Fair Contract Terms for Taxi Drivers

Ms Mary Liew asked the Minister for Transport whether the Ministry will review (i) the role of taxis in our overall transport system; (ii) the contracts between operators and taxi drivers to determine a fair taxi hire rate; and (iii) the feasibility of implementing a mandatory rent-free day each week so that taxi drivers are entitled to a rest day.

Taxis play an important role in our transport system as they provide personalised, point-to-point transport to complement mass public transport such as trains and buses. We regulate service levels and have recently introduced taxi availability standards to ensure that they better fulfil this role. We will continue to monitor and make further adjustments where necessary.

The taxi rental agreement is a private, commercial contract between the taxi driver and his or her taxi company. Rental rates vary across and within companies, as they take into consideration the cost of buying, operating and maintaining the taxis. Companies also offer different rental rates and terms and conditions to compete for hirers. Potential hirers can therefore choose to rent from the company that offers the most competitive terms, and which best suit his or her needs.

As for the Member's question on mandatory rest days, taxi drivers have different preferences for schedules and working hours. We should not be prescriptive in mandating the number of rest days or rent-free days. All the taxi companies currently provide rent-free days, ranging from two to 60 days per year, as part of their benefit packages for their hirers. There is also flexibility in the current system as taxi hirers can make arrangements with relief drivers, should they wish to have more rest days.

That said, I would like to encourage all taxi companies to consider how they can be more flexible with their contracts to improve the welfare of their drivers.

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