by processworxag
Share
by processworxag
Share
Recent Fair Work reforms are introducing new obligations across road transport contractual chains, creating broader compliance considerations for farms and agribusinesses engaging freight, cartage and logistics services.
While the new Fuel Cost Recovery Order is directed at road transport contractual chains, many farms and agribusinesses may be impacted without realising it, particularly where they:
- engage freight or logistics providers;
- receive delivered goods;
- subcontract transport or cartage services;
- operate within broader agricultural supply chains; or
- influence pricing and delivery arrangements.
What is the New Fair Work Fuel Cost Recovery Order?
The Order was introduced under recent Fair Work legislative reforms relating to road transport contractual chains.
It aims to ensure that increased fuel costs are not absorbed solely by transport operators at the bottom of a supply chain. Instead, fuel cost increases may need to be passed through contractual chains via pricing adjustments or other recovery mechanisms.
Importantly, the Order is not limited to direct transport businesses alone. Depending on how arrangements are structured, obligations may extend across multiple parties within a supply chain, including farms and agribusinesses engaging transport services.
Why Farms and Agribusinesses Should Review Transport Arrangements
This Order represents a significant shift in how responsibility may be allocated across supply chains. Historically, fuel price increases were often managed through fixed-rate commercial arrangements. The Order now introduces expectations around ongoing review and adjustment of rates where fuel costs increase.
For farms and agribusinesses, this may raise considerations around:
- Existing freight and logistics arrangements.
- Procurement and supplier relationships.
- Contractor and cartage arrangements.
- Contract structures and pricing models.
- Agricultural supply chain oversight.
Could Your Farm or Agribusiness Sit Within a Contractual Chain?
The Order may potentially impact:
- Grain and livestock operations.
- Produce suppliers.
- Logistics providers.
- Transport operators.
- Businesses engaging contractors or subcontractors within a transport chain.
Understanding Primary and Secondary Party Obligations
One of the more significant aspects of the Order is the introduction of obligations for both “primary” and “secondary” parties within a contractual chain.
A primary party is generally a business at the top of the chain procuring or arranging the transport service. For farms and agribusinesses, this may include businesses engaging freight providers, transport contractors or delivery arrangements as part of their operations.
Secondary parties are generally businesses or operators further down the chain involved in arranging, subcontracting or carrying out the transport work.
Obligations under the Order may extend across the chain, not just to the party physically performing the transport work. This means farms and agribusinesses that do not consider themselves part of the transport industry may still need to assess whether they sit within a contractual chain and what obligations may apply to them.
Understanding whether your business may be considered a primary or secondary party will be an important part of reviewing risk, contractual arrangements and compliance obligations moving forward.
What Should Farms and Agribusinesses Be Reviewing?
Farms and agribusinesses should consider whether they:
- rely on freight or logistics services;
- have fixed-price transport arrangements;
- subcontract delivery or cartage work;
- have visibility over supply chain arrangements; or
- may influence pricing within a contractual chain.
How ProcessWorxAg Can Support You
If you’re unsure whether these developments affect your farm or agribusiness, or want to proactively review your contractor arrangements, transport obligations or broader compliance considerations, the ProcessWorxAg team can help. Contact us on (08) 9316 9896 or get in touch here.
Follow ProcessWorxAg on LinkedIn, Facebook, Instagram, YouTube, and the Lets Chat HR & Safety Podcast to keep up with the latest HR and Safety news.
STAY IN THE LOOP
Subscribe to our free newsletter.
Leave A Comment
Time Off In Lieu (TOIL) is often used on farms as a practical way to manage long hours during busy periods like seeding or harvest. In theory it’s simple, work overtime now and take time off later. In practice however, it’s one of the most common areas where things go wrong. How Informal
Seeding is one of the busiest times on farm, often bringing long hours, changing conditions and additional workers on site. With so much happening, it can be easy to rush or skip inductions, but this is where risk increases significantly. A clear and consistent seeding safety induction process helps ensure every worker, regardless of
Managing staff during seeding is one of the biggest challenges for farms. With long hours and heavy workloads, it’s easy to focus purely on operations. However, your HR obligations as an employer do not change during seeding, in fact you may find yourself with more. Getting your HR foundations right before and during seeding
A recent Federal Court decision has significantly impacted pay compliance for employers in Australia, requiring a review of how employees are paid and recorded. While this decision only affects national system employers, it is still beneficial for state system employers to be aware of these developments, as it is common for the WA industrial relations
