AARTO

We have all heard of AARTO, the demerit system, and the consequences thereof. AARTO’s implementation was scheduled for 1 November 2010, but Pres Zuma retracted its implementation recently. Currently there is much speculation in the media as to the date of implementation.

However, irrespective of the date of implementation, business owners and employers are encouraged to take notice of some of the consequences of AARTO. Some of the consequences are as follows:

1. Failure to respond 32 days after infringement was served will result in additional costs for courtesy letters and enforcement orders.
2. Should the employer fail to keep record of the driver of a vehicle and cannot nominate the driver, the employer will pay the fine at three times the value applicable to ordinary license holders (not operators).
3. The employer could receive a hefty fine or be imprisoned for a year for failing to keep record of the details of drivers authorized to use the vehicles of the employer.
4. Should the employer / owner of a vehicle fail to adhere to the requirements of an enforcement order, it will lead to a warrant of execution which could see the movable property of the owner of the vehicle sold at an auction. Further to this the applicable vehicle will be immobilized and no further licenses or operator cards will be issued until such time that the fine has been paid, including all the legal fees.
5. Offences under section 49 of the National Road Traffic Act 93 of 1996 (applicable to operators as defined in the act) will result in demerit points recorded against the operator and if a specific number of demerit points have been exceeded, the operator may not operate any of his / her vehicles on our roads.
6. The drivers’ licenses of employees may be suspended or cancelled as a result of infringements.
7. Failing to verify the status of the demerit points recorded against the name of an employee / driver could result in a driver illegally driving a vehicle, which could have far reaching implications in terms of third party liability and the insurance of the vehicle.

As can be seen from the above, the employer is going to be penalised heftily as result of infringements committed by its employees (drivers). It is suggested that employers obtain legal advice regarding the effects of AARTO and to obtain advice regarding the minimization of the impact of AARTO in its operations.

It is a known fact that drivers may loose their driver’s licences after having earned a certain number of demerit points. Let us assume that an employee is employed as a driver, and he now looses his driver’s licence as a result of too frequent infringements. Now, the employee (driver) cannot be legally driving around. The question that is going to have to be answered in the near future is if the employer will be entitled to dismiss such employee (driver).

I do not think that employers will find it that easy to get rid of their drivers who have lost their driver’s licences as a result of AARTO. For one, it is evident that employers have certain responsibilities in terms of AARTO. I have a suspicion that a dismissal of an employee (driver) will have to evaluated in terms of the steps taken by the employer to prevent the employee (driver) of loosing his driver’s licence.