Trucking Subcontractor Agreement Template for Canada

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Key Requirements PROMPT example:

Trucking Subcontractor Agreement

"Need a Trucking Subcontractor Agreement for our cross-border operations between Ontario and Quebec, with special provisions for refrigerated cargo transport and compliance with both provinces' regulations, to be effective March 1, 2025."

Document background
The Trucking Subcontractor Agreement is essential for Canadian transportation companies engaging independent contractors for freight hauling services. This document is typically used when a trucking company needs to expand its capacity without adding employees or assets, instead partnering with independent operators who own or lease their equipment. The agreement ensures compliance with Canadian federal and provincial regulations while clearly defining the independent contractor relationship to avoid misclassification issues. It covers crucial aspects such as operational requirements, safety standards, insurance obligations, and payment terms, providing a legally sound framework for both parties. The document is particularly important given the complex regulatory environment in Canadian transportation, including hours of service regulations, safety standards, and cross-provincial operations requirements.
Suggested Sections

1. Parties: Identification of the contractor (trucking company) and subcontractor (independent trucker), including full legal names and addresses

2. Background: Context of the agreement, nature of the contractor's business, and purpose of engaging subcontractors

3. Definitions: Key terms used throughout the agreement including 'Services', 'Equipment', 'Territory', 'Rates', etc.

4. Scope of Services: Detailed description of transportation services to be provided by the subcontractor

5. Independent Contractor Relationship: Clear establishment of independent contractor status and not an employer-employee relationship

6. Equipment and Maintenance: Requirements for vehicle provision, maintenance standards, and compliance with safety regulations

7. Operating Requirements: Specific operational requirements including scheduling, routes, loading/unloading procedures

8. Compensation and Payment Terms: Payment rates, calculation methods, payment schedule, and expense responsibilities

9. Insurance Requirements: Mandatory insurance coverage types and minimum limits

10. Compliance with Laws: Obligation to comply with transportation regulations, safety standards, and labor laws

11. Term and Termination: Duration of agreement and conditions for termination by either party

12. Confidentiality: Protection of confidential information and trade secrets

13. Indemnification: Mutual indemnification obligations and liability allocation

14. Dispute Resolution: Process for resolving disputes between parties

15. General Provisions: Standard legal provisions including governing law, amendments, and notices

Optional Sections

1. Non-Compete: Restrictions on working with competitors, used when subcontractor has access to sensitive business information

2. Specialized Cargo Requirements: Additional requirements for handling special cargo types (e.g., hazardous materials, refrigerated goods)

3. Cross-Border Operations: Special provisions for international transport between Canada and US

4. Fleet Management System: Requirements for using specific tracking or management software

5. Fuel Surcharge Program: Terms for fuel cost adjustments, used when fuel prices are volatile

6. Performance Metrics: Specific KPIs and performance standards, used for larger or more sophisticated operations

7. Training Requirements: Specific training or certification requirements beyond standard qualifications

8. Subcontracting: Permission and terms for further subcontracting, if allowed

Suggested Schedules

1. Schedule A - Rate Schedule: Detailed breakdown of all rates, including base rates, mileage rates, and additional charges

2. Schedule B - Equipment Specifications: Detailed requirements for vehicles, including age, size, and equipment specifications

3. Schedule C - Operating Procedures: Detailed operational procedures, including loading/unloading protocols and safety requirements

4. Schedule D - Insurance Requirements: Detailed insurance specifications including types, amounts, and certificate requirements

5. Schedule E - Territory Map: Map and description of authorized operating territory

6. Appendix 1 - Safety Compliance Checklist: Checklist of required safety protocols and compliance requirements

7. Appendix 2 - Incident Reporting Forms: Standard forms for reporting accidents, damages, or other incidents

8. Appendix 3 - Contact Information: List of key contacts for both parties, including emergency contacts

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Transportation & Logistics

Manufacturing

Retail

Construction

Agriculture

Oil & Gas

Mining

Food & Beverage

E-commerce

Wholesale Distribution

Relevant Teams

Legal

Operations

Fleet Management

Risk Management

Compliance

Procurement

Logistics

Safety & Security

Contract Administration

Dispatch

Relevant Roles

Transportation Manager

Fleet Manager

Operations Director

Compliance Officer

Risk Manager

Contract Administrator

Logistics Coordinator

Safety Director

Chief Operating Officer

Procurement Manager

Legal Counsel

Independent Truck Owner-Operator

Dispatch Supervisor

Regional Transportation Manager

Industries
Motor Vehicle Transport Act: Federal legislation governing commercial vehicle operations across provincial boundaries and establishing safety standards for motor carriers
Commercial Vehicle Drivers Hours of Service Regulations: Federal regulations stipulating maximum driving hours, rest periods, and record-keeping requirements for commercial drivers
Transportation of Dangerous Goods Act: Federal law governing the transportation of hazardous materials and requiring specific safety protocols and certifications
Provincial Highway Traffic Acts: Provincial laws governing vehicle operation, weight restrictions, and road safety requirements specific to each province
Independent Contractors Act (various provinces): Provincial legislation defining independent contractor relationships and distinguishing them from employment relationships
National Safety Code for Motor Carriers: Federal safety standards including vehicle maintenance, driver qualifications, and safety management systems
Canada Labour Code: Federal labor legislation that may apply to determining worker classification and minimum standards
Provincial Workers' Compensation Acts: Provincial laws governing workplace injury coverage and insurance requirements
Environmental Protection Act: Federal environmental regulations affecting vehicle emissions and environmental compliance
Income Tax Act: Federal tax law governing independent contractor relationships and tax obligations
Provincial Insurance Acts: Provincial requirements for commercial vehicle insurance and liability coverage
Competition Act: Federal legislation governing fair competition and business practices in the transportation industry
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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