Why All Businesses Must Understand Their Delivery Labour Hire Laws

The driver in your branded truck might be the face of your business, but who they legally work for is one of the biggest hidden risks you carry. The pressure of regulatory changes and Chain of Responsibility laws only adds to the weight of managing logistics, inventory, and customer demands.

I’m Walter Scremin, CEO of Ontime Delivery Solutions. For over three decades, I’ve seen firsthand how smart companies get tangled in the finer points of labour hire law. A compliance breach is not an inconvenience; it is a direct threat to your bottom line.

In this guide, I’ll give you a clear roadmap to securing your operations. You will learn:

• The hidden legal and financial liabilities in your delivery network.
• A 3-step framework to audit your driver providers for compliance.
• A strategic alternative to traditional labour hire that reduces risk.

Let’s ensure your supply chain is built on a rock-solid foundation, not a legal landmine.

Uncovering the Hidden Liability in Your Delivery Operations

Business owners often believe that using a third-party provider for drivers outsources the risk. In Australia, this is a logical assumption but a catastrophic mistake.

Your business has significant exposure under Chain of Responsibility. This is a set of laws, enforced by the National Heavy Vehicle Regulator, that ensures accountability flows right up the supply chain to your door. You can be held accountable for breaches you did not directly commit.

The “Too Good To Be True” Pricing Trap

A labour hire quote that undercuts the market by 20% is not a win; it is the single biggest red flag you can encounter. Under a principle called “accessorial liability,” your business can be held legally responsible if your provider is caught underpaying drivers.

This isn’t a theoretical risk. A Fair Work Ombudsman investigation previously found 92% of audited providers in one sector were non-compliant. The real-world consequences are severe, with one Australian transport company fined $2.31 million for these types of breaches. These are business-ending events.

The Non-Negotiable Safety Duties You Share

Even though a provider employs the driver, your business shares a legal duty of care for their Work Health and Safety. This means you are legally obligated to provide a safe working environment for every person on your site.

This includes clear procedures at the loading dock and safe interaction with your forklifts. This is critical in an industry where work-related injuries cost the Australian economy $28.6 billion annually. For details, see the resources at Safe Work Australia.

Your Framework for Achieving Bulletproof Compliance

You need a clear plan to manage these risks. This framework provides a targeted, efficient process for due diligence with your transport partners.

“The biggest mistake I see is operators assuming their provider has everything covered. You have to verify it yourself. Trust is built on evidence, not assumptions.”

— Walter Scremin, CEO of Ontime Delivery Solutions

Step 1: Verify Your Provider’s Legal Standing

This is the foundational check. Answering “no” to any of these is an immediate stop sign.

• Licensing Check: In Victoria, Queensland, or the ACT, have you visually confirmed their valid licence on the public register? Engaging an unlicensed provider in Victoria can lead to fines of more than $600,000. Check via the LHA Victoria, LHL Queensland, and WorkSafe ACT.
• Insurance Check: Have you obtained and filed current copies of their Workers’ Compensation and Public Liability insurance policies?
• Compliance History: Have you asked them to provide a history of their compliance with all relevant workplace laws?

Step 2: Scrutinise Their Operational and Ethical Integrity

This step ensures they are not just compliant on paper but can deliver safely and reliably.

• Fair Pay Confirmation: Ask them directly how they ensure drivers are paid the correct award wage and superannuation, and require proof.
• Safety & Maintenance Review: Ask for documentation of their driver safety training and vehicle maintenance programs. This ensures their fleet won’t break down, leaving your time-critical auto parts delivery stranded.
• Pricing Justification: If a quote is low, challenge it. Ask for a cost breakdown to show how the price legally covers all wages, super, insurance, and running costs.

Step 3: Assess Your Own On-Site Safety Processes

Remember, responsibility is shared. This final step turns the focus inward.

• Induction Audit: Does your safety onboarding process treat third-party drivers with the same rigour as your own employees?
• Supervision Clarity: Who on your team is responsible for supervising how third-party drivers operate on your premises?
• Hazard Reporting: Is there a clear process for a driver to report a hazard on your site without fear of reprisal?

This documented due diligence is your first line of defence. Prioritise auditing one provider first to build momentum.