Written Reply to Parliamentary Question on Guidelines for Early-Contract Termination Clauses for Taxicabs and Private-Hire Cars Due to Unforeseen Circumstances

Assoc Prof Jamus Jerome Lim asked the Minister for Transport whether the Ministry issues guidelines or regulates acceptable conditions for early-contract termination clauses for taxicabs and private-hire cars especially for unforeseen circumstances such as health-related causes.

Reply by Minister for Transport S Iswaran:

1.     The Land Transport Authority (LTA) does not set guidelines on conditions for early contract termination for taxi and private hire car (PHC) rentals, which are commercially determined as part of agreements between rental companies and drivers. Taxi/PHC rental companies may offer different packages and contracts to cater to the different needs and preferences of drivers. We understand that rental companies do review early terminations on a case-by-case basis, and we encourage them to continue doing so in a compassionate manner. Drivers who need to terminate their contracts early due to unforeseen circumstances are encouraged to discuss possible options with their respective rental companies. LTA is also working with the driver associations to help drivers better understand rental contract terms and the risks involved.