Uber has been forced to spell out its reasons for dumping drivers without warning in Australia, following complaints it has left people out of work with no explanation.

It comes as a Perth driver seeks damages from the Silicon Valley giant for terminating his contract without notice.

The company said its new deactivation policy - issued to Australian and New Zealand drivers - was a response to feedback from drivers who felt the company's process for removing people from its platform lacked transparency.

"It's clear from your feedback that we don't always do a good job working with you to explain our processes," Mike Abbott, general manager operations, Australia & New Zealand, said in a company blog post.