Last week, the Taxi Services Commission (TSC) gazetted the final driver agreement implied conditions. You can read the full gazette notice (pages 1326 to 1329) here or read the overview on the TSC website here.
Below is an overview of the new conditions but is not comprehensive. For further information, refer to the full gazette.
All conditions will come in to effect on 30 Jun 2014, except for the insurance provisions which will be effective on 30 September 2014.
Now that these details are available, the VTA has commenced work on revising our current model bailment agreement which we will make available for use as soon as possible. The TSC will make a driver agreement template on their website, but will only include the implied conditions.
It is also important to clarify the use of the term 'driver agreement'. The way some are using the term 'driver agreement' is misleading. There is no 'driver agreement'. It is a plural term that applies to any arrangement between a driver and an operator. The legal construct of such relationships remains 'bailment'. The only thing to change is that such arrangements will, from June 30, have 'implied conditions'. The form of the agreement (written or otherwise) is not specified by the TSC.
55/45
The 55/45 mandated fare box split applies to all metered charges, but not to unmetered charges such as tolls, airport charges and electronic payment surcharges.
Record keeping
Any operator must keep records of the following and provide copies to drivers at the end of every calendar month:
- All payments made between driver and operator
- All shifts worked
- Gross fares/shift
- All surcharges charged to the passenger/shift (metered surcharges only, does not include electronic payments surcharges).
Maintenance
Operators are responsible for all operating and maintenance costs associated with the taxi.
Insurance
- The operator must insure the taxi with a policy providing cover of at least $5,000,000 which also:
~ is issued by a corporation authorised under the Insurance Act 1973;
~ be held in the operator's own name; and
~ not be held in any name other than the operator's.
- The operator is responsible for any applicable excess
- The TSC may request evidence of insurance at any time and must be provided to the driver upon request
- The operator must indemnify the driver for vehicle damage (including damage to the Taxi-cab) and for costs including legal costs associated with such vehicle damage.
Leave
Where the driver has worked regularly for the operator for 12 months or more (average of three shifts or more per week), the driver must be allowed to take a period of up to four weeks of unpaid leave on a pro rata basis.
Bond
- A total of $1,000 may be collected as a bond, which can be collected incrementally, and can be used:
~ In the event the driver withholds shift earnings; or
~ The taxi or any item of equipment is damaged due to the driver's conduct.
- The bond only need be held in a designated bank account and a receipt issued
- Disputes about use of the bond can be referred to the TSC's dispute resolution process
It is vital all taxi businesses are compliant with the the implied conditions as of 1 July 2014. Even if current agreements have not been updated, the implied conditions apply and will be enforced.