Chain of Responsibility (CoR) laws are regulations that aim to ensure that companies take responsibility for the actions of their supply chain partners. These laws put legal obligations on organizations to ensure that their supply chain partners comply with laws and regulations related to safety, environmental standards, and ethical behaviour.
To comply with CoR laws, an organization should meet the following requirements:
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Have a clear understanding of the laws and regulations that apply to their supply chain partners and the products or services they provide.
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Establish policies and procedures for managing the risks associated with their supply chain partners, including regular monitoring and auditing of their compliance.
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Have procedures in place for identifying and addressing non-compliance, including the ability to terminate business relationships with non-compliant partners.
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Have a process for reporting non-compliance to the relevant authorities.
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Continuously review and update the organization’s policies and procedures to ensure compliance with CoR laws and regulations.
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Train employees and supply chain partners on the importance of compliance and the organization’s policies and procedures.
It is important to note that CoR laws vary between different countries and jurisdictions, so it is important to ensure compliance with the specific laws and regulations that apply to your organization.
Heavy Vehicle National Law
The Heavy Vehicle National Law (HVNL) is a law that applies to the operation of heavy vehicles in Australia. The law is designed to promote safety and efficiency in the heavy vehicle industry, and applies to all parties in the supply chain, including vehicle operators, schedulers, loaders, and consignors.
The HVNL covers several key areas, including:
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Mass, dimension, and load restraint requirements for heavy vehicles.
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Fatigue management for heavy vehicle drivers, including limits on work and driving hours, and mandatory rest breaks.
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Chain of Responsibility (CoR) obligations, which place legal responsibilities on parties in the supply chain to ensure that heavy vehicles are operated safely and comply with relevant laws and regulations.
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Compliance and enforcement, which includes penalties for breaches of the HVNL and the ability for regulators to take enforcement action against parties who do not comply with the law.
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Record keeping, which requires parties in the supply chain to keep records of compliance with the HVNL, including records of mass, dimension, and load restraint, and fatigue management.
It’s important to note that the HVNL is a national law, but the compliance and enforcement of the law may vary from state to state. It is important to familiarize yourself with the specific laws and regulations of the state or territory in which you operate.
Policies and Procedures
To comply with the Chain of Responsibility (CoR) laws and regulations, companies must have policies and procedures in place to manage safety and compliance risks within their supply chain. These policies and procedures should be designed to ensure that the company is meeting its legal obligations under the CoR laws and to protect the safety of the public and the company’s employees.
Some examples of policies and procedures that a company may implement to comply with CoR laws include:
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A safety management system that identifies and manages safety risks within the supply chain.
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Procedures for the selection, management, and monitoring of third-party logistics providers (3PLs) and other contractors to ensure that they comply with CoR laws.
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Training programs for employees on compliance and safety regulations, as well as the company’s CoR policies and procedures.
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Regular audits and inspections of suppliers and other parties in the supply chain to ensure compliance with CoR laws and the company’s policies and procedures.
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A system for reporting and addressing non-compliance, including procedures for investigating incidents and taking appropriate corrective action.
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Accurate record keeping of compliance and safety measures, including records of mass, dimension, and load restraint, and fatigue management.
It’s important to note that these policies and procedures should be tailored to the specific needs of the company and should be reviewed and updated regularly to ensure that they are current and effective in ensuring compliance with CoR laws.
CoR Non-Compliance
Identifying and addressing non-compliance with Chain of Responsibility (CoR) laws is an important part of compliance for companies. Non-compliance can lead to penalties and fines, as well as increased safety risks for employees, the public, and the company’s reputation.
To identify and address non-compliance, a company should have a system in place that includes the following steps:
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Regular audits and inspections: This may include regular safety audits and assessments of suppliers and other parties in the supply chain, as well as regular inspections of the company’s own operations to ensure compliance with CoR laws.
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Reporting mechanisms: Employees and other parties within the supply chain should have a clear understanding of how to report non-compliance and a system should be in place to receive and investigate reports.
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Investigation and analysis: Incidents of non-compliance should be thoroughly investigated and analyzed to determine the cause and the appropriate corrective action.
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Corrective action: Once the cause of non-compliance has been identified, the company should take appropriate corrective action to address the issue. This may include revising policies and procedures, providing additional training, or taking disciplinary action against employees who have been found to be non-compliant.
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Continuous monitoring: The company should continuously monitor its compliance with CoR laws and should review and update its policies and procedures as necessary to ensure ongoing compliance.
Enforcement
Enforcement of Chain of Responsibility (CoR) laws is the process of ensuring that parties in the supply chain comply with their legal obligations under the CoR laws. This can include taking action against parties that are found to be non-compliant, as well as providing education and guidance to help parties understand and comply with the laws.
Enforcement of CoR laws can be carried out by a variety of agencies, including government regulators, industry associations, and private companies. These agencies may have the authority to issue fines, revoke licenses, and take other enforcement actions against parties that are found to be non-compliant.
Some examples of enforcement actions that may be taken include:
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Fines: Regulators may impose fines on companies and individuals that are found to be non-compliant with CoR laws. These fines can be substantial and can increase for repeat offenders.
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Licensing and permit revocation: Regulators may revoke licenses and permits for companies and individuals that are found to be non-compliant with CoR laws. This can prevent them from operating in the industry and can have serious financial and reputational consequences.
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Prosecution: Regulators may prosecute companies and individuals that are found to be non-compliant with CoR laws. This can result in criminal convictions and penalties, such as imprisonment.
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Compliance Agreements: Regulators may enter into compliance agreements with companies and individuals that are found to be non-compliant with CoR laws. A compliance agreement is a legally binding agreement between a regulator and a person or company, which sets out the steps that must be taken to rectify non-compliance and prevent future breaches.
CoR Record Keeping
Record keeping is an important aspect of complying with Chain of Responsibility (CoR) laws. Accurate and complete records can help a company demonstrate compliance with CoR laws and can assist with identifying and addressing non-compliance.
Examples of records that may need to be kept include:
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Mass, dimension, and load restraint records: These records should include details of the weight and dimensions of the vehicle and its load, as well as information on how the load was restrained.
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Fatigue management records: These records should include information on the hours of work and rest of drivers, as well as details of any breaks taken.
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Vehicle maintenance records: These records should include details of any maintenance or repairs carried out on the vehicle and should be kept for a specified period of time.
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Training records: These records should include details of any training provided to employees on compliance and safety regulations.
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Incident and accident records: These records should include details of any incidents or accidents that occur within the supply chain, as well as the actions taken in response.
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Compliance and safety audit records: These records should include the results of any compliance and safety audits carried out within the supply chain and any corrective actions taken as a result.
Ensuring your CoR is Complying is essential that your business follows the law and ensures ongoing due diligence that all parties in the supply chain, including companies and individuals, meet their legal obligations under the CoR laws. This can include taking steps to prevent non-compliance, identifying and addressing non-compliance when it occurs, and ensuring ongoing compliance with the laws.
A gap analysis of your business is a great first step to realise risks within your supply chain. MAEZ is seen as a leader in this field and can help your business improve, by reducing the on-road risks. www.maez.com.au
