On 16 April 2026, we published an article that detailed the Transport Workers’ Union of Australia and the Australian Road Transport Industrial Organisation’s joint application (MS2026/1) for an expedited road transport contractual chain order (RTCCO) to address the disruption to the fuel supply chains due to the difficulties in shipping through the Strait of Hormuz. Since publishing that article, the Fair Work Commission (FWC) has made the anticipated emergency RTCCO.
The RTCCO
On Monday, 20 April 2026, a Commission Expert Panel handed down its decision which outlined that it was satisfied that an RTCCO should be made due to the “surge in fuel prices caused by the disruption to international oil supplies is imposing an unfair and disproportionate burden on the most vulnerable participants in road transport contractual chains, namely self-employed workers (owner-drivers and road transport employee-like workers) and small businesses (small fleet operators) who, because of a lack of bargaining power, are unable to obtain cost recovery for the increased cost of fuel”.
The RTCCO made by the FWC applies from Tuesday, 21 April 2026. In summary, it requires parties in road transport contractual chains to review and adjust their rates on a fortnightly basis so that contractors and workers are compensated for increased fuel costs at the present time as compared to on or before 6 March 2026.
Who it covers
The RTCCO covers workers and businesses in road transport contractual chains performing work in the road transport industry, including:
- primary parties (eg. the party that requires road transport services such as manufacturers and suppliers);
- secondary parties (eg. the transport company or fleet owner that is the subsequent party to the contract);
- regulated businesses (eg. a business that hires contractors or digital platform operators in the road transport industry);
- regulated road transport contractors (eg. an independent road transport contractor that satisfies certain criteria); and
- road transport employee-like worker (eg. an employee-like worker who performs work in the road transport industry).
Who is excluded
Notably, the RTCCO doesn’t apply to an employee of a primary or secondary party. Further, the RTCCO also doesn’t apply to the cash-in-transit industry, or to primary parties operating in passenger transport (eg. motor vehicle, limousine, hire car, bus or coach) or deliveries for private or domestic purposes.
What to do
Under the RTCCO, each fortnight or twice per calendar month:
- primary parties must adjust the rate they pay to any other primary party for the performance of work in the road transport industry to ensure that the other primary party recovers the increased cost of fuel; and
- secondary parties must adjust the rate they pay to any other secondary party, regulated road transport contractor or road transport employee-like worker to ensure that these workers recover the increased cost of fuel.
How can adjustments be made
The parties can adjust rates by updating the rate or a component of the rate, introducing a fuel levy or directly reimbursing for any money spent on the increased cost of fuel.
Alternatively, primary and secondary parties may already have existing rise-and-fall rates that satisfy the RTCCO’s fuel cost requirements, including via:
- any relevant State or Territory industrial instrument;
- any relevant collective agreement; or
- any ongoing or special arrangement between persons in a road transport contractual chain.
If there are disputes between parties as to the appropriate adjustment to be made, the workers and businesses should try to resolve the matter between themselves. However, if a dispute cannot be resolved it can be taken to the FWC.
Timeframe and applicability
The RTCCO was made on an emergency basis and is intended only to apply from 21 April 2026 until the current price surge resolves. The RTCCO will cease to apply when weekly average diesel prices fall below $2 per litre, as measured in the weekly diesel price report published by the Australian Institute of Petroleum.
While in operation, the RTCCO overrides any minimum standard orders for regulated transport workers. After one month of operation, the FWC will review the RTCCO, and will then review it every three months after that.
It is important to note that failure to comply with the RTCCO can result in significant civil penalties for contraventions.
Contact us
If you are a road transport employer seeking advice on your obligations or the impact of the RTCCO on your contractual relationships, please contact a member of our Transport & Logistics, Workplace Relations, or Corporate & Commercial groups.
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