Taxi Industry A guide for bailees and bailors Important information for bailees and Shift means the usage of a taxi cab by a bailors in the taxi industry within the bailee for a period as agreed between the Metropolitan Transport District prepared bailor and bailee of at least 9 hours. by the Office of Industrial Relations (OIR) Day shift means a shift of at least nine hours This fact sheet is designed to provide a brief but not more than twelve hours and at least overview of some of the provisions of the Taxi 75 per cent of the hours are between 3 am Industry (Contract Drivers) Contract and 3 pm. Determination, 1984 (the Determination). Night shift means a shift of at least nine hours You can download a copy of the but not more than twelve hours and at least Determination from the OIR website at 75 per cent of the hours are between 3 pm www.industrialrelations.nsw.gov.au and 3 am. Go to the NSW State Awards section on the What are the payment methods? website. There are two methods of payment, as set out Definitions in Schedule I of the Determination. They are: Bailor – the owner of the taxi. Method I – Commission Bailee – a driver who hires the taxi from the Industry experience will determine the owner for a shift. commission percentage. A first year permanent driver is entitled to Who does the Determination 45 per cent of all chargeable fares taken, apply to? including GST. The Determination applies to a contract of A casual or second and subsequent year bailment of a taxi cab in the Metropolitan permanent driver is entitled to 50 per cent of Transport District. all chargeable fares taken, including GST. Can the provisions be changed by A driver can retain tips. private agreement? Method II – Set Pay-in A bailee pays the bailor a fixed amount at the No. For more information or assistance, end of each shift. Maximum pay-in rates can contact the OIR. be downloaded from the OIR website. Permanent or casual? Who chooses? A permanent bailee is a driver who regularly takes a taxi cab on bailment from the same The driver. A bailor shall give to any bailee an bailor for: election form as set out in Schedule 1, Election form – Method of Payment for Taxi • five shifts per week; or Drivers, of Part A of the Determination. • at least 220 night shifts per year. The bailee completes and signs the election A casual bailee is not a permanent driver and form and returns it to the bailor, before is not entitled to any sick, annual or other commencing the first shift and again within 90 leave. www.industrialrelations.nsw.gov.au | 131 628 | September 2009 days from the date of the first bailment. The Period of Method I Method II bailor must give the bailee a receipted copy. bailment Are records required? 3-12 Months 4/48 of the The rate set at bailee’s total Item 3 Table 2 of Yes. To comply with industrial relations laws On termination entitlement from the the bailor must keep records. of contract Determination. the chargeable fares. What records must be kept? 12 Months 5 weeks equal to 5 weeks paid at The bailor must generate and maintain copies 5/47 of the the rate set at of the following records for six years: bailee’s total Item 2 of Table 2 entitlement from of the (1) GST compliant tax invoices with specified chargeable fares Determination. particulars as outlined below during those (2) records relating to the calculation and twelve months. payment of annual leave, sick leave, long service leave and payment for down time These entitlements cannot be offset against lower entitlements of bailees pay-in rates. (3) records relating to any monies deducted by the bailor or bonds deposited with the Sick leave bailor by the bailee In the first year of bailment a permanent (4) all Schedule I elections forms bailee is entitled to five days sick leave. Pro (5) all Schedule II Driver Log Books forms rata sick leave is not available until 55 shifts (as completed by the bailee) have been completed. In the second and (6) receipts for each payment made by the subsequent years of bailment a bailee is bailee. entitled to eight days sick leave. Untaken sick Invoices leave accumulates. The bailor must provide the bailee with a GST compliant tax invoice no later than 14 days Sick leave is paid differently depending on the after the completion of each shift. Each tax method of payment. For Method I the average invoice can include more than one shift. earnings per shift over the preceding three months are used to work out the rate of sick The tax invoice must include the following pay. For Method II, the rate set at Item 4 of information: Table 2 of the Determination. (a) name of the legal entity of the bailor Long service leave (b) the Australian Business Number (ABN) of the bailor Permanent bailees that have served (c) name of the bailee, and continuously with one bailor for at least five (d) for each shift, the date of the shift and the years, commencing on or after 1 February pay-in rate; and the total paid to the bailor 1972 are entitled to long service leave. Long by the bailee. service leave is calculated in accordance with the Long Service Leave Act 1955. For bailees operating under Method I a completed log book may constitute a tax How is a bailment terminated? invoice when signed by the bailor. For a permanent bailee, a bailor must give Are there provisions for leave in one week’s notice or payment in lieu of notice the Determination? is required. No notice is required for a casual bailee. Yes. The Determination provides for annual leave, sick leave and long service leave. Need more information? Annual leave To comply with industrial relations laws the A permanent bailee is entitled to annual leave bailor must display a copy of the on completion of at least 220 night shifts or Determination in a conspicuous place. For 230 shifts within a twelve month period or on further information you can: termination of contract. Annual leave is • call the OIR on 131 628 or calculated differently depending on the choice • visit www.industrialrelations.nsw.gov.au of method of payment.