Wage Inspectorate Victoria has identified the key issues driving non-compliance with Victoria’s Owner Drivers and Forestry Contractors Act 2005 (the Act) in the last financial year, with 23% of all audits identifying at least one breach.
The Victorian regulator audited over 650 engagements in 2023-24 to check compliance with the Act, a 63% increase in audits from the previous financial year.
Specifically, these audits checked whether businesses engaging owner drivers and forestry contractors for a total of 30 days or more, or 30 days within a 3-month period, were providing them with:
- the prescribed information booklet
- the prescribed cost and rates schedule for their type of vehicle or equipment
- a written contract that includes minimum hours of work or income level, rates to be paid, and minimum notice to end the contract or payment in lieu.
The audits also checked whether the information booklet and cost and rates schedule were provided to prospective contractors at least three business days before they were engaged.
These requirements aim to improve the position of owner drivers who run small businesses transporting goods or harvesting or transporting forestry products.
Of those audits where breaches were identified:
- 38% found a breach of the Information Booklet provision
- 38% found a breach of the Rates and Cost Schedule provision
- 25% found a non-compliant contract.
While the majority of audits were conducted on transport, postal and warehousing businesses, the Wage Inspectorate also audited engagements in the forestry, retail, manufacturing, mining, construction, agriculture and wholesale industries.
The maximum penalty for these offences is $4,940 for body corporates and $988 for individuals.
Hirers and freight brokers should keep records that show they are meeting their obligations, because they may have to provide them to an authorised officer if they are chosen for an audit.
Quotes attributable to Commissioner of Wage Inspectorate Victoria Robert Hortle
“We’ve seen a slight improvement on last year’s compliance rate, but obviously 23% is still too high, so we’ll continue to work with industry to drive that rate down.”
“Giving contractors the prescribed information, enables them to accurately assess the proposed job and whether it’s worth their time and resources. It helps foster a healthy industry and it is a legal requirement.”
“Wage Inspectorate officers will travel the length and breadth of the state again in 2024-25, inspecting Victorian workplaces and taking appropriate enforcement action.”
