Minimum standards for contractors

Published 12 April 2024 | Updated 26 August 2024

There is a new framework for protecting the interests of certain workers in the gig economy.

On this page:

Who’s affected

There are new laws for independent contractors doing certain types of work.

The laws affects 2 kinds of independent contractors:

These types of contractors are known as ‘regulated workers’.

The changes also affect:

  • businesses engaging regulated workers (known as ‘regulated businesses’)
  • independent contractors who are working in a ‘road transport contractual chain’
  • other people in a road transport contractual chain.

Eligibility requirements

There are certain requirements a person must meet to be covered by the new laws.

To be considered a regulated worker, an employee-like worker or contractor in the road transport industry must:

  • be a party to a services contract as:
    • an individual
    • a director (or family member of a director) of a body corporate
    • a trustee of a trust
    • a partner in a partnership who performs work under the contract
  • perform all (or a significant majority) of the work under the services contract
  • not perform any work under the services contract as an employee.

The services contract the regulated worker is party to must have a constitutional connection. For example, the services contract could be between the regulated worker and a constitutional corporation.

Changes will also be made to the Independent Contractors Act 2006 to ensure consistency across workplace laws.

Read more about regulated workers on our Understanding regulated workers page.

‘Employee-like workers’

Calendar icon These changes start on 26 August 2024, or an earlier date set by the Australian Government.

The Fair Work Commission (the Commission) will have new powers covering certain independent contractors who perform digital platform work in the gig economy. These contractors are called ‘employee-like workers’. Learn more at Preparing for new regulated worker functions.

The Commission is the national workplace relations tribunal and registered organisations regulator.

A contractor will only be an employee-like worker if they meet the new definition. This includes that the contractor has 2 or more of the following:

  • low-bargaining power in negotiations in relation to their services contract
  • receives the same or less pay than an employee would get
  • little authority over how they perform work.

For the full definition, visit Employee-like workers.

Road transport industry contractors

Calendar icon These changes start on 26 August 2024, or an earlier date set by the Australian Government.

The Commission also has new powers for certain independent contractors in the road transport industry. These workers are known as ‘regulated road transport contractors’.

A contractor will only be a regulated road transport contractor if they meet new definition.

For the full definition, visit Regulated workers in the road transport industry.

Road transport contractual chains

A contractual chain is made up of a series of related contracts or arrangements between various workers and businesses. It’s like a supply chain.

A road transport contractual chain is a series of contracts or arrangements that involves certain workers and businesses within the road transport industry.

For example, a road transport contractual chain could include:

  • a person or business that requires the delivery of freight by road
  • the driver who makes the delivery
  • sub-contracting or other arrangements that sit between the business requiring the delivery and the driver making it.

At least one party to the primary contract or arrangement must be a constitutional corporation.

Some individuals aren’t part of a road transport contractual chain. These could include those who:

  • performs work in the capacity of an employee
  • have products delivered to them by a regulated worker for their own private or domestic use
  • perform work relating to the transport or dealing with of livestock.

The Commission’s new powers extend to people who are in a road transport contractual chain. This includes:

  • road transport contractors
  • employee-like workers in the road transport industry.

Minimum standards

The Commission will be able to set minimum standards for employee-like workers and regulated road transport contractors. They can do this by making either:

  • minimum standards orders (these are legally binding), or
  • minimum standards guidelines (these are non-binding).

‘Legally binding’ means that parties must comply with the order. If they don’t, they can face penalties.

A regulated worker can:

  • be covered by a minimum standards order or guidelines while working for a regulated business
  • be covered by a road transport contractual chain order or guidelines while performing work in a road transport contractual chain.

These orders and guidelines will specify the type of work, workers and businesses that they cover.

Minimum standards orders and guidelines can include terms about several matters, including:

  • payment terms
  • deductions
  • insurance.

For more information, visit:

The Commission will be able to make road transport contractual chain orders or guidelines that set standards for:

  • regulated road transport contractors
  • road transport employee-like workers
  • other people in a road transport contractual chain

Road transport contractual chain orders and guidelines can include terms relating to other matters. For example:

  • payment times
  • fuel levies
  • rate reviews
  • termination
  • cost recovery.

For more information, visit Road transport contractual chains.

We (the Fair Work Ombudsman) will be able to enforce minimum standards orders and road transport contractual chain orders. Penalties would apply for breaches of orders, like existing penalties for other breaches of the Fair Work Act.

Collective agreements for regulated workers

Calendar icon These changes start on 26 August 2024, or an earlier date set by the Australian Government.

The new laws will allow the creation of collective agreements for:

  • employee-like workers
  • regulated road transport contractors.

These agreements can be made by consent between:

  • a regulated business that is a digital labour platform operator or road transport business
  • an organisation that represents the industrial interests of those workers.

Collective agreements set terms and conditions for those workers in a similar way to enterprise agreements.

Unfair deactivation or termination

Calendar icon These changes start on 26 August 2024, or an earlier date set by the Australian Government.

The Commission will have the power to deal with disputes over unfair:

  • deactivation of an employee-like worker from a digital labour platform
  • termination of a road transport contractor’s contract by a road transport business.

Eligibility requirements will apply. Contractors who earn over the contractor high income threshold can’t apply to the Commission to consider whether their deactivation or termination was unfair.

For more information, visit:

Workplace delegates

Calendar icon These changes start on 26 August 2024, or an earlier date set by the Australian Government.

Regulated workers will be able to be workplace delegates.

Workplace delegates will be entitled to represent the industrial interests of current or potential union members that are regulated workers.

Regulated businesses can't take certain actions against a workplace delegate.

Access our updated information on delegates' rights in awards and agreements from our Workplace delegates page.

Advisory groups

New advisory groups will be set up to consult and advise on these workplace changes.

Regulated Worker User Group

The Commission has set up a Regulated Worker User Group to connect with regulated workers and regulated businesses. The User Group is one of the ways the Commission is trying to help affected workers and businesses understand:

  • what the changes are and how they might be affected
  • how to engage with their consultation processes.

Find out more: Regulated Worker User Group.

Expert Panel and Advisory Group

A new Expert Panel will be set up within the Commission. The Expert Panel will be a decision-making body empowered to deal with road transport industry related matters.

A Road Transport Advisory Group will also be set up. This group will advise the Commission and the Expert Panel on road transport industry related matters.

Resources and email updates from the Commission

The Commission has created resources to help workers and businesses understand the regulated workers changes.

The resources include:

The Commission has also launched a subscription service to provide updates about matters affecting regulated workers. Go to: Regulated worker updates.

Tools and resources

Related information