Reduction in remuneration for carrying smaller loads
13 Reduction in remuneration for carrying smaller loads
Contracts generally provide for rates which are based upon the running costs of the type of vehicle provided, for example, a 2-tonne van. Where the contract between the parties permits, the contractor may agree to accept offers from the hirer for loads that could be carried in a smaller vehicle for a reduced rate of remuneration. Contractors may consider such occasional loads to be in their own interests, for example where the alternative is running the vehicle unloaded.
However, where the hirer regularly directs the contractor to undertake work for such reduced rates, the end result may be that the contractor is unable to cover the higher operating costs of the larger vehicle.
Guidance
In general, hirers should pay contractors at the rate agreed between them for the particular vehicle supplied by the contractor, regardless of whether the goods being transported could have been transported in a vehicle with a lesser carrying capacity.
Hirers should not—
direct contractors to undertake deliveries with a smaller load to be paid at a reduced rate; or
make special arrangements with customers for reduced rates (for example, supplying a 2-tonne van at the lower 1-tonne van rate), and direct the contractor to perform deliveries for that customer at the reduced rate.
Any regular direction that the contractor accept a reduced rate that results in the contractor being unable to meet the operating costs of the larger vehicle is likely to constitute unconscionable conduct within the meaning of section 31 of the Act.
Sch. 1 Pt 2 cl. 14 amended by S.R. No. 4/2021 reg. 13(1)(2).
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