Road Safety Remuneration Bill Introduced to Parliament

On 23 November 2011 the Transport Minister, Anthony Albanese introduced the Road Safety Remuneration Bill 2011 into parliament. The Bill, if passed, will add another layer of regulation to the already heavily regulated road transport industry.

The Road Safety Remuneration Tribunal

It will establish a new Road Safety Remuneration Tribunal with the objective of promoting safety and fairness in the industry. The Tribunal will be made up of Fair Work Australia members along with work, health and safety experts and is expected to commence on 1 July 2012.

Application of the Bill

The Bill will apply to all employed and self-employed (independent contractor) drivers in the road transport industry as defined by reference to the modern awards that apply in the industry.

For example the Bill will apply to employed and independent contractor drivers in the road transport and distribution industry as defined in the Road Transport and Distribution Award 2010. 

Interaction with State Laws

The Bill is not intended to over-ride State laws dealing with owner-driver contracts but it will provide that any benefit arising for a driver under an RSRO will not be reduced because of the operation of any other law of the State or Commonwealth. In particular the Bill is not intended to exclude or limit the operation of Chapter 6 of the Industrial Relations Act 1996 (NSW).

Enforceable Instruments

The Bill will allow the Tribunal to inquire into sectors, issues and practices within the industry and where appropriate determine mandatory minimum rates of pay and related conditions for employed and self-employed drivers.

These determinations will be known as Road Safety Remuneration Orders (RSROs) and will be in addition to any existing rights drivers have under industrial instruments, contract of employment or contracts for services. RSROs may be made by the Tribunal on its own initiative or on application.

The Bill also grants the Tribunal the power to grant ‘safe work remuneration approvals’ which is essentially the power to approve a collective agreement between a hirer and independent contractors. A hirer is what is more commonly referred to as a principal contractor in the industry.

A RSRO and a safe work remuneration approval will prevail over a law of a State or Territory to the extent of any inconsistency.

Civil Penalties

If the principal contractor or employer breaches a RSRO or a safe work remuneration approval, they may be subject to a civil penalty of up to $33,000 per breach as well as an order granting an injunction or interim injunction to prevent, stop or remedy the effects of a breach, an order awarding compensation for loss and any other appropriate order.

The time limit for applications for breach is 6 years after the day on which the contravention occurred.

Disputes

The Tribunal will also be empowered to resolve disputes between drivers, their hirers or employers and participants in the road transport industry supply chain about remuneration and related conditions insofar as they promote unsafe work practices.

In addition to the above, the Tribunal will also have jurisdiction to deal with disputes arising from the termination of a road transport contract. A road transport contract is defined as a contract for services under which a road transport driver who is an independent contractor is to provide road transport services to the other party to the contract. The contract may be in writing, oral, or partly in writing and partly oral.

The Tribunal can deal with such a dispute as it considers appropriate including by mediation or conciliation, recommendation or expressing an opinion or arbitration with the consent of the parties.

Compliance

The Fair Work Ombudsman will be responsible along with some registered organisations with entry permits for compliance with the Bill.

At the moment this is only a Bill and not legislation. We will be keeping up to date on its developments and it if looks to be passed through parliament we will update our clients and provide more detailed information about the effects of the Bill.

If you have any questions at this stage please contact National Workplace Lawyers on +61 2 9233 3989. 

National Workplace Lawyers

Note — this is for information purposes only and does not purport to be comprehensive or to render legal advice.