Road Transport and Distribution Award 2020 - A Simple Guide for Your Business

Apr 20

Award Coverage and Key Exclusions

This Award covers employers throughout Australia involved in the road transport and distribution of goods, materials, and livestock. This includes warehousing (distribution facilities), wholesale meat and milk delivery, and vehicle relocation.

Important note : This Award does not cover Long Distance Operations. If your drivers are engaged in "long distance operations" as defined by the Road Transport (Long Distance Operations) Award 2020, that Award takes precedence.

Common Roles and Classifications

Classifications are sorted into 2 categories: Warehouse/Distribution and Transport. A driver’s pay grade is primarily determined by the type and weight of the vehicle they operate.

Standard Roles: Includes van and truck drivers, couriers (including those on foot or bike), forklift operators, loaders, and aerodrome attendants.

Technical Triggers: Pay grades change based on the vehicle's mass.

o GVM (Gross Vehicle Mass): Applied to rigid trucks. For example, a driver of a rigid vehicle not exceeding 4.5 tonnes GVM is a Grade 2, while exceeding 13.9 tonnes moves them to Grade 4.

o GCM (Gross Combination Mass): Applied to articulated vehicles (prime movers with trailers). These typically fall into higher grades (Grades 5 through 10).

Minimum Engagement

Both part-time and casual employees must be paid for at least 4 hours of work for each shift. If a casual driver completes a delivery "run" in 90 minutes, you must still pay them for 4 hours.

Hours of Work and Start Times

Ordinary hours are capped at an average of 38 per week. For most employees, the "ordinary" window is Monday to Friday, 5:30 am to 6:30 pm.

Fixed Start Times: You must fix a regular starting time for each employee.
Notice of Change: Changing an employee’s start time requires at least one week’s notice for any variation.

Meal Breaks

This Award is incredibly strict regarding break "windows." Failure to manage these correctly is one of the most common causes of unintentional underpayment.

The Window: An unpaid meal break (30–60 minutes) must start no earlier than 3.5 hours and no later than 5.5 hours after the employee's fixed starting time.
The Penalty: If the employee does not get their break within this window, you must pay them double time (200%) from the moment the break was due until they are actually released for a meal.
Compliance Advice: "Being too busy" is not a legal defence. Only "unforeseen extraordinary circumstances" allow for a delay.

Shiftwork

When operations require work outside standard daytime hours, these shifts attract loadings to compensate for the social impact on the employee:

Afternoon Shift: Finishes after 6:30 pm (but before 12:30 am). Pays an extra 17.5%.
Night Shift: Finishes after 12:30 am (but before 8:30 am). Pays an extra 30%.

Pay, Penalties, and the Junior Rate Trap

Minimum pay is set by Grades 1 to 10. While pay generally increases with vehicle weight and complexity, there is a specific legal trap regarding younger workers.

The Junior Driver Trap: While the Award allows junior percentages for some roles, any employee 18 years or older who is in sole charge of a motor vehicle must be paid the full adult rate. Paying an 18-year-old a "junior rate" to drive a delivery van is a breach of the Award.
Weekend Penalties: Ordinary hours on Saturday are paid at 150% (time and a half). Sunday work is paid at 200% (double time).

Higher Duties Rule

In transport, duties often fluctuate. The Award includes a "Higher Duties" rule: If an employee performs work at a higher grade for any part of a day, they must be paid at that higher rate for the entire day.

Common Risk Traps

Incorrect Break Windows: Paying standard rates when the 200% "missed break" penalty has been triggered.
The 4-Hour Rule: Underpaying casuals who are sent home early due to lack of work.
Junior Driver Rates : Paying an 18+ driver a junior percentage instead of the full adult rate.
Weight Confusion: Failing to distinguish between GVM (Rigid) and GCM (Articulated), leading to incorrect grading.
Money Handling: Failing to pay the weekly allowance to drivers who collect cash from customers.
Part Time Agreements: Changing a part-timer's days without a written variation signed by both parties.

Practical Tips for Staying Compliant

Mandatory Access: You are legally required to ensure a copy of the Award and the National Employment Standards (NES) are available to all staff (digitally or on a noticeboard).

Audit Your Fleet: Maintain a register of the GVM and GCM for every vehicle in your fleet and map these directly to the driver classifications.

Document Everything: Ensure all part-time hours and any variations to work patterns are captured in writing before the work is performed.

The Road Transport and Distribution Award 2020 is a complex but manageable framework. By understanding the triggers for higher pay - such as vehicle weight, shift times, and break windows, you protect your business from the "hidden" costs of non-compliance. Need a hand? FiveSeven can help.

The information above forms part of our Understanding Your Award series and provides a high-level overview only. Further obligations may apply depending on your business and workforce. This Information is current at the time of publication. Workplace laws and awards may change.

The information above forms part of our Understanding Your Award series and provides a high-level overview only. Further obligations may apply depending on your business and workforce. This Information is current at the time of publication Jan 2026. Workplace laws and awards may change.