Owner-drivers now have more protection against unfair termination of contracts under the new Road Transport Industry Termination Code that came into play from today.
Under the new laws, truckies will need to be given a “fair process” by road transport businesses before their contracts are terminated.
That includes giving the contractor a fair warning, and the chance to respond with reasons as to why the contract should not be terminated.
If the code was not complied with and the termination was found to be unfair, the Fair Work Commission (FWC) can now order a remedy – including reinstatement, subject to a six-month qualifying period.
Gig workers now also have similar protections under the Digital Labour Platform Code that also came into effect today.
As a result of the new code, gig workers can access the FWC for unfair deactivations and access reinstatement or compensation.
Prior to the activation, gig workers had been classed as ‘independent contractors’ restricting them from fighting unfair dismissals.
Both digital and trucking businesses will still be able to terminate a worker’s contract or deactivate a worker for a valid reason relating to their capacity or conduct. A digital or trucking business’ ability to let someone go if they engage in serious misconduct is not affected by these codes.
In a statement last year, Minister for Employment and Workplace Relations Murray Watt said these reforms were another step in the Albanese government’s reforms to ensure Australian workers have secure jobs and better pay.
“For a long time, digital platform and road transport businesses have been able to punt gig workers like rideshare and food delivery drivers off their apps without notice, or terminate truckies’ contracts without a fair process, effectively cutting off their income with the snap of their fingers,” Minister Watt said.
“If eligible gig workers and truckies believe they were unfairly treated, they will now have – for the first time – access to a simple, low-cost process to apply for reinstatement.
“The process is fair and transparent, and prioritises better communication. It’s not unreasonable to expect a review of a decision to essentially sack or suspend a gig worker to be made by a real person, not a robot.”
Transport Workers Union National Secretary Michael Kaine welcomed the start of the new laws today.
“These are huge steps forward for safety and dignity in road transport work, and we’re using every tool at our disposal to make this industry better with these new laws brought in by the Albanese government,” Kaine said.
“Combined with the applications we’ve made in parcel delivery, food delivery and for fairer contract terms, Australia is now leading the world with these reforms. With broad industry consultation now underway, these laws will save businesses and lives.”
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