A Simple Guide to the Operator’s Licence

An Operator’s Licence is an essential part of running a transport operation, but it can also be one of the least understood. In this guide, we will break down what an Operator’s Licence is, why it’s important and what you need to do to maintain it.

What is an Operator’s Licence?

An Operator’s Licence, or O-Licence, grants permission to the holder to own and operate HGVs on a commercial basis.

An O-Licence aims to make sure that the Operator is following the rules and maintaining high standards of safety, vehicle maintenance, driver conduct and environmental compliance.

Who needs an Operator’s Licence?
You will generally need a licence if you operate:

• A goods vehicle with a gross plated weight of more than 3.5 tonnes (3,500 kg).
• A goods vehicle with an unladen weight of more than 1,525 kg (if there is no plated weight).
• A vehicle combination (such as a car or van towing a trailer) where the total weight exceeds 3.5 tonnes.
• Any light goods vehicle or van (including vans with trailers) with a maximum laden weight over 2.5 tonnes used for international transport into or through the EU

The type of O-Licence that you need depends on where your vehicles are operating, whether you’re transporting goods for hire and reward, or if you’re transporting your own equipment.

Are there any exemptions to who needs an Operator’s Licence?

Yes, there are some exemptions. These include emergency services, military vehicles and funeral vehicles. Recovery vehicles are also exempt as long as they are only transporting vehicles that are completely disabled to a garage or scrap yard. There are also exceptions for snow plough, gritters and agricultural vehicles operating withing a local radius, and some other vehicle types.

If you’re not sure whether you need an Operator’s Licence, contact us here and we would be happy to advise,

The different types of Operator’s Licences

There are three types of O-Licence; Standard National, Standard International and Restricted.

A Standard National Licence allows you to carry goods for hire and reward in the UK.

A Standard International Licence is for operators who carry goods for hire and reward both in the UK and internationally. This includes transport into Europe and the Republic of Ireland. Holders of this O-Licence must be aware of the complexities of border crossing and the regulations in the countries that they are travelling into.

A Restricted Licence is for Operators who only carry their own goods within the UK and the EU, and are not offering transport services for hire and reward. For example, a scaffolder carrying their equipment from site to site will need a Restricted Licence. A Restricted Licence only limits what you can carry, you must still comply with all relevant regulations such as vehicle maintenance and working time restrictions. A Restricted Licence does not require a Transport Manager to be named on the licence which often means that the person responsible for the O-Licence is less familiar with the regulations and undertakings than a trained Transport Manager. This is where a service like CTS Companion can be essential to help maintain compliance.

What are the requirements to obtain an Operator’s Licence?

There are multiple requirements to obtain an Operator’s Licence, and these must all be fulfilled when applying otherwise the application can be rejected.

• Financial standing: Operators must demonstrate that they have the financial ability to maintain their vehicles and their operation to the required standards. Operators must have the following amounts in the bank in order to demonstrate this, depending on the type of licence that they are applying for:
  • Standard National: £8,000 for the first vehicle and £4,500 for each additional vehicle.
  • Standard International: £8,000 for the first HGV or £1,600 for the first light goods vehicle if they do not operate any HGVs, and £4,500 for each additional HGV, or £800 for each additional light goods vehicle.
  • Restricted Licence: £3,100 for the first vehicle and £1,700 for each additional vehicle.

Operators do not have to pay this as a fee, but must be able to show that they have these amounts in the bank on an ongoing basis.

• Compliance systems: Operators must be able to demonstrate that they have systems in place to make sure that all the rules are being followed. This would normally be in the form of written policies and procedures, as well as relevant records to show that these are being followed. They should cover things like drivers hours, licence checks, avoiding overloading and vehicle maintenance.
• Good repute or fitness: The Traffic Commissioner will assess the business, directors and employees, and consider any past convictions or conduct that may show that they are not of good repute or fitness. The maintenance of this good repute is essential for the Operator’s Licence to remain valid.
• Professional competence: For standard O-Licence holders, they must have a named Transport Manager on the licence, and this Transport Manager must be both suitably qualified and up to date with their CPD. There must be a contract with the Transport Manager and they must be paid for their role.
• Vehicle maintenance: Vehicles must be kept in a fit and serviceable condition at all times, and Operator Licence holders must be able to show that this is the case in the form of maintenance contracts with a garage.
• Operating centre requirements: The operating centre and its location must meet certain standards. The location should not be a safety risk or a nuisance to the environment or local community. Additionally, the licence applicant must put a notice in the local newspaper when applying for an Operator’s Licence to notify the community of the intention to run vehicles from the proposed site, and to allow them the opportunity to raise concerns.
• Stable establishment: The business must be well-established and stable with a fixed address to keep business documents, driving and maintenance records. The business must also be able to demonstrate that they always have access to at least one commercial vehicle.

It is not technically hard to get an Operator’s Licence as long as you meet the required criteria and submit a complete application. However, an Operator’s Licence is similar to a legal contract and the Office of the Traffic Commissioner will want to be sure that if the Licence is granted then the applicant will be able to follow and maintain all the relevant requirements.

The Department for Transport, Traffic Commissioner and DVSA

As an Operator Licence holder, it is important to understand the roles of the Department for Transport, the Traffic Commissioner and the DVSA, as well as how the three interact with each other.

• The Department for Transport, or DfT, is the ministerial government department responsible for UK-wide transport policy. They sit at the top of the hierarchy and set the rules that the industry must follow. The DfT also appoints the Traffic Commissioners, and funds the DVSA.
• The Traffic Commissioner issues Operator’s Licences and makes legal rulings in cases of non-compliance. If an Operator or Transport Manager breaks the rules then the Traffic Commissioner can call them to a Public Inquiry to investigate the issues and potentially deliver a formal warning, reduce the number of vehicles that an Operator can run, suspend or revoke an O-Licence, and disqualify directors or transport managers. The Traffic Commissioner can call professional drivers to Driver Conduct Hearings to investigate issues such as speeding, driving with a mobile phone or driving under the influence. The Traffic Commissioner can revoke their professional driving entitlement.

You can read more about the Traffic Commissioner on the official Traffic Commissioners for Great Britain page.

• The Driver and Vehicle Standards Agency, or DVSA, is responsible for enforcing road safety standards. They can stop vehicles to check for overloading, tachograph infringements, load security and mechanical defects. They can issue fines and prohibition notices which mean that the vehicle cannot be driven until the issues are fixed. The DVSA can also visit Operating Centres to audit paperwork and inspect vehicle maintenance records, tachograph analysis reports and defect reports. The DVSA reports to the Traffic Commissioner who can use the evidence provided to call a Public Inquiry or Driver Conduct Hearing if needed.

You can find out more about the DVSA on the official Driver and Vehicle Standards Agency homepage.

Operator Licence Undertakings

These are the rules that an Operator agrees to follow when they are granted an Operator’s Licence.

1. The laws relating to the driving and operation of vehicles used under this licence are observed;
2. The rules on drivers’ hours and tachographs are observed, proper records are kept and that these are made available on request;
3. Vehicles and trailers are not overloaded;
4. Vehicles operate within speed limits;
5. Vehicles and trailers, including hired vehicles and trailers, are kept in a fit and serviceable condition;
6. Drivers report promptly any defects or symptoms of defects that could prevent the safe operation of vehicles and/or trailers, and that any defects are recorded in writing;
7. Records are kept (for 15 months) of all driver reports which record defects, all safety inspections, routine maintenance and repairs to vehicles, and that these are made available on request;
8. In respect of each operating centre specified, that the number of vehicles and the number of trailers kept there will not exceed the maximum numbers authorised at each operating centre (which will be noted on the licence);
9. An unauthorised operating centre is not used in any traffic area;
10. Furthermore, I will notify the traffic commissioner of any convictions against myself, or the company, business partner(s), the company directors, nominated transport manager(s) named in this application, or employees or agents of the applicant for this licence and, if the licence is issued, convictions against the licence holder or employees or agents of the licence holder;
11. I will ensure that the traffic commissioner is notified within 28 days of any other changes, for example a change to the proposed maintenance arrangements; a change in the financial status of the licence holder (e.g. if placed in liquidation or receivership), or a change to Limited Company status or partnership, that might affect the licence, if issued.
12. Standard Licence holders only: I must be able to prove that I have a formal arrangement for access at all times to at least one vehicle registered or in circulation in GB. This could be by specifying a vehicle for use under an O-licence or by demonstrating on request that I (the licence holder) have a vehicle available – so vehicles may be either wholly owned or held under a hire-purchase, hire/leasing arrangement or other type of formal arrangement.
13. Standard Licence holders only: I have an establishment in Great Britain (GB) with premises in which I keep core business documents. These include (as a minimum) accounting and personnel management documents and data on driving time and rest. I understand that the use of a PO Box or third-party address is not permitted.

Can you driver an HGV without an O-Licence?

Drivers themselves do not need to hold an Operator’s Licence. The O-Licence is held by the driver’s employer. If you are operating a vehicle without an O-Licence when one is needed the vehicle can be impounded and you could face an unlimited fine, and up to 6 months in prison.

Navigating the requirements of an Operator’s Licence can be challenging which is why we introduced our CTS Companion service which removes the questions around compliance and offers you the support needed to make sure that you stay on the right side of the Traffic Commissioner.

Find out more about CTS Companion here.

If you have any questions about Operator’s Licences, please reach out to the CTS team here.