Engaging drivers vs subcontracting
It is the contractor's responsibility to recruit and employ or subcontract a suitably qualified driver, including relief drivers, when providing transport services to the ASTP.
The contractor will need to carefully decide if they wish to employ drivers or request to subcontract.
Contractors may negotiate with drivers or subcontractors on vehicle ownership provided that there is a formal agreement in place that has been accepted by both parties.
The ASTP may request statements from the contractor confirming compliance with Workers Compensation, Payroll Tax and Industrial Relations Acts.
Contractors are responsible (Clause 11.2 of the Contract Agreement (PDF 1063.54KB)) for ensuring drivers have the necessary skills and competencies in providing services to the ASTP and meeting the contractual requirements for service delivery.
These responsibilities include ensuring drivers:
- have a valid Working With Children Check (WWCC) number
- possess English language skills sufficient for the effective delivery of ASTP services
- receive clearance from the ASTP before commencing work
- are medically fit to hold a driver licence
- meet a high standard of professionalism
- maintain a good driving record.
Key differences between drivers and subcontractors
Becoming a driver for the ASTP is a competitive process and at the discretion of the department. The ASTP does not employ drivers directly.
- A driver must receive appropriate training and relevant information to assist in their role.
- A driver must have a valid tax file number.
- A driver is engaged as an employee of a contractor and paid wages and allowances in accordance with a relevant NSW award.
- Payment of wages to the driver is made weekly, fortnightly or monthly.
- All on-costs are paid by the contractor in relation to holiday pay or allowances, sick leave, workers compensation.
- Superannuation entitlements are paid into the employee's approved superannuation fund.
- A driver's taxation is paid by the contractor on behalf of the driver and remitted to the Australian Tax Office.
Find out more about the driver application process.
Subcontracting raises risk for ASTP contractors. Careful consideration is needed to ensure all the required legal and contractual obligations can be met.
Approval to subcontract must be obtained from the ASTP. The ASTP reserves the right in its absolute discretion, not to approve an application for subcontracting.
- Contractors may, with the approval of the ASTP, and in limited circumstances, subcontract services.
- The ASTP must approve subcontracting arrangements prior to the commencement of services.
- The subcontractor must hold an Australian Business Number (ABN).
- A contractor cannot subcontract to more than one level (does not apply to taxi bailee drivers, clause 25.4 of the Contract Agreement).
- The contractor has ultimate responsibility over runs assigned to them, and must ensure the subcontractor is aware and complies with all obligations in accordance with the Contract Agreement.
- Approval to subcontract does not relieve the contractor from obligations under the Contract Agreement.
- ASTP may withdraw its consent to subcontract if the requirements of the Contract Agreement are not being met.
- Where the subcontractor has employees, the contractor is required to obtain and retain for their records a statement from their subcontractors to comply with s175B of the Workers Compensation Act 1987, schedule 2 Part 5 Payroll Tax Act 2007, and s127 Industrial Relations Act 1996.
- Payments are made to subcontractors each month as per the subcontract agreement (DOC 275KB).
Find out more about the subcontracting application process.