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Contract Determination Ruling

On 23 February 2012, the full bench of the Industrial Court of New South Wales made a determination about the interpretation and application of provisions of the Transport Industry – General Carriers Contract Determination (the Contract Determination).

There were three proceedings instituted in the court and referred to the full bench by direction of the president. The proceedings involved three contract carriers claiming against a principal contractor for underpayment of remuneration under the Contract Determination. The proeedings were heard concurrently.

The questions referred pertained mainly to the proper application of clause 16 – remuneration of the Contract Determination. The application of this Contract Determination and the calculation of remuneration in clause 16 is critical to many transport operators to ensure compliance with the Contract Determination and the Industrial Relations Act 1996 (the 1996 Act).

The questions and answers in this case accord with our interpretation of the Contract Determination and are worth noting.

 

Question

Answer

Whether the time a contract carrier spent travelling empty can be properly regarded as time spent engaged in a ‘contract of carriage’ for the purposes of section 309 of the 1996 Act and the Contract Determination.

Time spent by contract carriers in travelling empty is to be properly regarded as falling within the definition of contract time in the Contract Determination if it is in relation to a contract of carriage between a contract carrier and a principal contractor.

Whether the contract carrier is entitled to be paid the running rate per kilometre and the hourly standing rate in schedule 1 to the Contract Determination, or either of them for all time and distance that the contract carrier travels without goods being loaded onto the carrier's vehicle including for the time and distance travelled:

(a) between delivering and picking up goods;

(b) from the principal contractor's depot to pick up goods; or

(c) back to the principal contractor's depot after delivery goods.

A contract carrier is entitled to be paid in accordance with the provisions of clause 16 of the Contract Determination with respect to contract distance and contract time for all time and distance that the contract carrier travels without goods being loaded onto the vehicle, including for the time and distance travelled:

(a) delivering and picking up goods;

(b) from the principal contractor's depot to pick up goods; and

(c) back to the principal contractor's depot after delivery of goods,

(d) provided such travel occurs in relation to a contract of carriage between the contract carrier and the principal contractor.

Whether the contract carrier is entitled to be paid the hourly standing rate in Schedule 1 for all time spent by the carrier in:

(a) loading or unloading goods;

(b) performing the obligations set out in clause 6(5) of the Contract Determination;

(c) attending to all necessary paperwork in accordance with obligations set out in clauses 6(17), 6(19) and 6(20) of the Contract Determination; or

(d) waiting for goods to be loaded/unloaded onto the contract carrier's vehicle by other persons.

The contract carrier is entitled to be paid the hourly standing rate in schedule 1 for all time spent in:

(a) loading or unloading goods;

(b) performing the obligations set out in clause 6(5) of the Contract Determination;

(c) attending to all necessary paperwork in accordance with obligations set out in clauses 6(17), 6(19) and 6(20) of the Contract Determination; and

(d) being present while waiting for goods to be loaded or unloaded onto the contract carrier's vehicle by other persons, as referred to in clause 6(5),

provided such time is spent in relation to a contract of carriage between the contract carrier and the principal contractor.

Whether:

(a) clause 2(a) of the Contract Determination applies to contracts of carriage from one place to another place, only one of which is within the County of Cumberland;

(b) clause 2(b) of the Contract Determination applies to contracts of carriage any part of which extended beyond the County of Cumberland; and/or

(c) clause 2(b) of the Contract Determination applies to contracts of carriage from one place to another place, where one of them is not within the area of a circle of 50 km radius from the starting place.

In relation to geographical limitations:

(a) clause 2(1)(a) of the Contract Determination does not apply to the transportation of goods under a contract of carriage from one place to another place, only one of which is within the County of Cumberland;

(b) clause 2(1)(b) of the Contract Determination applies to the transportation of goods any part of which extends beyond the County of Cumberland provided that the transportation is from one place to another place, both of which are within the area of a circle of radius 50 kms the centre of which is the starting place applicable to the Contract Carrier who is performing the contract of carriage.

Whether principal contractors are liable to make severance payments to contract carriers under clause 6 of the Transport Industry - Redundancy (State) Contract Determination (Redundancy Determination) in respect of any period of service of the contract carriers falling prior to the date on which the Redundancy Determination came into force and, if so, whether this is impermissible by reason of section 318 of the 1996 Act.

Principal contractors are liable to make severance payments to contract carriers under clause 6 of the Redundancy Determination in respect of any period of service of the contract carriers which occurs prior to the date on which that Redundancy Determination came into force and such liability is not affected by section 318 of the 1996 Act.

Whether or not contract carriers are entitled to payment for a lunchbreak under the Contract Determination.

Pursuant to the provisions of the Contract Determination, contract carriers are required to take a half hour lunchbreak on each day that work is performed for a principal contractor, such lunchbreak not counting as contract time for the purpose of clause 16 of the Contract Determination.

 

If you would like more information about this case or the application of the Contract Determination or the Redundancy Determination to your business, 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.

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