The NSW Government is cracking down on the NSW taxi industry to ensure vulnerable drivers are paid their entitlements.

Treasurer and Minister for Industrial Relations Mike Baird today said recent successful NSW Industrial Relations (IR) prosecutions had revealed a high level of non-compliance within the taxi industry in relation to the payment of driver entitlements, particularly annual leave.

“It’s estimated that there are up to 8,000 taxi drivers within the greater metropolitan area of Sydney who hire a taxi from an owner to complete their shift,” said Mr Baird.

“Drivers and owners agree to a ‘pay in rate’ – that is, a charge the driver pays for using the taxi. Often a reduced rate is agreed, which is acceptable.

“But the practice of using this rate as an offset against paying drivers their entitlements is becoming more common across the industry. This is illegal and must be addressed.

“The NSW Taxi Industry is made up of a large number of workers who speak English as a second language. This makes them particularly vulnerable, as they are not always aware of their entitlements. Drivers are also reluctant to complain to a government agency about contract conditions for fear of losing their job.

“We want to protect these drivers, while at the same time ensuring that there is a level playing field across the industry. That is why NSW IR has today launched a two point plan to ramp up compliance across the industry,” said Mr Baird.

Mr Baird said this will include an education campaign involving extensive industry consultation, followed by an audit which will begin in early 2014.

Information sessions and webinars for owners and drivers will form part of the campaign and fact sheets and other resource material will be published in common community languages on the NSW IR website.

NSW IR has the jurisdiction to regulate Taxi Industry bailment agreements which fall under a contract determination. The Determination provides a framework for the operation of taxis between the owners and drivers and sets out driver entitlements. The Determination only applies to the metropolitan areas of greater Sydney.