NHVR Releases Guides to for a Registered Industry Code of Practice (RICP) & What this means for the LSS COR System
In our last Truck COR Update, we outlined a number of truck Chain of Responsibility (COR) reforms due to be implemented by the end of 2018.
One of the reforms we outlined was that the National Heavy Vehicle Regulator (NHVR), which manages COR regulations nationally, would be issuing guidelines to enable an industry sector to register Code of Practice detailing how COR should be managed within that industry sector.
The NHVR has now issued the RICP Guidelines.
The National Heavy Vehicle Legislation, which contains the concept of COR, has deliberately been written as “performance legislation”, which means that, like OHS laws, it does not include a prescriptive approach to what needs to be done to manage truck COR. Instead, it provides a framework and leaves it to enforcement agencies and Courts to determine, on a case-by-case basis, whether “all reasonable steps” have been taken to manage COR. If a view is formed that a party or parties failed to take all reasonable steps, then they could be subject to massive fines and penalties (Note – Fines and penalties are due to increase to up to $3million and/or up to 5 years jail when regulators align COR and OHS laws. This will be the subject of our next Update).
RICP’s will play an important role in clarifying how COR should be managed throughout supply chains within industry sectors.
What this Means for the LSS COR System
LSS clients and over 2,000 of their internal business units and outsourced providers are registered to complete the LSS COR Management System, which requires each to
- Implement the LSS COR Standard
- Confirm through an on-line self-audit or external audit their level of compliance with this Standard
The LSS COR Standard is in effect an un-registered Code of Conduct. It clarifies “who must do what” to manage COR within a supply chain. Parties involved in the System are required to
- Document and implement internal processes to manage responsibilities outlined in the LSS COR Standard
- Ensure personnel are trained on COR awareness and processes
- Regularly check on compliance with these responsibilities and processes
LSS Compliance Services Division assists clients and their supply chains understand and implement these requirements, using a range of guides and tools, including
- Documentation and implementation of internal processes
- On-line and classroom training programs
- An Incident Management System
- An on-site compliance inspection App
- An on-line COR compliance self-audit
- An on-line register detailing either the self-audit or external audit status of over 1,500 supply chain entities w
- External COR compliance audits
We will now assess the requirements of the RICP guidelines and, with the assistance of our legal partner Holding Redlich lawyers, will determine how we approach the RICP guidelines. Whilst our approach will be considered, the outcome will be to ensure that our COR System meets the requirements of the RICP guidelines.
Please do not hesitate to contact us on (03) 5984 4895 or by email email@example.com for further information.