New Contract for Taxi Drivers

Saturday, June 5, 2010

A unified labour contract has been enforced on Abu Dhabi taxi driver. Officials from the Ministry of Labour (MOL) and the taxi regulatory authority TransAD have signed a Memorandum of Understanding on the new contract which ensures that all taxi drivers receive a basic salary of AED 800 (for earning a minum revenue of Dh 6,000), as well as accommodation, and a commission.

The contract is mandatory for all new taxi drvers recruited from June, but the existing 6,386 drivers in the capital will have the option of waiting until their original contract expires before they switch to the new one. Drivers of the older white and gold taxis will not be applicable for the new contract, due to being phased out.

Taxis will also no longer occpy parking spots in the city, following complaints from residents. The unified contract states that companies must provide accommodation for their drivers in designated areas outside the city. For the time being, TransAD has granted a grace period to some franchises considering their practical difficulties.

Some companies used to give just AED 500 as accommodation allowance, giving the freedom to drivers to stay wherever they want. Such practices will be stopped.


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