The Order only applies to services provided by a 'contractor
driver' employed or engaged in:
distribution operations involving the transport of retail goods
destined for sale or hire by a supermarket chain (a business
operating five or more supermarkets); and
long distance operations within the meaning of the Road
Transport (Long Distance Operations) Award 2010, which broadly
covers interstate journeys exceeding 200 km or return journeys
exceeding 500 km.
Summary of obligations imposed by the Order
Contractor drivers must be paid both minimum
hourly rates, including pro-rata payments for any part of an hour
spent providing services, and running costs per kilometre for any
vehicle they supply.
The minimum rates are set out in a series of schedules to the
Order and will automatically increase by 2% per year commencing on
4 April 2017.
The prescribed hourly rate must be paid 'for each hour or
part thereof that a contractor driver necessarily spends in
providing road transport services' and which include a long
list of activities apart from driving, such as:
while the contractor driver is required by the hirer to be at
its disposal or direction;
during rest periods required by law;
loading or unloading; and
cleaning, inspecting, servicing or repairing a vehicle or
trailer supplied by the hirer.
The paid hours of work will run from when a driver reports for
work until they arrive at the ultimate location where the goods are
to be delivered.
If a hirer regularly engages a contractor driver over a 12 month
period, the hirer must permit the contractor driver to take up to
four weeks of unpaid leave during each 12 month period that
Supply chain participants (consignors, consignees,
intermediaries and operators of premises for loading or unloading)
must take all reasonable steps to ensure that any contract they
have with another party in the supply chain complies with the
Hirers are also required to submit to annual compliance audits
by a supply chain participant with which they contract unless the
contract provides (or contracts collectively provide) for the
carriage of goods on fewer than 270 days in a financial year.
If the auditing party believes that the Order has not been
complied with, they may, in some circumstances, be required to
notify the Fair Work Ombudsman of the suspected non-compliance.
What steps must you take before April 2016?
Before the Order comes into force on 4 April 2016, parties
caught by the Order must:
in the case of transport operators, establish which
subcontractors currently engaged are 'contractor drivers'
who fall within the scope of the Order;
in the case of supply chain participants, determine whether any
of its transport services providers engage 'contractor
drivers' who fall within the scope of the Order;
review contracts with any 'contractor drivers' or with
any party that engages 'contractor drivers' and determine
the remuneration payable under the Order;
take steps to promote the Order to contractor drivers, and to
display the Order on websites and in depots; and
become familiar with the new obligations imposed by the Order
and ensure that current computer systems allow tracking of hours
and kilometres travelled by 'contractor drivers' so as to
calculate payments due to those drivers.
The terms of the Order are lengthy and complex. A more
comprehensive bulletin discussing the terms of the Order is
Winner – EOWA Employer of Choice for Women Citation 2009,
2010, 2011 and 2012
Winner – ALB Gold Employer of Choice 2011 and 2012
Finalist – ALB Australasian Law Awards 2008, 2010, 2011 and
2012 (Best Brisbane Firm)
Winner – BRW Client Choice Awards 2009 and 2010 - Best
Australian Law Firm (revenue less than $50m)
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
This decision will be significant to aviation industry participants in assessing whether claimants in the context of international or domestic carriage by air have commenced claims in an appropriate forum in Australia.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).