JavaScript is required

Part 1: Introductory

01. Objectives

The objectives of this Code are -

  1. to provide for certain mandatory requirements concerning the engagement of contractors;
  2. to provide guidance to hirers and contractors on -
    1. conduct which is likely or unlikely to be unconscionable conduct within the meaning of sections 31 and 32 of the Act, including by providing examples of conduct that in the absence of any special circumstances is likely to be, or not to be, unconscionable conduct within the relevant industry context, and
    2. contract terms which are likely or unlikely to constitute unjust terms within the meaning of section 44(2) of the Act, including by providing examples of contract terms that in the absence of any special circumstances are likely to be, or not to be, unjust contract terms within the relevant industry context;
  3. to ensure a competitive and fair operating environment by promoting the following principles to guide business relations between hirers and contractors -
    1. parties to a contract should be able to operate their respective businesses without unfair business practices being used against them;
    2. contractors are entitled to have work performed to a satisfactory standard;
    3. parties should clearly communicate their expectations and requirements and any plans that may affect the other party's interests;
    4. hirers should offer and pay contractors remuneration that, considering the contract as a whole, the services to be performed and the general market for those series, enables the contractor to meet efficient operating expenses, receive a fair return for the contractor's own labour and a return on investment.

02. Interpretation

  1. In this Code – “contract” means a regulated contract within the meaning of section 3 of the Act; “the Act” means the Owner Drivers and Forestry Contractors Act 2005.
  2. Where the term “contractor” is used in this Code in a context that applies only to a natural person, the term refers –
    1. if the contractor is a natural person – to that person;
    2. if the contractor is a partnership –to any of the partners;
    3. if the contractor is a company –to an officer of the company.

Note: All terms used in this Code have the same meaning as provided by the Act unless the context requires otherwise.

Contractor is defined in section 3 of the Act to mean an owner driver, a haulage contractor or a harvesting contractor.

See in particular the following definitions in the Act— the definition of hirer in section 3, the definition of owner driver in section 4, the definition of haulage contractor in section 5 and the definition of harvesting contractor in section 6.

The definition of contractor is affected by the Owner Drivers and Forestry Contractors Regulations 2017. Those Regulations limit the definition of contractor, in relation to owner drivers carrying on a business of transporting goods other than forest products, to contractors that supply up to a maximum of 3 vehicles.

03. Application

This Code applies to hirers and owner drivers, harvesting contractors and haulage contractors.

Where a provision of this Code is preceded by the following heading– MANDATORY REQUIREMENT the provision must be complied with by the person or persons to which it applies.

Note: Section 30 of the Act provides that a person to whom a code of practice applies must comply with the code of practice to the extent that it imposes duties or obligations on the person or prohibits the person from engaging in certain conduct.

3. Part 5 contains provisions which include examples that relate to forestry contractors. Examples set out in any Part of this Code may be used as guidance in respect of the Act for hirers and all kinds of contractors, be they owner drivers, harvesting contractors or haulage contractors.

Updated

Back to top