Transport Operators should be aware of the Road Safety Remuneration Tribunal and the obligations that may be imposed upon you through the Orders the Tribunal makes.
The Road Safety Remuneration Tribunal (RSRT) is an independent national tribunal established under the Road Safety Remuneration Act 2012 (Cth) (“the Act”).
Under the Act, the RSRT can set pay and related conditions for road transport drivers in the road transport industry through the making of Road Safety Remuneration Orders (RSRO’s).
An RSRO may apply to impose requirements on an employer or hirer as well as participants in the supply chain in relation to a road transport driver such as supermarkets.
The RSRT’s first RSRO came into force on 1 May 2014.
That Order requires those involved in long distance transport operations (an interstate journey exceeding 200 kilometres or any return journey exceeding 500 kilometres) and those involved in transportation of goods to supermarkets to ensure that:-
- Written contracts with employed drivers and subcontractors which set out the terms of the driver’s engagement are entered into;
- The written contracts include a mechanism for at least an annual review of the rates of payment;
- A “safe driving plan” for each long-distance journey using a heavy vehicle (Gross vehicle mass of more than 4.5 tonnes) is prepared; and
- A drug and alcohol policy requiring random testing that is in accordance with the relevant Australian Standards is in place;
- Drivers receive training in work health and safety systems and procedures for the road transport industry;
- A copy of all employment contracts are retained for a period of seven years after the contract ends;
- Contractor drivers are paid within 30 days of the receipt of the contractor’s tax invoice.
On 26 August 2015, the RSRT issued a draft Contractors Minimum Payments Road Safety Remuneration Order. A copy of the draft Order is available on the RSRT website at http://www.rsrt.gov.au/index.cfm/remuneration-orders/draft-rsro/26august2015/draft-contractor-driver-minimum-payments-rsro-2016/
Similar to the first RSRO, the draft order is also to apply specifically to drivers involved in the distribution of goods destined for sale or hire by a supermarket chain or drivers involved in long distance operations in the private road transport industry.
The draft order requires employers or hirers to ensure:-
- Minimum rates of pay for contractor drivers.
- 4 weeks unpaid leave is available to contractor drivers who have been hired for the preceding 12 months.
The draft order provides for a commencement date of 1 January 2016.
Assuming the draft order comes into effect on that date without any further changes, operators will need to ensure that they comply with these new regulations.
Breaches of an Order may result in:-
- a fine of up to $10,200 per individual or $51,000 per company;
- an order for compensation to be paid to an affected party; or
- an injunction to prevent further contravention of the 2014 Order.
If you are involved in the transport industry and would like more advice or assistance with meeting your obligations under the RSRO’s please contact Steven Hayles or Stuart Naylor.
