The Commission can establish minimum terms and conditions under Chapter 6, Part 2 of the IR Act for contracts of bailment or contracts of carriage.  Unless the Commission approves an exemption,⁶ the provisions made or varied through contract determinations are legally binding on all bailors, bailees, principal contractors and carriers to which the contract applies.⁷

Who can apply for a contract determination?

The general application form must be completed and submitted to the Registry by:

• a bailor or bailee under a contract of bailment;
• a principal contractor or carrier under a contract of carriage; or
• an association of employing contractors or any other association that represents the parties who can enter a contract of bailment or contract of carriage.

The application must be filed by email, post or in-person to the Registry.  The Commission may also initiate proceedings for a contract determination.⁸ It can also review, confirm, vary or revoke any exemptions in a contract determination.⁹

What can the Commission do?

Conference

The Commission will summon the parties, and any other person it considers relevant to the application, to a conference.  At the conference, the Commission will ascertain any legal issues, special circumstances or problems and take all reasonable steps to resolve the matter. 

If there is no resolution, the Commission may decide to:

• dismiss the application;
• proceed to hear the application;
• specify a time and place when the application can be heard; or
• adjourn the application for a period that it thinks fit. ¹⁰

Once the application is heard, the Commission may decide to dismiss the application at that point or make a contract determination.

Making a contract determination

Contracts of bailment

The Commission may make a contract determination with respect to any matter listed under s 312 of the IR Act, which includes:

• the remuneration of bailees;
• the amounts (if any) to be paid by the bailor when the bailee is required to attend at a place where the public vehicle is to be bailed to the bailee, but no such bailment takes place and for special duties such as the registration of a vehicle;
• annual or other holidays, sick leave and long service leave for the bailee or payments instead of any such leave;
• minimum or maximum number of hours per day, per week or for any longer period; and
• other conditions.

Contracts of carriage

The Commission can make a contract determination under s 313 of the IR Act with respect to remuneration of the carrier and any condition under such a contract. When making a contract determination the Commission will consider provisions relating to:

• rates of remuneration, including allowances or annual leave, public holidays, sick leave or long service leave;
• payment methods and periods, cost recovery, and any other entitlements that would otherwise apply to employees;
• record keeping;
• training and skill development, including relevant industry accreditation;
• adequate consultation and dispute resolution;
• access to proper representation by an association of contract carriers; and
• the attraction and retention of contract carriers.

A contract determination is binding on all bailors and bailees or all principal contractors and carriers who are parties to a contract of the class to which the determination relates.¹¹

In addition, subject to interference with reasonable commercial arrangements of the parties, a Presidential Member may inquire into any matter in a contractual chain¹² and make a contract determination in relation to remuneration and other conditions in the contractual chain.¹³  

The Commission may also make a contract determination to reinstate a contract of bailment or contract of carriage that has been terminated in accordance with s 314 of the IR Act.¹⁴

The Commission will decide when a contract determination will come into force,¹⁵ and it may decide to defer its operation wholly or in part as it thinks fit.  The contract determination can apply for a nominal term of no more than three years.¹⁶

^{6 Ibid s 321.; 7 Ibid s 317(1).; 8 Ibid s 318(3)(b).; 9 Ibid ss 320, 321(3).; 10 Ibid s 315(3).; 11 Ibid s 317; 12 A contractual chain is a chain or series of contracts of arrangements under which work is performed for a party to a contract or arrangement in the chain or series by a bailor or carrier under a contract to which Chapter 6 applies.; 13 Ibid s 313(3) and (4); 14 Ibid s 314.; 15 Ibid s 318(1).; 16 Ibid s 319(2)}