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Delivering More Safety And Fairness To Owner Drivers

12 September 2019

Victorians who own and drive their own vehicles to earn a living will soon find work conditions safer and fairer, thanks to changes introduced by the Andrews Labor Government.

Amendments to the Owner Drivers and Forestry Contractors Act passed Parliament today, ensuring these workers – including drivers that work for delivery services such as UberEats and Deliveroo – are paid correctly, are safer at work and have all the information they need to run successful businesses.

Under the reforms, hirers and brokers face significant penalties if they breach their obligations to provide safe and fair conditions.

The changes will benefit owner operators that supply and operate one to three vehicles, including bicycles to deliver goods, and are contractors, not legal employees. Those that provide passenger freight services are not covered by the Act.

A recent review found many hirers and brokers were breaching the Act by not providing information about rates and costs to owner drivers or forestry contractors.

Contractual arrangements were also not being properly recorded, with owner operators left with little recourse to pursue legal action if they wanted to contest issues. This led to unreasonably high safety, income and business risks for owner operators in these industries.

Under the reforms, hirers and brokers now face penalties if they don’t comply with the Act. If they fail in their obligations, they face fines of more than $16,500 as a body corporate or nearly $10,000 as an individual.

Amendments have also been made to the dispute resolution procedure under the Act to allow the Victorian Small Business Commission to arrange arbitration if disagreements arise.

Wage Inspectorate Victoria will be responsible for monitoring compliance with the Act, increasing awareness about parties’ rights and responsibilities and issuing penalties for non-compliance.

The Wage Inspectorate was established last year to better protect workers under a range of Victorian industrial relations laws.

It will conduct a comprehensive information campaign before the laws come into force, to ensure that those affected are aware of their rights and obligations and know where they can find help.

Quotes attributable to Minister for Industrial Relations Tim Pallas

“Regulation in the industry simply wasn’t working – we’ve strengthened the Act so that those who do the wrong thing face serious penalties.”

“This is about ensuring hard-working owner drivers in the transport and forestry sector get the fair and safe working conditions they deserve.”

Reviewed 19 August 2020

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