Safe City: 5 Most Common Legal Risks for Companies with Company Vehicles

Companies that operate company vehicles in the Republic of North Macedonia face increased legal risk, especially following the implementation of the Safe City system.

Automatic cameras, digital records, and intensified misdemeanor procedures mean that companies today are held liable more often, more quickly, and with higher financial implications.

If your company operates a vehicle fleet — these are the 5 most common legal risks you must understand and manage.

Why “Safe City” Increases Legal Risk for Companies

The system functions through automatic detection of:

• Speeding

• Running a red light

• Unregistered vehicles

• Other traffic violations

When a violation is committed with a company vehicle, the notification is most often delivered to the legal entity — not directly to the driver.

The notification of a violation established by an electronic system is delivered to the owner of the vehicle (the legal entity) via text message or email, with a link for downloading the record and the misdemeanor payment order, in accordance with Article 48-a paragraphs (1) and (2) of the Law on Misdemeanors. The deadline for downloading is 8 days (Article 48-a paragraph (4)).

This means:

• The procedure is initiated against the company;

• Deadlines are short;

• Financial penalties may accumulate.

Company Liability for a Violation Committed by an Employee

One of the most common questions is:

“Is the company liable if an employee commits a traffic violation?”

In practice — yes.

The legal entity may be fined if it:

• Fails to identify the driver within the statutory deadline;

• Has not established internal rules;

• Does not act upon the notification.

Additionally, in certain cases, liability may also be borne by the managing director.

The responsible person within the legal entity (including the managing director) will be subject to a misdemeanor sanction when the violation occurred due to their action, omission, or failure to exercise due supervision, in accordance with the Law on Misdemeanors. The law also provides liability of the responsible person for a violation committed by an employee due to failure of proper supervision.

Insufficiently Regulated Internal Policies for the Use of Company Vehicles

Many companies do not have:

• A written rulebook for the use of company vehicles;

• Contractual clauses on liability;

• A procedure for driver records;

• Travel orders.

This creates a legal gap. Without clearly defined rules:

• It is difficult to seek recourse from the employee;

• The company bears the full financial burden;

• The risk of repeated violations increases.

The travel order is a key document for recording and identifying the driver, and its proper completion and retention is a legal obligation. Without clear internal rules and contractual clauses, proving intent or gross negligence for recourse purposes becomes more difficult.

Financial Fines and Cumulative Sanctions

Fines for legal entities may be significantly higher than those for individuals.

The risk increases when:

• The same vehicle commits multiple violations;

• The company manages a larger fleet;

• There is no control and monitoring system.

Additionally, repeated violations may affect:

• Reputation;

• Insurance premiums;

• Business relations with partners.

In addition to fines imposed on the legal entity, the responsible person (the managing director) may also face fines, which can be substantial (e.g., 30% of the fine imposed on the legal entity, pursuant to Article 96 paragraph (5) of the Law on Road Transport). For foreign companies operating in North Macedonia, this may create additional complications in relation to local regulatory compliance.

Insurance and Civil Liability

Many managers incorrectly assume that insurance covers everything. However, the key questions are:

• Does the policy cover gross negligence?

• Is coverage valid if the vehicle is used outside working hours?

• Who is liable in the event of serious bodily injury?

In the event of a traffic accident involving damage or injury, the company may face:

• A civil lawsuit;

• Recourse claims from the insurer;

• Additional court costs.

It is important to emphasize that compulsory motor third-party liability insurance covers damage to third parties. However, the insurer has the right of recourse against the driver (and indirectly against the company) in cases of gross negligence or intentional damage.

Potential Criminal Liability

In certain situations, especially where serious consequences occur, questions may arise regarding:

• Criminal liability of the driver;

• Liability of the responsible person within the company;

• Failure to exercise proper supervision.

This is particularly relevant if:

• The driver was unfit to drive;

• The company failed to exercise control;

• The vehicle was technically defective.

Criminal liability of the legal entity is also possible when the criminal offense is committed through negligence, if punishment for such an offense is prescribed, pursuant to Article 28-b paragraph (3) of the Criminal Code.

How Can a Company Reduce Legal Risk?

Prevention is less costly than litigation. Companies operating company vehicles should establish:

• Internal Rulebook: Clearly defined rules on use, liability, and sanctions;

• Contractual Clauses with Employees: Regulation of recourse and financial liability;

• Records and Control: Accurate records of who drives which vehicle and when;

• Regular Legal Review: Ensuring compliance with current legislative amendments.

Why Is This Especially Important for Foreign Companies in North Macedonia?

Foreign investors and companies operating local subsidiaries often:

• Are not fully familiar with misdemeanor regulations;

• Lack local compliance procedures;

• Underestimate administrative risks.

A single misjudgment may create financial and operational consequences.

Frequently Asked Questions (FAQ)

Is the company liable for a Safe City camera fine?

Yes, if the vehicle is registered to the legal entity and the driver is not identified within the statutory deadline.

Who pays the fine — the company or the driver?

Initially, the fine is delivered to the company. Subsequently, recourse may be sought from the employee if there is a legal basis.

Can the managing director be personally liable?

In certain cases — yes, especially if there is no supervision system in place.

How can the company protect itself?

Through internal acts, contracts, record-keeping, and legal prevention.

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Conclusion: Fleet Management Is Not Only Logistics — It Is Legal Strategy

In conditions of digital surveillance and automated misdemeanor procedures, company vehicles represent a real legal risk. Companies that manage this risk proactively:

• Reduce financial losses;

• Avoid litigation;

• Protect their reputation.

The question is not whether a violation will occur. The question is whether the company is legally prepared when it does.

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Note: This text is prepared solely for informational purposes and cannot be considered legal advice or guidance for specific action. Legal matters are complex and each case has its own specifics that must be assessed individually. Therefore, we recommend consulting a qualified Attorney who can provide a tailored solution for your legal matter.