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Transport Industry Hours of Work: Employer Compliance Guide

Transport industry employer reviewing driver hours and work schedules at a logistics depot office

Quick Summary

Quick Summary

  • The Road Transport and Distribution Award 2020 [MA000038] caps ordinary hours at 38 per week (average) and 8 per day for day workers.
  • Ordinary hours must be worked between 6:30am and 5:30pm, Monday to Friday, unless the employee is on shiftwork.
  • Meal breaks of 30-60 minutes are required between 3.5 and 5.5 hours after starting. Missing this triggers penalty rates.
  • Overtime applies after 8 hours per day or 38 per week: 1.5x for first 2 hours, 2x after that.
  • The right to disconnect under clause 14A applies to all transport employers from 26 August 2025, including small businesses.

Understanding transport industry hours of work obligations is critical for employers in the road transport and distribution sector. The Road Transport and Distribution Award 2020 [MA000038] sets the minimum rules for how employers roster hours, schedule breaks, and calculate overtime. Getting this wrong can trigger Fair Work investigations, back-pay claims, and penalties exceeding $93,900 per serious contravention.

This guide breaks down the hours of work provisions every transport employer must follow under the award and the Fair Work Act 2009, including ordinary hours, breaks, overtime, penalty rates, and the right to disconnect.

Which Award Covers Transport Industry Employees?

The Road Transport and Distribution Award 2020 [MA000038] covers employers in road transport, distribution, warehousing, and logistics. This includes truck drivers, couriers, forklift drivers, and depot staff. Transport and logistics employment law advice can confirm your award coverage.

Ordinary Hours of Work Under the Road Transport Award

The award distinguishes between day workers and shiftworkers when setting ordinary hours.

Day Workers

Under clause 13, ordinary hours for day workers must not exceed 8 hours per day and must average 38 hours per week over the roster cycle. Ordinary hours must be worked between 6:30am and 5:30pm, Monday to Friday. Hours outside this span attract penalty rates unless the employee is engaged as a shiftworker.

The 8-hour daily maximum includes meal breaks. A worker rostered 7:00am to 3:30pm with a 30-minute break has worked 8 ordinary hours.

Shiftworkers

Shiftworkers may be rostered outside the 6:30am to 5:30pm span. Ordinary hours still average 38 per week, and shiftwork penalties under clause 22 apply to shifts finishing after 5:30pm or starting before 6:30am.

Break Entitlements for Transport Employees

Breaks are a commonly overlooked compliance area in transport operations, particularly for drivers on the road.

Meal Breaks

Under clause 16, employees must receive an unpaid meal break of 30 to 60 minutes, taken between 3.5 and 5.5 hours after starting work. If an employee works more than 5.5 hours without a meal break, all time worked after 5.5 hours until a meal break is taken is paid at 150% of the ordinary rate.

Rest Breaks

Paid rest breaks of 10 minutes are required for shifts over 6 hours. Drivers must also comply with fatigue management rest periods under heavy vehicle national law.

⚠️ Right to Disconnect Now Applies to All Transport Employers

From 26 August 2025, the right to disconnect applies to small business employers (fewer than 15 employees) in transport. You cannot penalise employees who refuse to respond to contact outside working hours, unless that refusal is unreasonable. Review your after-hours contact policies now.

Key Takeaways

Key Takeaways for Employers

  • Ordinary hours: 38 per week averaged over the roster cycle, max 8 hours per day for day workers.
  • Meal breaks: 30-60 minutes unpaid, between 3.5 and 5.5 hours after starting.
  • Overtime: 1.5x for first 2 hours, 2x after, plus a 20-minute paid break before 2+ hours overtime.
  • Weekend penalties: Saturday 1.5x, Sunday 2x the ordinary rate for day workers.
  • 2026 wage increase: 4.75% from 1 July 2026. Grade 1 rate is $26.87/hr (full-time), $33.59/hr (casual).
  • Record-keeping: 7 years retention under s.535. Burden of proof shifts to employer if records are incomplete.

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Overtime Provisions and Rates

Overtime applies when a transport employee works beyond 8 ordinary hours in a day or 38 hours in a week. The payroll compliance obligations require precise overtime calculation to avoid underpayment claims.

When Overtime Applies Rate
First 2 hours of overtime on a weekday 150% of ordinary rate
After 2 hours of overtime on a weekday 200% of ordinary rate
Saturday overtime (first 2 hours) 150% of ordinary rate
Saturday overtime (after 2 hours) 200% of ordinary rate
Sunday overtime (all hours) 200% of ordinary rate
Public holiday work 250% of ordinary rate

If an employee is required to work 2 or more hours of overtime immediately after ordinary hours, they must be allowed a paid 20-minute break before commencing overtime. This is frequently missed by employers and can result in back-pay claims if not rostered.

Penalty Rates for Weekend and Public Holiday Work

Transport employers who roster staff on weekends must apply penalty rates:

  • Saturday ordinary hours: 150% of the ordinary rate for day workers
  • Sunday ordinary hours: 200% of the ordinary rate for day workers
  • Public holidays: 250% of the ordinary rate (275% for shiftworkers)

Casual employees receive 25% loading on top of these penalties. Factor this into roster planning and pricing.

The Right to Disconnect in Transport

Clause 14A of the Road Transport Award gives effect to s.333M of the Fair Work Act 2009, which provides employees with the right to disconnect from work contact outside their ordinary working hours. This right applied to employers with 15 or more employees from 26 August 2024 and to small business employers (fewer than 15 employees) from 26 August 2025.

For transport employers, this means managers cannot require drivers to answer calls or emails outside rostered hours unless the refusal is unreasonable. Calling a driver about a safety issue during an on-call period may be reasonable; emailing admin updates at 10pm is not.

Employers should review their after-hours communication policies and ensure compliance with the HR best practice guidelines on the right to disconnect.

Hours of Work Record-Keeping Obligations Under the Fair Work Act

Under Fair Work Act 2009 s.535, transport employers must keep records of all hours worked, including start and finish times, overtime, and breaks, for 7 years. For drivers, this includes timesheets and fatigue management records.

If records are incomplete, s.557 shifts the burden of proof to the employer in underpayment disputes. The employer must disprove the claim, which is difficult without complete timesheets. Fair Work Inspectors can issue compliance and infringement notices.

The free employment document templates from Fair Work Centre include timesheet and roster templates for transport employers.

Compliance Checklist for Transport Employers

To stay compliant under the Road Transport Award:

  1. Verify award coverage: Confirm MA000038 applies and classify employees correctly.
  2. Update pay rates: Apply the 4.75% increase from 1 July 2026.
  3. Roster within limits: Keep day workers within 8 ordinary hours per day, 38 hours per week.
  4. Schedule breaks: Meal breaks of 30-60 minutes between 3.5 and 5.5 hours after starting.
  5. Calculate overtime: 1.5x for first 2 hours, 2x after that, with a 20-minute paid break before 2+ hours overtime.
  6. Apply weekend penalties: Saturday 1.5x, Sunday 2x, public holidays 2.5x.
  7. Update after-hours policies: Reflect the right to disconnect in dispatch arrangements.
  8. Maintain records: Keep timesheets for 7 years per s.535.

Fair Work Centre provides employment law advisory services for transport employers, with direct access to experienced employment lawyers.

Frequently Asked Questions

Under clause 13 of the Road Transport and Distribution Award 2020 [MA000038], ordinary hours for day workers must not exceed 8 hours per day and must average 38 hours per week over the roster cycle. Ordinary hours must be worked between 6:30am and 5:30pm, Monday to Friday. Shiftworkers average 38 per week but may be rostered across a broader span under clause 22.

Clause 16 provides for an unpaid meal break of 30 to 60 minutes, taken between 3.5 and 5.5 hours after starting work. If an employee works more than 5.5 hours without a meal break, time after 5.5 hours is paid at 150% of the ordinary rate. Paid rest breaks of 10 minutes are required for shifts over 6 hours. Drivers must also comply with fatigue management requirements under heavy vehicle national law.

Under clause 21, overtime applies after 8 ordinary hours in a day or 38 in a week. The rate is 150% for the first 2 hours and 200% after that. If working 2+ hours of overtime after ordinary hours, a paid 20-minute break must be provided first. Saturday overtime is 150% then 200%. Sunday overtime is 200% for all hours.

Yes. Clause 14A gives effect to s.333M of the Fair Work Act 2009. It applied to employers with 15+ employees from 26 August 2024 and to small business employers from 26 August 2025. Employees may refuse to respond to work contact outside ordinary hours unless the refusal is unreasonable. Employers cannot take adverse action for exercising this right.

The 2026 Annual Wage Review increased all award rates by 4.75% from 1 July 2026. A Grade 1 transport worker earns a minimum of $26.87/hr (full-time) or $33.59/hr (casual with 25% loading). Higher classifications increase proportionally. Employers must apply rates from the first full pay period on or after 1 July 2026.

Under clause 23, Saturday ordinary hours are paid at 150% and Sunday work at 200% for day workers. Public holidays are 250% (275% for shiftworkers). Casual employees receive 25% loading on top of these penalties. Rates differ between driving and non-driving streams.

Under s.535 of the Fair Work Act 2009, employers must keep records of hours worked, overtime, and breaks for 7 years. If records are incomplete, the burden of proof shifts to the employer under s.557. Fair Work Inspectors can issue compliance and infringement notices for breaches.

Day workers are capped at 8 ordinary hours per day. Shiftworkers may work longer shifts by agreement if 38 hours per week is averaged over the roster cycle. Hours beyond 8 per day are overtime at 1.5x for first 2 hours, 2x after. Long-distance operators must also comply with fatigue management under heavy vehicle national law.

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Disclaimer: Fair Work Centre is an independent private organisation providing advisory services to employers only. It is not associated with or authorised by the Fair Work Ombudsman, the Fair Work Commission, or any government authority. This article contains general information only and does not constitute legal advice. For advice specific to your circumstances, speak to one of our employment lawyers.
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