Avoid costly sting of subbie terminations

National Road Transport Association

In today’s challenging market conditions with high fuel prices and ongoing labour shortages, it is more important than ever that business owners avoid the costly expense of unexpected payments. It pays to be across legal obligations when it comes to engaging – and terminating – workers.

Most businesses are aware of their obligations when it comes to employees but did you know that similar obligations may apply in relation to certain subcontractors?

Around the country, various “owner-driver” laws apply to the engagement of transport contractors. These laws may regulate your engagement of subcontractors, even if your business only deals with other limited liability companies.

For example, in some circumstances, your business may be legally required to:

  • pay subcontractors a prescribed minimum rate of payment (e.g. an hourly and/or per km rate);
  • provide subcontractors with a minimum period of notice of termination;
  • make redundancy payments (of up to 20 weeks pay) to subcontractors you no longer wish to engage; and/or
  • have a written contract with any subcontractors.

A failure to comply may lead to substantial back-payments, penalties and other associated costs.

NatRoad is helping Members understand any obligations that may apply to their business and will conduct a webinar at 11am AEDST on Tuesday 29 November.

Our Webinar Guest Speaker is Nigel Ward, CEO of Australian Business Lawyers & Advisors (ABLA). Nigel is one of Australia’s leading advocates and practitioners in employee and industrial relations, with more than 30 years of strategic business planning experience.

ABLA is a leading firm in Owner Driver management and negotiation, specialising in this complex field, having negotiated “owner-driver” arrangements across Australia. They also conduct specialised training courses on this subject. Their approach to all legal issues is from a ‘what’s best for your business perspective’.

If subcontractor termination provisions are of interest to your business, please click here to register for the Webinar.

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