Update on Contractor Driver Minimum Rates Order – Stay Overturned

Further to our Snippet on Monday, the Federal Court has now lifted the stay on the Contractor Driver Minimum Payments Road Safety Remuneration Order 2016 (Order).

The Full Federal Court dismissed NatRoad’s application for a stay pending the hearing of its substantive application as to whether the Road Safety Remuneration Tribunal made legal errors in rejecting industry calls to defer the commencement date of the Order. The substantive application is set down to be heard on 9 and 10 May 2016.

NatRoad has foreshadowed a potential High Court challenge to this decision and we also understand that other parties are mounting a case for a High Court legal challenge to the Order (on the basis that it is unconstitutional). Moreover, the Federal Government has said that it will, when Parliament resumes on 18 April, introduce legislation that proposes to freeze the new minimum payments for contractor drivers until next year.

While clearly the future of the Order is uncertain, for now, it is enforceable and parties are required to comply. If you require further advice, please contact us.

Joanna Bandara
M +61 434 926 919
T +61 3 9611 0196

Louise Houlihan
M +61 409 835 809
T +61 3 9611 0144