External Transport Manager contract and duties

When you appoint an External Transport Manager (ETM), the law expects that person to exercise genuine and continuous management of your transport activities. A clear written contract protects both parties: it sets out exactly what the Transport Manager is legally obliged to do, evidences the "genuine link" to the licence the Traffic Commissioner looks for, and gives you a documented standard to hold the appointment to. Below is a plain-English summary of those obligations, drawn from DVSA guidance and Transport Manager responsibilities.

Core Transport Manager responsibilities

A Transport Manager must continuously and effectively manage the operator's transport activities. Their core duties include ensuring there is a written nil-defect daily driver reporting system, that vehicle defects found by drivers or at periodic maintenance inspections are remedied promptly and recorded, and that vehicles are not overloaded and are kept at the authorised operating centre when not in use. They must keep records of remedial action, manage and audit compliance systems to ensure they are effective, review shortcomings such as prohibitions and annual test failures, and stay up to date with relevant changes in standards and legislation.

The TM must have a genuine link to the licence holder, be a resident of the European Community, hold a valid CPC and renew it as required, and be of good repute — which includes not having been convicted of a serious criminal offence or incurred a penalty for a serious infringement. They are responsible for notifying the relevant Traffic Commissioner of their resignation, and for ensuring relevant changes are notified in line with operator licensing requirements.

Drivers — administration, management and operations

On the driver side, the Transport Manager must ensure systems are in place so that drivers hold the correct licence for the vehicle, that non-GB drivers register their licence with the DVLA where required, that regular licence checks are carried out and evidence retained, and that vocational drivers hold a valid Driver CPC.

In day-to-day management, the TM ensures drivers record their duty, driving time and rest correctly; that digital vehicle unit data is downloaded at least every 90 days and driver card data at least every 28 days; that analogue records are produced within 42 days; and that records are kept for at least 24 months for Working Time Directive purposes. Operationally, the TM ensures drivers complete and return defect reporting sheets, take adequate breaks and rest, and that a daily walkaround check is carried out before first use.

Vehicles — administration and management

Every vehicle must undergo an initial safety inspection before first use when added to the licence (unless recently subject to a pre-delivery inspection). Safety inspections must be pre-planned on a time-based pattern reflecting vehicle usage, following the DVSA Guide to Maintaining Roadworthiness, with a maintenance planner displayed and set at least six months in advance. Operator Licence discs must be current and displayed, MOT and insurance certificates valid, and tachograph calibrations up to date.

Maintenance records must be retained for no less than 15 months and made available for inspection, including for vehicles removed from the licence. The TM must keep vehicles and trailers in a fit and roadworthy condition (taking unsafe vehicles out of service), ensure defects are recorded and repaired promptly with evidence of rectification retained, make vehicles available for inspection and statutory testing within the licence maintenance intervals, and liaise with maintenance contractors so servicing follows manufacturer recommendations.

Limits on an External Transport Manager

There are specific limits for an ETM: they must not act as Transport Manager for more than four operators, or be responsible for more than 50 vehicles, or such smaller number as the Traffic Commissioner considers appropriate. They must also renew their CPC Transport Manager qualification in line with the guidelines. A clear contract makes these limits and duties explicit, protecting your licence and the Transport Manager alike.

Get the contract template

We provide a ready-to-use External Transport Manager contract that captures these obligations in full, so both you and your TM know exactly where you stand. If you would like a copy, or you need a qualified ETM to take on these responsibilities, get in touch — and explore our External Transport Manager service or read about whether you need a Transport Manager.