New Commonwealth laws provide protections for independent contractors working in the road transport industry and gig workers, from 26 August 2024. These laws operate alongside Victoria’s Owner Drivers and Forestry Contractors Act 2005. Source: Timberbiz
There are laws hirers and freight brokers must follow when engaging owner drivers or forestry contractors. Failing to comply with some of these laws is a crime.
If you are an owner driver or forestry contractor, the hirer or freight broker who engages you must adhere to the laws set out below. You can report a business you think is breaking these laws through an online form.
The Owner Drivers and Forestry Contractors Act 2005 and Owner Drivers and Forestry Contractors Regulations 2017 outline the requirements you must follow when engaging an owner driver or forestry contractor.
A forestry contractor is someone that runs a business to:
- harvest forest products using motorised equipment that they supply
- transport forest products.
- The contractor supplies the vehicles and operates at least one of them.
A hirer is someone that engages an owner driver or forestry contractor.
A freight broker is a broker or agent that procures or arranges the engagement of an owner driver or forestry contractor by a hirer. This includes online platforms that facilitate the engagement of owner drivers or forestry contractors by hirers.
If you are engaging an owner driver or forestry contractor for a total of 30 days or more in any 3-month period, you must ensure they receive the relevant extensive information.
This information must be provided before they start work.
Where the engagement was initially for fewer than 30 days within a 3-month period but is extended, this information must be provided on the 30th day of the engagement.
You must use written contracts if the engagement is for 30 days or more or has no fixed end-date. The contract must include the:
- guaranteed minimum hours of work or income level
- rates to be paid
- minimum notice to end the contract or payment to be made instead of notice.
Hirers, owner drivers and forestry contractors must not engage in ‘unconscionable conduct’ with respect to each other, including during negotiations.
Generally speaking, unconscionable conduct occurs where a stronger party to a transaction exploits a weaker party in a way that is unreasonable or unfair. However, what may amount to unconscionable conduct, or an unjust term will depend on all of the parties’ circumstances. It is important to seek legal advice.
Owner drivers, forestry contractors and hirers can refer allegations of unconscionable conduct or unjust contract terms to the VSBC for alternative dispute resolution. If not resolved, they can then be referred to VCAT.
You must not subject or threaten an owner driver or forestry contractor to any detriment for:
- raising health and safety issues
- claiming their rights under the Owner Drivers and Forestry Contractors Act 2005 or the Code of Practice
- seeking to negotiate a proposed engagement or contract
- seeking to renegotiate an existing engagement or contract.
More information is available at:
https://www.vic.gov.au/transport-and-forestry-business-support
