Owner Driver Contracts: What Are The New Laws? (2025 Updated)

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Owner drivers and forestry contractors have a unique set of rights that must be respected in 2025. If you employ their services, ensure that every driver receives all the essential information prior to commencing a job, as required by current legislation.

A recent compliance review conducted by the Wage Inspectorate Victoria in early 2025 revealed that a significant number of drivers were not receiving the notices and documentation they are entitled to. This renewed scrutiny has spurred regulators to push for increased transparency and adherence to the protocols set out in the Owner Drivers and Forestry Contractor Act 2005, ensuring all parties are well-informed and compliant.

In this article, we’ll discuss the legal duties that apply to owner drivers, freight brokers, and hirers in 2025. We’ll explore:

What defines an owner driver
The difference between a contractor and an employee
Legal obligations under owner driver laws
Contract requirements
Record keeping obligations

What Is An Owner Driver?

The Owner Drivers and Forestry Contractor Act 2005 defines an owner driver as an individual who meets specific requirements. Typically, you must run a business transporting goods, own at least three vehicles, and personally operate one of those vehicles. The Act continues to serve as the benchmark for recognising the rights and obligations of owner drivers.

If you satisfy these criteria, you are likely deemed an owner driver. Similarly, if the above requirements apply in the context of harvesting and moving forest materials, you are considered a forestry contractor. For the sake of simplicity in this discussion, we will refer to both groups collectively as owner drivers.

How Do I Know If I’m A Contractor?

Owner drivers are typically engaged as contractors. The key difference is that an employee is an internal member of an organisation with ongoing responsibilities, whereas a contractor is hired externally for a specific period or project. In today’s gig economy, many owner drivers operate as independent contractors, managing their own taxes and business affairs.

However, the lines can sometimes blur between contractor and employee roles in day-to-day operations. If you’re unsure of your classification, read our detailed article outlining the distinctions between these roles.

What Are The Forestry Victoria Laws?

Recent compliance reviews in early 2025 have indicated that many hirers and freight brokers still fall short in meeting their legal obligations toward owner drivers. In response, a renewed campaign has been launched to raise awareness of the requirements outlined in the Owner Drivers and Forestry Contractor Act 2005. This campaign emphasises transparency and accountability in all contract arrangements.

The current regulations apply to job hires lasting 30 days or more within any three-month period. Under these laws, hirers and freight brokers must provide the following documents to drivers at least three days before work commences:

An information booklet
A schedule of rates
A written contract

These documents are crucial in helping drivers understand their rights and responsibilities from the outset. They serve as the foundation for a safe and transparent working relationship in the industry.

Failure to comply with these legal requirements can result in significant fines. Keeping fully informed and ensuring proper documentation is provided will help you avoid costly penalties.

Updated statistics in 2025 show that approximately 55% of owner drivers in Victoria speak a language other than English at home. This has led to a substantial push for providing translated versions of critical documents on the Victorian Government’s support website. If you are a hirer, it is essential to offer information in a language your drivers understand to promote clarity and compliance.

If you are a driver, you can request that your rights and responsibilities be explained in your preferred language, ensuring you have a clear understanding of your entitlements.

Ensuring that all parties are fully informed not only fosters stronger working relationships but also minimises the risk of disputes.

Hirers And Freight Brokers: What You Need To Do

As noted above, hirers and freight brokers have a legal obligation to provide all the necessary documentation to the owner drivers who work for them. Remember, if the engagement spans at least 30 days within a three-month period, all relevant documents must be provided at least three days before work starts.

Information Booklet

The Owner Drivers Information Booklet is a comprehensive resource updated for 2025. It covers essential topics including basic business practices, driver rights (such as permitted working hours and timely payment), road safety tips for extended driving periods, cost management strategies, and the latest tax information. Make sure you distribute this booklet to all your drivers.

This resource is vital for ensuring that every owner driver is aware of the latest industry standards and safety protocols.

Rates And Cost Schedules

The rates and cost schedules have been revised in 2025 to reflect current market conditions, including recent fuel price increases and updated operating costs. As there is no universal schedule—the applicable rates vary depending on your vehicle’s size and type—you can view the latest details on this webpage.

It is important to monitor these schedules closely, as they are periodically reviewed and adjusted, which may impact your overall cost structure.

Do I Need A Written Contract?

Yes, having a written contract is essential for compliance with Victorian regulations. In 2025, all contracts must be documented in writing—whether in physical or electronic format—to ensure that every party has access to an accurate and complete record of the agreed terms.

Your contract should clearly detail all aspects of the working arrangement, including:

Hours of work
Payment rates and methods
Termination clauses
Dispute resolution procedures
Options for contract extension
Expected standards of conduct

For further guidance on drafting a robust contract that meets 2025 legal requirements, consider our Contract Review and Redraft Service. This ensures your agreements are comprehensive and compliant.

What If I Want To End My Contract?

If you wish to end your contract, your agreement should include a termination clause that specifies the procedures and any liabilities incurred upon termination. Alternatively, you might formally conclude the agreement with a Deed Of Termination.

Before opting for early termination, consider any potential damages or unresolved obligations. It is essential to assess your situation carefully to determine whether ending the contract early is justified.

Should you require expert advice on terminating a contract, our legal team is ready to provide tailored solutions to meet your needs.

What Records Should I Keep?

Maintaining thorough records is critical to demonstrate compliance with all legal obligations. You should retain copies of the information booklet, written contract, and schedule of rates for every engagement.

If you are a driver, make sure you keep your personal copies of these documents. Freight brokers and hirers, on the other hand, must preserve a comprehensive record of all transactions, including contact details, payment records, and all correspondence with drivers. Digital records are acceptable, provided they are securely stored and easily accessible.

For a more detailed guide on record keeping requirements, click here to visit the Victorian Government’s support page.

For additional insights into maintaining comprehensive business records and ensuring regulatory compliance, you might find our article on Legal Requirements for Starting a Business very useful.

Key Takeaways

Whether you are an owner driver or an organisation hiring one, it is crucial to understand your obligations under the Owner Drivers and Forestry Contractor Act 2005 in 2025. This understanding is key to fostering compliance and protecting the rights of all involved parties.

To summarise:

If you operate a business transporting goods with at least three vehicles (one of which you operate), you qualify as an owner driver.
Owner drivers are typically engaged as contractors.
For engagements lasting 30 days or more within a three-month period, you must provide a written contract, information booklet, and schedule of rates at least three days before work begins.
All contracts must be documented in writing in either physical or electronic form.
Comprehensive records of all documentation, transactions, and communications must be maintained.

Additionally, be mindful of the growing shift toward digital record-keeping and multilingual support in 2025. Ensuring that all documentation is accessible and clearly understood by every party will help avoid disputes and foster smoother operations.

If you would like a consultation on owner driver legal obligations or need assistance reviewing your contracts, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.

Sapna Goundan

Sapna has completed a Bachelor of Arts/Laws. Since graduating, she's worked primarily in the field of legal research and writing, and she now writes for Sprintlaw.

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