About road transport contractual chains

A road transport contractual chain is a series of contracts or arrangements for the performance of work in the road transport industry. The chain starts with two parties agreeing to a primary contract or arrangement but the work is performed by either a:

• regulated road transport contractor  
• road transport employee-like worker under a services contract
• employee.  

At least one party to the primary contract or arrangement must be a constitutional corporation.  

Persons in a road transport contractual chain

A person in a road transport contractual chain can include a:

• party to the first contract or arrangement in the chain (called a primary party)  
• party to a subsequent contract or arrangement in the chain (called a secondary party), under which work is performed for the secondary party by a regulated road transport contractor or a road transport employee-like worker under a services contract, or by an employee  
• regulated road transport contractor who performs work under a services contract in the chain
• road transport employee-like worker who performs work under a services contract in the chain.

An individual is not in a road transport contractual chain:

• because a regulated road transport contractor or a road transport employee-like worker delivers something to them (or the individual consigns something for delivery) solely for private or domestic purposes
• in relation to work they perform as an employee
• in relation to work in the livestock industry.

Contractual chain order example

The graphic shows an example of a road transport contractual chain. This example is drawn from the Supplementary Explanatory Memorandum to the Fair Work Legislation Amendment (Closing Loopholes No. 2) Act 2024 at paragraph 103.  

This is an illustrative example only.

In this example the Commission makes an order applying to persons in a contractual chain.

The order requires contracts between parties to provide for payment within 30 calendar days of trip being completed.

The contractual chain is:

• Supermellon, who operates the distribution centres and stores in Victoria
• Supermellon contracts Hugo’s Haulage to deliver goods from distribution centre to stores
• Hugo’s Haulage subcontracts to Geoffrey Transport
• Geoffrey Transport subcontracts certain deliveries to Kelly who uses her own truck to collect goods from the distribution centre and deliver them to stores in the eastern part of regional Victoria.