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Subcontractor driver agreement

£12
Word count
Template words
444
Reading time
Reading time
5 mins

A subcontractor driver agreement template setting out payment terms, legal obligations, insurance requirements, and independent contractor status.

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What is a Subcontractor driver agreement?

This Subcontractor Driver Agreement template sets out the legal framework for engaging self-employed delivery drivers in a compliant and professional manner.

It covers payment terms, vehicle and insurance requirements, confidentiality, data protection, and independent contractor status to reduce risk of employment misclassification.

Using this agreement helps logistics and transport businesses protect commercial interests, ensure regulatory compliance, and clearly define responsibilities between the parties.

Applicable legal jurisdictions
In which jurisdictions can this template be used?
Great Britain & NI (United Kingdom), Worldwide

Timings

Step-by-step action table for engaging a subcontractor driver

Step Description Responsibility Timing
1 Verify Eligibility: Confirm driving licence, insurance, right to work, and vehicle compliance. HR / Operations Before engagement
2 Issue Agreement: Provide subcontractor driver agreement for review and signature. HR / Management Prior to first assignment
3 Confirm Independent Status: Ensure payment structure and working practices align with subcontractor status. HR / Finance At onboarding
4 Commence Services: Assign deliveries and monitor compliance with service standards. Operations Ongoing
5 Review or Terminate: Continue arrangement, amend agreement, or terminate in accordance with notice provisions. Management As required

Compliance

United Kingdom
  • Employment Rights Act 1996 – worker status and employment classification risks
  • Road Traffic Act 1988 – licensing and vehicle compliance
  • UK GDPR and Data Protection Act 2018 – handling customer data
  • Health and Safety at Work Act 1974 – duty of care in transport operations
  • IR35 / off-payroll working rules – employment status considerations

Other territories

Consult your jurisdiction's employment legislation or labor laws to ensure compliance with the template. Review the language for local precision.

Subcontractor driver agreement

Subcontractor Driver Agreement

This Subcontractor Driver Agreement ("Agreement") is made and entered into on [Date], by and between:

Company:
[Company Name]
[Company Address]
[Company Contact Information]
(hereinafter referred to as the "Company")

Driver:
[Driver’s Full Name]
[Trading Name, if applicable]
[Driver’s Address]
[Contact Information]
(hereinafter referred to as the "Driver")

1. Scope of Services

The Driver agrees to provide delivery and transport services as instructed by the Company. Services may include collection, transportation, and delivery of goods in accordance with agreed schedules and service standards.

The Driver shall perform services as an independent subcontractor and not as an employee, worker, or agent of the Company.

2. Term of Agreement

This Agreement shall commence on [Start Date] and continue until terminated in accordance with Section 10.

3. Payment

The Company agrees to pay the Driver as follows:

Rate: [Per delivery / per mile / daily rate]

Payment Terms: Payment will be made [weekly/monthly] within [X] days of receipt of a valid invoice.

The Driver is responsible for all taxes, National Insurance contributions, and other statutory obligations arising from payments made under this Agreement.

4. Driver Obligations

The Driver agrees to:

  • Hold a valid driving licence appropriate for the vehicle class.
  • Maintain valid motor insurance for hire and reward.
  • Ensure the vehicle is roadworthy, taxed, MOT compliant, and properly maintained.
  • Comply with all road traffic laws and transport regulations.
  • Act professionally when representing the Company.

5. Confidentiality

The Driver may have access to commercially sensitive information, including customer details and delivery data. The Driver agrees to keep such information confidential during and after termination of this Agreement.

6. Data Protection

The Driver agrees to comply with the UK GDPR and Data Protection Act 2018 when handling personal data, including customer names, addresses, and contact details.

7. Equipment and Vehicle

The Driver shall provide their own vehicle and equipment unless otherwise agreed. The Company is not responsible for maintenance, fuel, repairs, or insurance costs.

8. Indemnity and Liability

The Driver shall indemnify the Company against claims arising from negligence, breach of road traffic laws, damage to goods caused by improper handling, or failure to comply with this Agreement.

9. Compliance with Laws

The Driver agrees to comply with all applicable legislation including road traffic regulations, transport safety laws, and employment status legislation.

10. Termination

Either party may terminate this Agreement by providing [30 days] written notice. Immediate termination may occur in cases of serious breach, loss of licence, or insurance invalidity.

11. Governing Law

This Agreement shall be governed by the laws of England and Wales.

Signatures

Company Representative: __________________________ Date: __________

Driver: __________________________ Date: __________

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subcontractor driver agreement