Newsflash: AARTO and your business: What employers need to know

The new AARTO (Administrative Adjudication of Road Traffic Offences) Act, whose national rollout in South Africa becomes effective on December 1, 2025, will significantly affect employers, particularly those with employees who drive as part of their duties.

The primary purpose of AARTO is to reduce road accidents by enforcing stricter compliance with traffic laws through a national demerit point and fine system. Under AARTO, drivers accumulate demerit points for traffic infringements, which can lead to suspension or cancellation of their driving licenses if too many points are accrued.

For employers, the system means:

• Employers may be held administratively and financially liable for their employees’ traffic offences committed during the course of their duties. This includes fines that could be up to three times higher if employer responsibilities are neglected.

• Employers must appoint a proxy who will represent the company regarding vehicles and traffic offences. This proxy is tasked with managing the tracking and allocation of demerit points to the correct driver. Failure to do so correctly can result in the employer being liable to pay multiplied fines.

• If an employee’s license is suspended or cancelled due to accumulating too many points, the employer faces operational risks and potential legal liability if such an employee continues to drive company vehicles.

• Hiring and recruitment for roles requiring driving will need adjustment. Potential employees may be required to disclose any existing demerit points or license restrictions, which would impact on their suitability for the position. Failure to disclose could lead to dismissal.

• Employment contracts and policies will likely need to be updated to make possession and maintenance of a valid driving license a condition of employment, and to set out procedures for dealing with employees whose licenses are suspended or cancelled.

• Employers must familiarise themselves with incapacity procedures to address situations where employees are no longer able to perform the functions they were hired for based on suspended drivers’ licenses.

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To minimise the risks and ensure compliance with AARTO, employers should consider the following proactive measures:

1. Appoint and Train a Proxy

   
   

   Designate a competent person as the proxy responsible for managing company vehicles under AARTO rules. This person should be trained on the AARTO points system and the importance of accurate point allocation to prevent employer liability.

2. Implement Robust Policies and Procedures

   
   

   Develop workplace policies that require all employees who drive company vehicles to provide consent to regularly check their AARTO records and demerit points. Establish procedures for what happens if points accumulate or licenses are suspended.

3. Require Driver Disclosure and Consent

   
   

   At recruitment and periodically during employment, require disclosures regarding any demerit points or suspensions. Obtain written consent to access and monitor driving records to comply with privacy laws and AARTO requirements.

4. Update Employment Contracts

   
   

   Include clauses making valid driver’s license possession and maintaining a clean driving record mandatory. Clarify consequences for non-compliance, such as disciplinary measures or dismissal.

5. Monitor Driving Records Continuously

   
   

   Regularly check employees’ AARTO status via the official AARTO website or authorised channels to identify any infractions early and take corrective action.

6. Manage Operational Impact

   
   

   Prepare contingency plans for handling situations where key drivers lose their licenses, which could involve reassigning duties or hiring additional drivers.

7. Educate Employees

   
   

   Conduct training sessions to inform employees about the new AARTO rules, the importance of safe driving, and potential consequences of accumulating demerit points.

8. Use Technology Tools

   
   

   Consider fleet management or driver monitoring software to assist with compliance and tracking of driver behaviour and AARTO statuses.

Some common traffic offences and their updated penalties include:

The introduction of AARTO from December 2025 marks a significant shift in road traffic law enforcement in South Africa, with far-reaching implications for employers. By appointing a proxy, updating employment frameworks, monitoring compliance effectively, and educating drivers, employers can mitigate the administrative and financial risks associated with the new AARTO system. This foresight will help ensure safer driving practices among employees and reduce the likelihood of costly penalties or operational disruptions due to license suspensions.