Document ID: chunk:federal_register_of_legislation:F2024L01574:reg:9
Version: federal_register_of_legislation:F2024L01574
Segment Type: reg
Provision Reference: reg 9
Character Range: 6957–9259

9  Show cause process before termination

Scope
 (1) This section applies if:
 (a) section 8 means that a road transport business is not required to give a regulated road transport contractor a warning before terminating a services contract; or
 (b) a road transport business has given a regulated road transport contractor a warning and the business considers, on reasonable grounds, that termination of a services contract is justified because:
 (i) the contractor has not, within a reasonable time, remedied the matters that were the subject of the warning; or
 (ii) the reason for giving the warning has continued or been repeated; or
 (iii) another issue, relating to the contractor's conduct or capacity, has arisen.

Opportunity to show cause
 (2) Before the road transport business terminates the services contract, the business must give the regulated road transport contractor an opportunity to show cause why the contract should not be terminated.
 (3) As part of the opportunity to show cause mentioned in subsection (2), the road transport business must provide sufficient information to enable a reasonable person in the position of the regulated road transport contractor to understand:
 (a) that the business proposes to terminate the services contract; and
 (b) the reason for the termination of the contract; and
 (c) that the contractor has the opportunity, within a specified period, to show cause why the business should not terminate the contract; and
 (d) what steps the business intends to take next (subject to the contractor's show cause response, if any).

Meeting with business's representative
 (4) The regulated road transport contractor may request the road transport business, within the period mentioned in paragraph (3)(c), to make a representative available to discuss the proposed termination of the contractor's services contract.
 (5) If the regulated road transport contractor makes such a request:
 (a) the road transport business must make the representative available for the discussion within a reasonable time; and
 (b) the representative must have knowledge about the reason for the proposed termination.
 (6) The person appointed by the regulated road transport contractor for support or representation (see section 12) may participate in the discussion.