Regulated workers in the road transport industry

Learn about minimum standards protecting some contractors working in the road transport industry.

On this page:

Overview

Some independent contractors (contractors) have special laws that apply to them. These contractors are called regulated workers.

There are 2 types of regulated workers:

  • employee-like workers doing digital platform work (employee-like workers)
  • regulated road transport contractors.

This page covers regulated workers in the road transport industry and the rules that apply to them.

Regulated workers in the road transport industry can be either:

  • road transport employee-like workers (contractors who work in the road transport industry and get their work from a digital labour platform, such an app or a website)
  • regulated road transport contractors.

A contractor will only be a regulated worker if they meet certain requirements explained on this page.

Regulated workers in the road transport industry can have additional rules about pay and conditions set by:

The Fair Work Commission (the Commission) is responsible for making or registering these rules.

Eligible regulated workers in the road transport industry have other rights and protections, including:

  • protection against unfair deactivation from a digital labour platform
  • protection against unfair termination
  • protection against unfair terms in services contracts
  • workplace delegate's rights.

Road transport employee-like workers

Employee-like workers are a type of regulated worker.

Employee-like workers working in the road transport industry are called road transport employee-like workers.

For information about rules and entitlements for these workers, visit Employee-like workers.

Road transport employee-like workers can be part of a road transport contractual chain. While performing work in a contractual chain, they can be covered by road transport contractual chain orders and guidelines.

Learn more about Road transport contractual chain orders and guidelines.

In all other aspects, road transport employee-like workers are the same as other employee-like workers.

Road transport employee-like workers are different to regulated road transport contractors.

Read more about regulated road transport contractors below.

Regulated road transport contractors

A regulated road transport contractor is a contractor who:

  • works in the road transport industry
  • is a party to a services contract as an individual or:
    • a director (or family member of a director) of a body corporate that is a party to a services contract
    • a trustee of a trust in which one trustee is a party (in that capacity) to a services contract 
    • a partner in a partnership in which one partner is a party (in that capacity) to a services contract
  • performs all or most of the work under the services contract
  • doesn’t perform work under the services contract as an employee
  • isn’t an employee-like worker.

The services contract must have a constitutional connection. For example, the services contract could be between the contractor and a constitutional corporation.

Businesses engaging regulated workers in the road transport industry are called ‘regulated businesses’.

Road transport industry

For the purposes of the regulated worker rules, the road transport industry includes the following industries, as defined in the relevant awards as in force on 1 July 2024:

Minimum standards

The Commission can set standards for regulated road transport contractors by making:

  • minimum standard orders (MSOs)
  • minimum standards guidelines (MSGs)

These are sets of rules about pay and conditions for regulated road transport contractors.

They aren’t the only rules that can apply to workers and businesses. Other rules can apply, including:

MSOs are legally binding. If they aren’t followed, an individual or business can face penalties.

MSGs aren’t legally binding.

Regulated road transport contractors may also be covered by road transport contractual chain orders and guidelines. For more information, read Road transport contractual chain orders and guidelines.

Regulated worker minimum standards cases

Access a list of current regulated worker minimum standards cases from the Commission website: Regulated worker minimum standards cases.

The Commission will publish key information and documents for each case as they become available.

What can be included

MSOs and MSGs can deal with the same workplace matters.

They must explain who is covered by the MSO or MSG. An MSG can’t be made to cover the same workers, businesses and matters that are already covered by an MSO.

They can include rules about a range of matters, including:

  • payment
  • insurance
  • consultation
  • cost recovery
  • representation
  • delegates' rights.

They must include a term on dispute resolution.

They can’t include some terms, such as:

  • overtime rates
  • rostering arrangements
  • matters that are primarily of a commercial nature and don’t affect the terms of engagement of the worker
  • matters that would change the form of engagement or status of the worker (for example that would deem the worker to be an employee)
  • workplace health and safety matters that are dealt with by other federal, state and territory laws
  • matters relating to road transport that are comprehensively dealt with by other laws.

How MSOs and MSGs are made

The Commission can make these orders and guidelines on its own initiative or by application.

An application for an MSO or MSG can be made by:

  • a registered organisation, such as a union or employer association, that represents workers or businesses who would be covered by the MSO or MSG
  • a business that would be covered by the MSO or MSG, such as a ride-share company
  • the Minister for Employment and Workplace Relations.

Find out more from the Commission: Regulated worker minimum standards.

Road transport contractual chain orders and guidelines

Regulated road transport contractors can work in road transport contractual chains.

A road transport contractual chain is a series of contracts or arrangements for performing work in the road transport industry.

Road transport contractual chains can be covered by orders or guidelines, similar to MSOs and MSGs.

Regulated road transport contractors can be covered by:

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

A regulated road transport contractor’s pay and conditions may change depending on the order or guidelines that apply to the work they are currently performing.

For more information, visit Road transport contractual chains.

Collective agreements

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

These agreements can be made by consent between:

  • a road transport business
  • an organisation that represents the industrial interests of those workers, like a union.

Like enterprise agreements, consultation must take place before a collective agreement is registered.

The Commission is responsible for registering collective agreements and dealing with disputes.

Regulated road transport contractors and road transport businesses must comply with a collective agreement. They can face penalties if they don’t.

For more information, visit the Commission’s page: About collective agreements.

Unfair termination

Eligible regulated road transport contractors can apply to the Commission for a remedy if they think the regulated business they work for has unfairly terminated their services contract.

If the Commission determines that the termination is unfair, it may order:

  • a new contract be entered into and the contractor be paid any income they lost because of the unfair termination, or
  • compensation be paid to the contractor.

To be eligible, the worker must meet certain criteria. This includes that they:

  • have been performing work for the road transport business on a regular basis for a period of at least 6 months from 26 August 2024
  • earn less than the contractor high income threshold.

Regulated road transport contractors need to apply to the Commission within 21 days of the termination.

For more information, access the Commission’s pages on:

Unfair terms in contracts

Regulated road transport contractors or an organisation representing their industrial interests, like a union, can apply to the Commission for a remedy if:

  • they think their services contract contains an unfair contract term about certain workplace relations matters, and
  • their services contract was entered into on or after 26 August 2024.

Regulated road transport contractors can apply to the Commission if they earn less than the contractor high income threshold.

In deciding if a contract term is unfair, the Commission can consider a range of factors relating to the contract, including:

  • the bargaining powers of the parties
  • whether the remuneration under the contract is less than what an employee would get for similar work
  • whether the term is harsh, unjust or unreasonable.

If the Commission decides that one or more contract terms is unfair, they can make an order to set aside, amend or vary all or part of the contract.

For more information, visit the Commission’s page: Independent contractor disputes about unfair contract terms.

Workplace delegates

A workplace delegate (delegate) is a person appointed or elected under the rules of an employee organisation (for example, a union) to represent members of the organisation:

  • who perform work in a particular regulated business, or
  • who perform work for, or that has been arranged or facilitated by, a particular regulated business (for example, a digital labour platform operator).

Regulated businesses can’t take certain actions against a delegate who is a regulated worker in the road transport industry.

Delegates can represent the industrial interests of regulated workers in the road transport industry. Further, regulated workers in the road transport industry can be appointed or elected as a delegate if the rules of the particular employee organisation allow it.

Delegates' rights

Delegates have certain unique rights.

Delegates are entitled to represent the industrial interests of regulated workers who are current or potential union members. This includes in disputes with regulated businesses.

Delegates are also entitled to reasonable:

  • communication with road transport contractors who are members or potential members
  • access to the workplace facilities provided by a regulated business for the purpose of representing those workers’ industrial interests.

Minimum standards orders may include delegates’ rights terms. Regulated businesses must comply with these terms.

Protections for delegates

Regulated businesses can’t take certain actions against a delegate who is a road transport contractor and who they:

  • engaged under a services contract, or
  • arranged for or facilitated entry into a services contract under which the delegate performs work.

A regulated business can’t:

  • unreasonably refuse to deal with such a delegate
  • knowingly or recklessly make a false or misleading representation to such a delegate, or
  • unreasonably hinder, obstruct or prevent such a delegate exercising their rights.

Regulated workers in the road transport industry who are also delegates for their union are also protected from adverse action taken because of their delegates rights.

Access our Workplace delegates page for other information on these rights and protections.

Industrial action

Regulated road transport contractors are protected from adverse action because they engage in certain types of industrial action if they are:

  • covered by an MSO, or
  • included in an application for an MSO.

Industrial action can happen when regulated road transport contractors and road transport businesses are trying to resolve a dispute.

Access other general information from our Industrial action page.

Sham contracting

Regulated workers are contractors.

Contractors aren’t employees. If a business or individual tells someone they’re a contractor when they’re actually an employee, this may be sham contracting.

Sham contracting is illegal. Find out more at Sham contracting.

Help available

There’s help available for regulated road transport contractors, including from us and other government bodies. Visit Other help for regulated workers.

Source reference: Fair Work Act Division 3A, Part 1-2, Chapter 1, Chapter 3A, Chapter 3B

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