Transport

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Applicants are required to tell the Authority if any relevant person involved in the labour hire business intends to procure or provide transport in connection with the labour hire service. Essentially, the Authority wants to know about transport that the applicant has or will take steps to obtain, or to supply.

Applicants will also need to declare that if they intend to procure or provide transport, it will comply with all applicable laws relating to transport. This includes, but is not limited to:

  • Road Safety Act 1986 (Vic.), including the following regulations:
    • Road Safety (Drivers) Regulations 2021 (Vic.)
    • Road Safety (Vehicles) Regulations 2021 (Vic.)
    • Road Safety Road Rules 2017 (Vic.)
  • Heavy Vehicle National Law (Victoria).

You should ensure that that you are familiar with your obligations in relation to the provision of transport to workers, but in general, LHA will be looking to ensure that:

  • drivers of vehicles transporting workers are appropriately licensed for the class of vehicle they are operating
  • if the driver holds a foreign licence (other than New Zealand), that the licence is written in English (or accompanied by an English translation) and contains a full explanation of conditions and vehicle category — an international driving permit will satisfy this criteria
  • if the driver holds a permanent visa, less than 6 months has elapsed since the person arrived in Australia (where the visa was issued outside Australia) or less than 6 months has elapsed since the visa was issued (where issued while in Australia)
  • the vehicle and any trailers are registered and comply with mass and dimension limits
  • if the vehicle is covered by the Heavy Vehicle National Law (such as a bus or light bus), the vehicle and its operation comply with additional requirements including fatigue management measures.

A labour hire licence holder must not allow, permit or cause another person to drive a motor vehicle knowing that the other person does not hold a licence or permit that authorises the other person to drive the motor vehicle.

Transport industry scenarios

The examples provided on this page are for illustrative purposes only, and do not constitute legal advice. You should consider your particular circumstances when determining whether you require a labour hire licence. If you are unsure, you should seek legal advice.

Scenario 1

Truck Contractor Management Services Pty Ltd (TCMS) is engaged by a construction company (ACC) and sources owner drivers to transport excavated material. ACC engages and pays the drivers as independent contractors, while TCMS manages their contract performance.

Although the drivers provide their own vehicles, the arrangement between TCMS and ACC is principally for the recruitment and placement of individuals to perform labour for ACC, together with the management of their performance. TCMS is a labour hire provider providing contractor management services. ACC is a host, and the drivers are labour hire workers.

Scenario 2

An owner driver has two separate contracts:

  • Contract A with Ryan Transport Services (RTS), under which the owner driver personally provides transport services using their own vehicle, including operating the vehicle and delivering goods
  • Contract B with Marcelle’s Patisserie, under which the owner driver operates a small business, providing multiple vehicles, employing drivers, and managing delivery operations. The owner driver takes contractual responsibility for delivering the agreed transport outcomes.

Under both contracts, the arrangements are for the provision of transport services rather than the supply of labour. The owner driver provides significant non-labour inputs, including vehicles, and is responsible for delivering defined transport outcomes. Any drivers engaged under Contract B are employed as part of the owner driver’s business and are not supplied to a host.

Considering the arrangements as a whole, their character is not wholly or principally for the supply of labour. These are not labour hire arrangements.

Scenario 3

Fast Trucks Pty Ltd (Fast Trucks) engages Extra Truckers Pty Ltd (Extra Truckers) when it requires additional drivers. Extra Truckers pays each driver and supplies them to operate Fast Trucks’ vehicles. Extra Truckers does not provide significant non-labour inputs such as vehicles, route management, or responsibility for delivery outcomes.

The arrangement is wholly or principally for the supply of labour. Extra Truckers is a labour hire provider and is required to hold a labour hire licence. Fast Trucks is a host and must ensure it engages only a licensed provider.

Scenario 4

Black Trucks Pty Ltd (Black Trucks) engages ten owner drivers through Subbie Connect Pty Ltd (Subbie Connect). Subbie Connect connects owner drivers with transport companies and manages their contract performance.

The arrangement between Subbie Connect and Black Trucks is wholly or principally for the recruitment and placement of owner drivers to perform labour for Black Trucks, together with the management of their performance. Subbie Connect is a labour hire provider providing contractor management services. Black Trucks is a host and must ensure it engages a licensed provider.

The owner drivers remain subject to the protections and requirements applicable to owner drivers under the Owner Drivers and Forestry Contractors Act 2005 (Vic).