Road transport contractual chains

Understand who can be part of a road transport contractual chain and the minimum standards that can apply.

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Overview

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.

Regulated workers can be part of road transport contractual chains.

The Fair Work Commission (the Commission) can make road transport contractual chain orders (RTCCOs) or guidelines (RTCCGs) that cover people and businesses in road transport contractual chains, including regulated workers and regulated businesses.

These are similar to the minimum standards orders and guidelines that the Commission can make to cover regulated workers and regulated businesses.

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

Who can be in a road transport contractual chain

The chain starts with 2 parties agreeing to a primary contract or arrangement, but the work is performed by either regulated workers or employees.

The parties to the first or subsequent contracts or arrangements in the chain can be part of the road transport contractual chain. A regulated worker who performs work under a services contract in the chain can also be part of a road transport contractual chain.

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

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

Regulated workers in road transport contractual chains

Regulated workers in the road transport industry can be either:

A regulated worker can:

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

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

Minimum standards

The Commission can set minimum standards for road transport contractual chains by making:

  • road transport contractual chain orders (RTCCOs)
  • road transport contractual chain guidelines (RTCCGs).

These are sets of rules about pay and conditions.

They aren’t the only rules that can apply to workers and businesses in a road transport contractual chain. Other rules can apply, including:

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

RTCCGs aren’t legally binding.

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

RTCCOs and RTCCGs must specify the work, the businesses and the regulated workers they cover.

A RTCCO must also set out:

  • how it interacts with an MSO (to the extent of any inconsistencies between them)
  • how to resolve disputes that arise under the order.

RTCCOs and RTCCGs can also include terms about a range of matters, including:

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

However, they must not include terms about:

  • overtime rates
  • rostering arrangements
  • matters that would change the form of engagement or status of a regulated road transport contractor or road transport employee-like worker covered by the RTCCO
  • work health and safety and road transport matters that are comprehensively dealt with by other laws (including the Heavy Vehicle National Law Act 2012 (Qld), the Road Traffic (Vehicles) Act 2012 (WA) and the Traffic Act 1987 (NT)).

The Commission can’t make RTCCGs that cover the same people and matters already covered by an RTCCO.

How they're made

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

An application for a RTCCO or RTCCGs can be made by:

  • an organisation representing the interests of a person in a road transport contractual chain
  • a regulated business in a road transport contractual chain
  • a person who is a primary party to the first contract or arrangement in a road transport contractual chain
  • the Minister for Employment and Workplace Relations.

Rights and protections for regulated workers in road transport contractual chains

Regulated workers have other rights and protections under the Fair Work Act, whether they’re in a road transport contractual chain or not.

For more information, visit:

Help available

There’s help available for regulated workers in road transport contractual chains, including from us and other government bodies. Go to Other help for regulated workers.

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

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