A Guide for Taxi Drivers, Owner & Operators

Important information provides a brief overview of the important provisions of the Taxi Industry (Contract Drivers) Contract Determination 1984, which applies to Drivers in the Taxi Industry within the Greater Metropolitan Transport District.

The Determination provides for minimum terms and conditions of engagement between a taxi owner/operator and a driver of a taxi. Any taxi owner/operator engaging drivers must display a copy of the Taxi Industry (Contract Drivers) Determination 1984, in a conspicuous location at the place of business and/or depot. You can download the Determination here

The Determination applies to a contract of bailment (that is, the operation of) a taxi cab in the Greater Metropolitan Transport District as defined.

A copy of the Determination must be made available for drivers. Taxi owners/operators are required to display a copy of the Determination in a conspicuous place which is available to the driver/s. You can download the Determination here

This Determination applies when you drive a taxi cab in the Greater Metropolitan Transport District. Different provisions apply to driving taxi cabs in Newcastle, Wollongong and other country areas. For further information about driving taxi cabs in those areas, view the NSW Transport website.

No, they cannot. For further information or assistance, contact NSW Industrial Relations.

A bailee is an individual who holds a current NSW Taxi Driver Authority and takes a cab on bailment from the bailor (taxi cab owner/operator). Taking a cab on bailment means an agreement to drive the taxi cab under the conditions of the Contract Determination. A bailee can be a permanent or casual driver.

A permanent bailee is a driver who regularly takes a taxi cab on bailment from the same taxi owner/operator for:

  • five shifts per week; or
  • at least 220 night shifts per year; or
  • at least 230 day shifts per year.

Casual: A casual bailee is not a permanent driver and is not entitled to any sick, or annual leave.

Shift means the usage of a taxi cab by a driver for a period as agreed between you and the driver of at least nine (9) hours.

Day shift means a shift of at least nine (9) hours but not more than twelve (12) hours and at least 75(%) per cent of the hours are between 3 am and 3 pm.

Night shift means a shift of at least nine (9) hours but not more than twelve (12) hours and at least 75(%) per cent of the hours are between 3 pm and 3 am.

A bailee is a driver who hires the taxi from the taxi owner/operator for a shift as:

  • A permanent driver - who regularly takes a taxi on bailment from the same bailor for; - Five shifts per week; or - At least 220 night shifts per year; or - At least 230 day shifts per year

  • A casual driver - is not a permanent driver and is not entitled to any sick or annual leave.

A driver can be paid by a set percentage as a commission or pay a fixed amount from the takings to the taxi owner/operator and the driver keeps the balance remaining from chargeable fares.

Driver to Choose the Method of Payment:

There are two (2) methods of payment, as set out in Schedule I of the Determination.

Method I – Commission Industry experience will determine the commission percentage. First year permanent drivers are entitled to 45(%) per cent of all chargeable fares taken, including GST. Casual or second and subsequent year permanent drivers are entitled to 50(%) per cent of all chargeable fares taken, including GST. A driver can retain all tips.

Method II – Set Pay-in The driver pays you a fixed amount at the end of each shift. Maximum pay-in rates can be downloaded from the NSW Industrial Relations website. You must give an election form to any driver (set out in Schedule 1, Election form – Method of Payment for Taxi Drivers, of Part A of the Determination). The driver completes and signs the election form and returns it to you before commencement of the first shift and again within 90 days from the date of the first bailment. You must give the driver a receipted copy.

The driver chooses the payment method which can either be commission or a set pay-in. The driver confirms the payment method chosen and signs the Payment Election Form which is given to the taxi owner/operator. A driver should not be pressured or victimised by the taxi owner/operator when exercising their right to choose the payment method.

Yes, the taxi owner/operator must give you a signed and dated receipt for each payment you make within 14 days of the completion of the shift. The taxi owner/operator must also provide you with an invoice that is a GST Compliant Tax invoice no later than 14 days after the completion of each shift. The tax invoice can include more than one shift. The tax invoice must include the taxi owner/operator’s name, ABN, the driver’s name, pay in rate and total paid to the driver.

Yes, the taxi owner/operator must keep records for 6 years. These records include;

  • Payment Election Form
  • Driver log book forms
  • Copies of all invoices and receipts issued to the driver
  • Payments made by the taxi owner/operator for annual leave, sick leave and long service leave
  • Any monies deducted by the taxi owner/operator or any bonds paid by the driver to the taxi owner/operator.

The Determination provides for annual leave, sick leave and long service leave.

These entitlements cannot be offset against lower pay-in rates.

Annual leave

A permanent driver is entitled to annual leave on completion of at least 220 night shifts or 230 day shifts within a twelve month period or on termination of contract. Annual leave is to be calculated differently depending on the choice of method of payment.

 

Period of bailment

Method I

Method II

3-12 Months

 

On termination of contract

4/48 of the driver’s total entitlement from the chargeable fares.

The rate set at Item 3 Table 2 of the Determination

12 Months

5 weeks equal to 5/47 of the driver’s total entitlement from chargeable fares during those twelve months.

5 weeks paid at the rate set at Item 2 of Table 4 of the Determination.

Sick leave

In the first year of bailment a permanent driver is entitled to five days sick leave. Pro rata sick leave is not available until 55 shifts have been completed. In the second and subsequent years of bailment a driver is entitled to eight days sick leave. Untaken sick leave accumulates.

For Method I the average earnings per shift over the preceding three months are used to work out the rate of sick leave.

For Method II, the rate set at Item 4 of Table 2 of the Determination. Is a Driver entitled to Long Service Leave? Yes – a driver will be entitled to long service leave if the driver has worked for the same taxi owner/operator continuously for ten years, either as a permanent or a casual driver. In some circumstances the driver may be entitled to long service leave after 5 years. For more information contact NSW IR.

Yes - If you are classed as a permanent driver, then you are entitled to annual holidays on completion of at least 220 night shifts or 230 day shifts within a twelve month period or on termination of the contract. The annual leave payment is determined by the payment method the driver has chosen. (The payment methods are a set percentage as a commission or pay a fixed amount from the takings.)

Yes - If you are classed as a permanent driver then you are entitled to five days sick leave in the first year of the contract. Pro-rata sick leave is available on completion of 55 shifts. A driver will be entitled to eight days sick leave for each second and subsequent year of being a permanent driver. Payment for sick leave is determined by the payment method the driver elected. Any untaken sick leave accumulates.

Yes, you will be entitled to long service leave if you have worked for the same taxi owner/operator continuously for 10 years either as a permanent or casual driver. In some circumstances you may be entitled to long service leave after 5 years. For more information contact NSW Industrial Relations.

No, a taxi owner/operator must comply with the requirement of the Determination to provide annual leave and sick leave to a permanent driver even though the driver may have agreed to a pay-in lower than the maximum pay-in allowed.

The taxi owner/operator must give a permanent driver one week’s notice or payment in lieu of notice. No notice is required for a casual driver.

If the driver is required to wear a distinctive style of dress or uniform, the taxi owner/operator must provide and launder it free of cost to the driver.

Yes, permanent drivers can request annual leave and must not be victimised for requesting their entitlement in accordance with the Determination.

Failure to comply with the Determination is a breach of the Industrial Relations Act 1996. A breach can result in a civil penalty of up to $10,000 imposed on a taxi owner/operator.

To comply with industrial relations laws you must keep records.

You must generate and maintain copies of the following records for six years:

  1. GST compliant tax invoices with specified particulars as outlined below
  2. records relating to the calculation and payment of annual leave, sick leave, long service leave and payment for down time entitlements of drivers
  3. records relating to any monies deducted by you or bonds deposited with the owner/ operator by the driver
  4. all Schedule I elections forms
  5. all Schedule II Driver Log Books forms (as completed by the driver)
  6. Receipts for each payment made by the driver. Invoices You must provide the driver with a GST compliant tax invoice no later than 14 days after the completion of each shift. Each tax invoice can include more than one shift.

The tax invoice must include the following information:

a) name of the legal entity of the taxi owner/operator

b) the Australian Business Number (ABN) of the taxi owner/operator

c) name of the driver, and

d) for each shift, the date of the shift and the pay-in rate; and the total paid to the taxi owner/operator by the driver.

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If you have a question or require assistance, please contact our Industrial Relations Information Service on 13 16 28 or enquire online.

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The ACE unit provides information on industrial relations, employment and related matters to help improve the employment conditions experienced by Aboriginal and Torres Strait Islander people in NSW. If you have a question please contact 1300 361 968 or enquire online.

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