Who are owner-drivers and hirers?
An owner-driver is someone who runs a business transporting goods in heavy vehicles supplied by them. You must regularly drive one of the heavy vehicles you own but you may use other operators to driver your other heavy vehicles.
An owner driver can be a natural person, company (except a publicly listed company) or partnership.
A hirer is a person or company (including a publicly listed company) who engages an owner-driver under an owner-driver contract.
Owner-driver Act and Code of Conduct
The Owner-Drivers (Contracts and Disputes) Act 2007 and Owner-Drivers (Contracts and Disputes) Regulations 2010 regulate contracts and dealings between owner-drivers and hirers.
Both the Act and Regulations, which includes the Code of Conduct, determine the legal rights and obligations for owner-drivers and hirers.
Important documents for owner-drivers
Owner-driver Information Booklet
The Owner-driver Information Booklet provides useful information to help owner-drivers successfully operate a business, including:
- Rights and obligations set out under the Act and Regulations including the Owner-Driver Code of Conduct
- Guidance for negotiating and terminating owner-driver contracts
- Safe and sustainable payment rates
- Minimising and resolving disputes.
Owner-driver Information Form
The owner-driver information form provides a summary of the Act and Code of Conduct requirements.
Guideline Rates
The Owner-driver Guideline Rates provide rates based on the typical operating costs in both per kilometre and per hour dollar amounts.
A hirer must provide the Information Form and Guideline Rates to an owner-driver before agreeing to an owner-driver contract, unless they owner-driver says they already have both documents.
Tools for understanding your business costs
Guideline Rates
The owner-driver guideline rates provide rates based on the typical operating costs in both per kilometre and per hour dollar amounts.
The pre-calculated rates cover both metropolitan and regional driving environments and 13 heavy vehicle and combination types.
Use the guideline rates as a starting point to work out a safe and sustainable rate for your business.
Cost calculator
Use the cost calculator to get a better understanding of the typical costs of running your business and work out a safe and sustainable pay rate.
Written contracts and templates
An owner-driver contract can be written, verbal or a combination of both.
Using written contracts provides clarity for both owner-drivers and hirers and helps to minimise disputes.
Model contract templates
Use our model contract template as a guide to understand and agree on contract terms.
You can modify the template terms to better suit your business needs.
Contract terms must still meet requirements of the Act, for example minimum notice periods.
The contract template is made up of 2 parts: the standard model contract and the schedule to the contract, which both the owner-driver and hirer must fill in.
The schedule sets out:
- who is party to the contract
- services to be provided under the contract
- approved drivers
- agreed payment rates
- period of the contract
- other matters such as any variations to the standard contract.
Minimum notice to terminate a contract
The minimum notice periods to terminate an owner-driver contract are:
- 90 days for all owner-driver contracts that are 90 days or more in duration including where a series of shorter duration contracts with substantially similar terms add up to 90 days or more.
- 7 days for all owner-driver contracts that are less than 90 days in duration.
A contract can be terminated immediately if the hirer pays an owner-driver the amount that would be payable under the contract for the equivalent of the minimum notice period minus 25%.
Notice of termination must be provided in writing and include the date the notice was given and the date termination is to take effect.
Negotiating contracts
Owner-drivers and hirers must negotiate contracts fairly and in good faith. This means being honest, open and fair when negotiating with one another.
Both parties should provide each other with a reasonable opportunity to:
- Meet and discuss proposed terms and conditions
- Present alternative offers that suit their own business needs
- Properly examine and consider offers
- Consult with business partners
- Seek legal, financial or other advice and assistance to properly understand terms and conditions.
The parties should also be clear, open and certain about whether a contract is likely to be renewed in the future.
Using a negotiating agent
Owner-drivers and hirers can use a negotiating agent to negotiate contract terms on their behalf.
You can choose any person or group to be your negotiating agent, such as your accountant, an industry body, the Transport Workers’ Union, a lawyer, or another owner driver.
A negotiating agent must be appointed in writing and a copy of that written appointment must be provided to the other party before negotiations start.
The other party cannot refuse to negotiate with a duly appointed negotiating agent.
A negotiating agent is bound by the same legal requirements as the party that they represent.
Negotiating as a group
A group of owner-drivers can jointly negotiate (collectively bargain) with a hirer when making, varying or terminating contracts.
Joint negotiations for 2 or more owner-drivers’ contracts may:
- deal with all of the terms and conditions of those contracts; or
- deal with some of the terms and conditions of those contracts, with the remaining terms and conditions to be negotiated individually.
Joint negotiations do not have to result with all included owner-drivers getting the same terms and conditions.
Find more useful information about contract negotiation in the Owner-drivers Information Booklet.
Dealing with a dispute
If a dispute arises between you and a hirer, it is important to:
- Advise the other party of your concerns promptly in writing
- Tell the other party what you would like to happen to resolve the dispute
- Work together to find a solution
- Allow sufficient time to resolve the issue/s
- Always act in a calm and professional manner
- Continue working as normal while the dispute is being resolved.
If you cannot resolve the dispute, you can:
- Lodge a complaint with Wageline
- Refer the matter the Road Freight Transport Industry Tribunal.
However, check your contract as it may have a process to follow before lodging a formal complaint or making an application to the Tribunal.
The Road Freight Transport Industry Tribunal provides owner-drivers with a low cost resolution process and can deal with disputes arising under:
- Owner-Drivers (Contracts and Disputes) Act 2007
- Owner-driver code of conduct breaches
- terms of an owner-driver contract, including payment disputes.
Find out more about the Road Freight Transport Industry Tribunal dispute resolution process.
Frequently asked questions
Find answers to common questions about the owner-driver code of conduct, contracts and disputes.