About road transport contractual chain orders and guidelines

Road transport contractual chains orders create rights and obligations that apply to the persons in a road transport contractual chain set out in the order. Orders are legally binding.

Road transport contractual chain is defined at section 15RA of the Fair Work Act 2009.

Road transport contractual chain guidelines provide non-legally binding standards for persons in a road transport contractual chain set out in the guideline.

Before we make a road transport contractual chain order or guidelines, we must consider the minimum standards objective  and the road transport objective. The minimum standards objective can be found at section 536JX of the Fair Work Act 2009. The road transport objective can be found at section 40D of the Fair Work Act 2009.

Before making a road transport contractual chain order, we must:

• genuinely engage with the parties to be covered
• consult the Road Transport Advisory Group
• follow a consultation process
• have regard to the commercial realities of the road transport industry
• be satisfied that making or varying the order will not unduly affect the viability or competitiveness of owner drivers or similar persons
• take into account any current or proposed road transport contractual chain orders and minimum standards orders, and
• take reasonable steps to ensure that the coverage of the order is clear.

Terms we must include

Road transport contractual chain orders or guidelines must include terms about:

• who the order or guideline will cover
• a process for settling disputes about the order
• how the order interacts with minimum standards orders.

Terms we can include

Road transport contractual chain orders or guidelines can include terms about:

• payment times
• fuel levies
• rate reviews
• termination, including one way termination for convenience
• cost recovery.

The law does not require us to include these terms and we can decide to include other terms.

Terms we cannot include

A road transport contractual chain order or guidelines cannot include terms about:

• overtime rates
• rostering arrangements
• matters relating to work health and safety that are comprehensively dealt with by other laws
• terms that would change the form of engagement or status of workers covered by the standards (including by deeming them employees)
• terms about matters relating to road transport that are otherwise comprehensively dealt with by the Heavy Vehicle National Law, the Road Traffic (Vehicles) Act 2012 (WA), the Traffic Act 1987 (NT) or other laws.