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New reforms to Forestry Contractors Act

According to the Andrews Labor Government it is making work fairer and safer for workers who are owner drivers or forestry contractors – including drivers using digital freight and delivery platforms. Source: Timberbiz

Minister for Industrial Relations Natalie Hutchins announced reforms, which will make it easier for the growing number of owner drivers and forestry contractors to get paid on time, be safe at work and support their businesses.

Owner drivers are effectively small businesses that own and operate one to three vehicles to deliver goods around Australia.

The changes announced are in response to a comprehensive review of the Owner Drivers and Forestry Contractors Act (ODFC Act), which found widespread non-compliance with the Act by hirers and brokers, putting workers’ safety, their incomes and their businesses at risk.

The review also had to respond to the fact that, when the ODFC Act was created over a decade ago, digital platforms such as Uber Freight, Uber Eats and Deliveroo didn’t exist.

The reforms respond to the emergence of these online platforms and strike a balance between supporting these growing independent small businesses and their needs as they compete with large businesses.

Under the proposed changes, for the first time, there will be education, enforcement and compliance for this industry within the newly announced Victorian Wage Inspectorate.

There will be penalties for not complying with the mandatory requirements of the Act, and infringements for failing to provide relevant rate and cost schedules, a written contract or a notice of termination or payment in lieu of notice.

Businesses will also be required to pay owner drivers within 30 days of receiving an invoice – reducing financial pressure for drivers.

These business owners will also have access to a fast, low cost and confidential binding dispute resolution process.

The Government will also remove a loophole that has denied some of these workers the right to take disputes to the Victorian Small Business Commission and the Victorian Civil and Administrative Tribunal.

The Victorian Budget 2018/19 provided $22 million for the Inspectorate, which includes up to $5.5 million to fund enforcement of these reforms.