Transport

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

A Construction Company (ACC) is undertaking a large civil engineering project which requires the excavation and removal of material. ACC engages Truck Contractor Management Services Pty Ltd (TCMS) who engages a number of owner drivers to move excavated material from the construction site to a different location. TCMS manages the drivers to the requirements of ACC.

In this scenario:

• TCMS is providing contractor management services to ACC involving the placement of individuals to perform work in and as part of ACC’s business undertaking and is therefore a labour hire provider.
• ACC is a labour hire host.
• The owner drivers are labour hire workers.

Scenario 2

An owner driver owns and operates three vehicles. The owner driver enters into a contract with Ryan Transport Services (RTS) to provide transport services. The owner drives one of their vehicles to deliver goods for RTS under his contract with RTS (Contract A).

The owner driver also has a contract with Marcelle’s Patisserie to deliver their products (Contract B). The owner driver uses their other two vehicles to deliver products for Marcelle’s Patisserie. The owner driver engages employees to drive their other two vehicles for these deliveries. The owner driver is responsible for managing the contract with Marcelle’s Patisserie and the work that is performed. As the owner driver is providing and managing a contract associated with transport services to Marcelle’s Patisserie, would the owner driver be considered a labour hire provider under the LHL Act?

In this scenario:

Contract A

• The owner driver owns and operates three vehicles or less and is therefore covered by the Owner Drivers and Forestry Contractors Act 2005 (Vic) (ODFC Act).
• This means the owner driver gets some basic protections such as written information, contracts and access to a dispute resolution mechanism in their dealings with RTS.
• While the owner driver has been engaged by RTS under a regulated contract, the owner driver has not been recruited by another person and placed with RTS to perform work in and as part of the business of the host.
• There is no labour hire arrangement in place and therefore no requirement for RTS to use a licensed provider.

Contract B

• The owner driver owns and operates three vehicles or less and is therefore covered by the ODFC Act.
• This means the owner driver gets some basic protections such as written information, contracts and access to a dispute resolution mechanism in their dealings with Marcelle’s Patisserie.
• The owner driver engages two employees to drive their other two vehicles.
• The owner driver is not a labour hire provider because they are not recruiting drivers to work in and as part of the business or undertaking of Marcelle’s Patisserie.
• The driver is not a labour hire worker because the work being performed is not in and as part of the business or undertaking of Marcelle’s Patisserie.
• There is no labour hire arrangement in place and therefore no requirement for the owner driver to hold a labour hire licence.

Scenario 3

Fast Trucks Pty Ltd is a transport company and has its own fleet of 20 trucks, 20 permanent employees and 3 casual employees who are drivers. When Fast Trucks needs more drivers, it contacts Extra Truckers Pty Ltd who can supply drivers at short notice. Extra Truckers pay each driver for the performance of that work.

In this scenario:

• Extra Truckers is a labour hire provider as it is conducting a business of providing drivers to transport companies, and supplies drivers at short notice to work in and as part of Fast Trucks’ business.
• Fast Trucks is a host because Extra Truckers is providing them with labour hire services.
• The drivers are workers because each of them have an arrangement with Extra Truckers under which Extra Truckers supply the driver to other persons to perform work in and as part of the business or undertaking of the host, and Extra Truckers are obliged to pay each driver for the performance of that work.
• It does not matter if the work performed is under the control of Extra Truckers or Fast Trucks.
• Extra Truckers must have a labour hire licence and Fast trucks must ensure they only use a licensed provider.

Scenario 4

Black Trucks Pty Ltd is a transport company and has its own fleet of 10 trucks and has 10 direct employees who are drivers. When work increases Black Trucks engages 10 owner drivers (subbies) through Subbie Connect Pty Ltd – a business which connects owner drivers to transport companies and then manages the driver’s contract performance. All 10 owner drivers own and operate only one truck, which they use to transport goods, and are covered by the ODFC Act.

In this scenario:

• Subbie Connect is a labour hire provider as it is conducting a business of contractor management services and supplies owner drivers to work in and as part of Black Trucks business.
• Black Trucks is a host because Subbie Connect is providing them with labour hire services.
• The owner drivers are workers because they have an arrangement with Subbie Connect under which Subbie Connect recruits the owner drivers as an independent contractor to perform work in and as part of Black Trucks business.
• Subbie Connect continue to have a role managing the performance of the contract between the owner driver/independent contractor and the host, Black Trucks.
• Subbie Connect must have a labour hire licence and Black Trucks must ensure they only use a licensed provider.