On 26 August 2024, the Fair Work Legislation Amendment (Closing Loopholes No.2) Act 2024 (Cth) inserted provisions in the Fair Work Act 2009 (Cth) relating to independent contractors who are engaged in the road transport industry.
The amendments empower the Fair Work Commission to deal with disputes over whether an eligible regulated road transport contractor’s service contract has been unfairly terminated.
The amendments also required the Minister for Employment and Workplace Relations make a Road Transport Industry Termination Code. On 5 December 2024, the Minister registered the Fair Work (Road Transport Industry Termination Code) Instrument 2024 (Cth).
Whether or not a road transport business has complied with the Code in terminating contractor’s service contract is a relevant consideration for the Fair Work Commission in the context of determining unfair termination applications by regulated road transport contractors. In order for a regulated road transport contractor to be eligible to make an unfair termination claim, they must have been performing work in the road transport industry under a services contract for a period of least six months. Because of this, the earliest date that such applications can be made is 26 February 2025.
The Code commences on 25 February 2025.
This Member Advice sets out the role of the Code in the unfair termination framework and provides an overview of the key elements. Ai Group has also prepared a brief video for members explaining the new jurisdiction.