What is a delivery driver contractor agreement?
Shops, restaurants, florists, pharmacies, wholesalers and local logistics firms often use self-employed drivers for their deliveries rather than hiring drivers as employees. A written contractor agreement makes the practical arrangements clear — how work is offered, what the driver is paid, whose vehicle is used, what insurance is needed — and sets the standards the business expects when the driver is at a customer's door.
This template describes what the driver delivers and where, and lets the driver accept or decline each offer of work. You set the rate (per delivery, per route, per hour, or per mile or kilometre), other charges such as failed-delivery or waiting-time fees, how often the driver invoices and how fast you pay. It covers the vehicle — the driver's own or one you supply, with an optional weekly charge — safe and lawful driving, the insurance the driver must hold, customer conduct and customer data, the proof of delivery you require and what happens when a delivery fails, responsibility for goods in the driver's care (with an optional cap), substitutes, and ending the agreement on notice or immediately for serious breaches.
- Best for
- Local businesses and delivery firms using self-employed drivers and couriers
- Signed by
- The company and the driver
- Pay options
- Per delivery, per route, per hour, per mile or per kilometre, plus optional extra charges
- Length
- About 3 pages, initialled on every page
When to Use a delivery driver contractor agreement
- A restaurant, bakery or florist using a local driver for same-day deliveries
- A pharmacy or grocery shop offering home delivery
- A wholesaler or distributor with owner-drivers on regular routes
- A last-mile courier company engaging drivers through its app
- A furniture or appliance retailer using a van driver for bulky items
What You Fill In
21 blanks, then the name and email of each person who signs: company, driver.
1 The parties
- Company name*
- Company address
- Driver's full name or business name*
- Driver address
2 The work
- Start date*
- What the driver delivers*
- Delivery area*
- How work is offered*
- Proof of delivery required*
3 Vehicle and insurance
- Vehicle* the Driver's own vehicle · a vehicle supplied by the Company
- Weekly charge for a Company vehicle
- Insurance the driver must hold*
4 Rates
- Currency*
- Rate*
- Paid* per completed delivery · per route · per hour logged on a route · per mile driven on a route · per kilometre driven on a route
- Other rates and charges
- Driver invoices* weekly · every two weeks · monthly
- Invoices paid within (days)*
5 Other terms
- Driver's liability for lost or damaged goods is capped at
- Notice to end the agreement (days)*
- Governing law*
6 Who signs
- Company signature and date, job title, initials on every page · The business engaging the driver.
- Driver signature and date, initials on every page · The driver, or the owner of the driver's delivery business.
What the delivery driver contractor agreement Covers
- The services
- Independent contractor
- Rates and invoicing
- Vehicle
- Insurance
- Customers and conduct
- Proof of delivery and failed deliveries
- Goods in the driver's care
- Substitutes
- Ending the agreement
- General
Using the delivery driver contractor agreement, step by step
1 Describe the work
Say what the driver will deliver and where it is collected from, the delivery area, and how work is offered — through your app, by message or as fixed routes. Set the proof of delivery you need, such as a photo or a signature.
2 Choose the vehicle and insurance
Pick the driver's own vehicle or one you supply; the agreement switches between the driver maintaining their own vehicle and you providing and maintaining yours. Add a weekly charge for a company vehicle only if you make one. Edit the insurance list to match what is required and usual where you operate.
3 Set the rates
Enter the rate and how it is calculated, any other rates or charges, how often the driver invoices, and how many days you have to pay.
4 Agree the risk and ending terms
Optionally cap the driver's liability for lost or damaged goods per incident. Choose the notice period and governing law, then add the driver and send — both of you sign and initial each page.
Tips Before You Send It
- Whether a driver is legally an independent contractor depends on how the work happens in practice — for example, whether they can decline work, work for others and use a substitute — not just on the contract. Take advice if you control their hours or routes closely.
- Ask for copies of the driver's licence and insurance certificates before the first delivery, and diary the renewal dates.
- Keep your app's delivery records; they make invoices easy to check and resolve disputes about failed deliveries.
- Tell drivers how to handle age-restricted, fragile or high-value items before they carry them.
Sign It Online In Minutes
- Fill in the blanks. Names, dates and amounts go straight into the agreement — the preview shows exactly where.
- Name who signs. Tick “This is me” for your own part. VergeHR builds the PDF with every signature, date and initials box on the right line, and you can check or move anything before sending.
- Send it. Each signer gets a secure link and signs from any device — no account needed. The signed PDF, with an audit trail and a Certificate of Completion, is filed in Files and emailed to everyone.
Delivery driver contractor agreement: frequently asked questions
Does this agreement make the driver self-employed?
No contract can decide that by itself. Courts and tax authorities look at how the relationship works in practice. The agreement is written for a genuinely independent driver — who can accept or decline work, work for others and send a substitute — and says the parties will review it if the way they work changes.
What insurance should a delivery driver have?
Usually motor insurance that covers business use for carrying goods for payment, plus goods-in-transit and public liability cover. Requirements vary by country and by what is carried, so the insurance list is a blank you can edit.
Can I deduct the cost of damaged goods from the driver's pay?
Only as the agreement allows and the law permits. The driver is liable only for loss caused by their negligence, dishonesty or breach, you can cap that per incident, and the agreement says no deductions are made except as agreed and lawful.
Can drivers sign on their phone?
Yes. Each driver gets a secure link and signs and initials on any device, without a VergeHR account. Electronic signatures are generally valid for ordinary contracts like this in the US (ESIGN Act and UETA), the UK, the EU (eIDAS) and Canada.