors on buses and coaches (PSVs) are not functioning correctly, there is a risk that passengers may not be able to open the door in an emergency, or inadvertently open the door while the vehicle is moving.

Both situations present clear risks to passengers – not being able to exit the vehicle in the event of an accident and falling out of the vehicle into oncoming traffic.

In partnership with the Confederation for Passenger Transport (CPT), DVSA asked vehicle operators to ensure their drivers are performing checks on emergency doors – so you and they know the doors are working as they should be.

Other doors and exits, including service doors used by passengers in normal circumstances, should also be subject to driver checks to make sure they are working correctly.

Some vehicle operators choose to install additional systems which further prevent unintentional operation of the emergency door, such as motion-sensed locking systems which activate at a predetermined speed.

Section 16 of the PSV inspection manual covers emergency exits and service doors (www.is.gd/dicaji).

Some items associated with emergency doors are classed as ‘major’ deficiencies at annual test.

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Backhouse Jones

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