What are Periods of Grace?
A Period of Grace enables an operator who does not meet one of the mandatory licence requirements to continue operating and allows them 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 effectively puts that decision on hold but will only be granted if a Traffic Commissioner thinks it is appropriate.
Why are Periods of Grace important?
Traffic Commissioners accept that when running a business things do not always go to plan. A transport manager might unexpectedly resign, businesses can experience temporary financial problems or the premises where core business are stored may no longer be accessible.
A Period of Grace enables an operator to continue the business whilst taking steps to address the shortcoming.
When are Periods of Grace used?
Periods of Grace are only available to standard licence holders - both goods and PSV operators - and are used when one of the mandatory requirements are no longer met, namely:
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Professional competence - met by an individual who holds a Transport Manager Certificate of Professional Competence (CPC)
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Financial standing - met by demonstrating access to the required level of finance which depends on the number of vehicles authorised
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Stable and effective establishment - met by having an established premises in Great Britain where cores business documents are kept and have access to one or more vehicles
It is a condition on the 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 and proactively seek a Period of Grace.
How do I obtain a Period of Grace?
A Period of Grace is not granted in all cases. A Traffic Commissioner must be satisfied that there is a real chance that the operator will rectify the shortcoming during the Period of Grace. This is to make sure that the operator does not gain an unfair commercial advantage over other compliant businesses.
When applying for a Period of Grace an operator is accepting that they do not currently meet a mandatory requirement but, rather than putting an end to the licence, they are asking for time to rectify the issue. An operator will need to demonstrate what is being done to rectify the issue within a reasonable timescale and explain how the shortcoming will be covered during the Period of Grace.
For example, where a transport manager has left the business, to obtain a Period of Grace the operator must provide a clear plan for recruiting a new transport manager before the Period of Grace concludes and will require assurances that an operator can manage the transport activities of the business in the absence of a transport manager. In other words that the continued operation of vehicles won't compromise road safety.
All applications and any requests to extend the period must be submitted in good time so that OTC staff 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.
An application for a Period of Grace should be submitted by email to:
