Chain of Responsibility Laws: What Every Operations Manager Needs to Know

A driver fatigued from back-to-back deliveries. A mis-loaded trailer that shifts dangerously at high speed. A subcontractor skipping maintenance to stay on schedule. These are symptoms of poor control in the supply chain.

That’s why Chain of Responsibility (CoR) laws exist: to ensure the responsibility of safety is not placed solely on the driver.

Operations managers play a critical role in transport safety. Any business involved in the movement of goods by road shares responsibility under Chain of Responsibility laws.

Under the Heavy Vehicle National Law (HVNL), liability is not limited to the driver. Scheduling decisions, loading practices, vehicle maintenance, and contractor management all influence risk and can carry legal consequences when things go wrong.

Clear accountability across the transport chain is now a legal expectation. For operations teams, that means understanding where risks exist and taking active steps to manage them before they lead to harm.

What is the Chain of Responsibility?

Chain of Responsibility (CoR) is a legal framework within Australia’s HVNL that holds all parties in the road transport supply chain accountable for safety. It recognises that risks on the road often stem from decisions made off the road - such as scheduling, loading, or contracting - and places legal duties on anyone who has the ability to influence or control transport activities. HVNL applies only in the participating states/territories (all except WA and NT).

By assigning legal obligations across the supply chain, CoR creates a clearer standard for managing risk and preventing avoidable incidents.

Am I in the chain?

Under CoR laws, liability is based on your ability to influence safety outcomes, not your job title. Anyone involved in planning, managing, or executing transport tasks can be part of the chain.

The CoR chain often involves:

• Consignors – those who arrange for goods to be transported
• Schedulers – those who set delivery timeframes or routes
• Loaders and packers – those responsible for how goods are secured
• Consignees – those receiving the goods
• Operators and employers – those who manage fleets or subcontract drivers
• Contractors and subcontractors – involved in executing the transport task
• Site and facility managers – especially where loading or unloading occurs

Operations managers in particular are often central to these moving parts. You may be coordinating warehouse activity, setting delivery targets, or managing third-party logistics providers. These decisions shape risk. Under CoR, they also carry legal responsibility.

Key compliance risks you need to manage

Operations teams are often responsible for the conditions that directly impact safety on the road. CoR laws identify several high-risk areas where poor processes or lack of oversight can lead to serious breaches.

Common compliance risks include:

• Mass and dimension – exceeding permitted weight or size limits
• Load restraint – poorly secured cargo that can shift or fall
• Driver fatigue – unsafe scheduling or unrealistic delivery timeframes
• Vehicle condition – unroadworthy vehicles due to missed maintenance
• Speed management – direct or indirect pressure to speed
• Drug and alcohol control – lack of fit-for-duty monitoring
• Subcontractor oversight – unclear responsibilities or no CoR compliance checks
• Documentation and training – missing records or outdated procedures
• Health and fitness for duty – not verifying drivers are physically fit for the task
• Site access and facilities – unsafe loading/unloading environments

Each of these areas can link back to decisions made by operations managers. If those decisions contribute to unsafe outcomes, your organisation - and you personally - may be held accountable under the HVNL.

Your primary duty under CoR laws

Under the HVNL, every party in the transport chain has a primary duty to ensure the safety of their transport activities, so far as is reasonably practicable.

For operations managers, this means taking ownership of processes that affect vehicle safety, driver wellbeing, and overall transport performance. That could include:

• Ensuring realistic schedules that don’t encourage fatigue
• Verifying that vehicles are maintained before dispatch
• Making sure subcontractors meet CoR obligations
• Documenting and communicating safe loading procedures

Executives and senior managers also have a duty to exercise due diligence - to be aware of risks, understand legal obligations, and ensure appropriate systems are in place to manage safety effectively.

How a safety management system supports CoR compliance

A well-structured Safety Management System (SMS) is one of the most effective ways to meet your obligations under CoR laws. While not legally required under the HVNL, regulators strongly recommend implementing an SMS to demonstrate that risks are being identified, controlled, and monitored.

An effective SMS helps you:

• Document policies and procedures that reflect actual practices
• Track training and ensure staff understand their responsibilities
• Monitor maintenance, load management, and driver fitness
• Capture and report incidents, near misses, and audit findings
• Maintain evidence of compliance and corrective actions taken

For operations managers, a digital SMS makes these tasks far easier to manage - especially across multiple teams, sites, or contractors. Platforms like myosh centralise your compliance records and give you visibility into how well safety controls are being applied across the business.

The cost of non-compliance

Breaking your obligations under CoR laws can lead to serious legal and financial consequences - even if no incident occurs. It’s enough for regulators to show that a party failed to take reasonable steps to manage known risks.

The current maximum penalties for a Category 1 offence (fines are indexed annually) under the HVNL are:

• Up to $3+ million for corporations
• Up to $377,639 and/or five years' imprisonment for individuals

These penalties apply where recklessness or gross negligence contributed to safety risks. The reputational damage, potential loss of contracts, and increased insurance exposure only add to the cost.

Stay ahead of CoR requirements

CoR laws shift the focus of transport safety from the road to the entire supply chain. For operations managers, that means having visibility over the risks created by decisions made in warehouses, at loading bays, and through contractor arrangements.

Staying compliant starts with awareness but is only sustained through systems. Tools like the myosh safety inspection software help teams monitor risks, document inspections, and stay audit-ready.

Get a free trial of myosh today and see how smarter safety tools can support your compliance and protect your people.