Truck Driver Subcontractor Agreement Template for England and Wales

A truck driver subcontractor agreement is a legal document that sets out the terms of engagement between a logistics or haulage company and an independent truck driver in England and Wales. It records what work the driver will do, how they'll be paid, and who carries which risk, while keeping the arrangement compliant with commercial transport rules. Because the regulatory environment for commercial vehicle operations is strict, a clear agreement protects both your business and the subcontracted driver from legal and financial exposure.

What is a truck driver subcontractor agreement?

It's a business-to-business contract, not an employment contract. The driver operates as an independent contractor, invoices for completed work, and typically carries their own tax and national insurance responsibilities. The agreement is what evidences that genuine self-employed status, so getting the drafting right matters as much as the commercial terms.

When do you need this agreement?

You need it whenever your company engages an independent truck driver to move goods on your behalf. Common cases include:

• Expanding fleet capacity during peak seasons or busy periods of the year
• Covering specific routes where permanent staff aren't available
• Working with specialist drivers for particular cargo types (for example tanker, refrigerated or abnormal loads)
• Building ongoing relationships with owner-operators who supply their own vehicle

It's used by freight forwarders, distribution centres, construction firms needing material transport, and any org that subcontracts delivery work. Whether the driver is a sole individual working under their own name or a limited-company owner-driver, the same template sets out who does what.

What should the agreement cover?

A complete agreement usually addresses:

• Service scope, routes and the type of goods being carried
• Payment rates, invoicing procedures and who bears fuel, tolls and maintenance costs
• Insurance, including goods in transit, public liability and motor cover compliant with the Road Traffic Act 1988
• Working time, driving hours, rest periods and record-keeping under the Road Transport (Working Time) Regulations 2005
• Health and safety duties such as vehicle inspections and load securing
• The policy term, whether the engagement is a fixed period or a rolling arrangement, plus how either side ends it
• The driver's independent contractor status, so the arrangement isn't treated as disguised employment

Worked example

A distribution firm hires an owner-driver for a three-month contract covering regional deliveries. The agreement sets a per-mile rate, states the driver invoices monthly and covers their own fuel, requires goods-in-transit cover of a fixed value, and confirms the driver manages their own hours within legal limits. Because the driver uses their own truck, sets their working pattern and takes commercial risk, the contract supports a genuine self-employed engagement rather than employment.

How does it differ from an employment contract?

If you engage drivers directly as staff, an employment contract is the better fit.

Legal considerations in England and Wales

The agreement should confirm your business holds the correct operator licence under the Goods Vehicles (Licensing of Operators) Act 1995 and that the driver is properly authorised. It should reference the driver holding a valid vocational licence and Driver Certificate of Professional Competence where needed, and set vehicle standards such as MOT and regular inspections. To keep tax treatment clean, the terms should demonstrate a real business-to-business engagement rather than disguised employment under IR35. Rates, insurance thresholds and driving-hours rules move over time, so review your agreement before each new engagement in 2026 to keep it current. Genie's legal agent can review your finished draft against these points, flag risk, and give you the experience of a specialist without an in-house lawyer.