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Delivery Driver Contract Template

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delivery driver contract is used to structure a working relationship between a client and an independent contractor who transports goods. Whether it’s for the delivery of packages, cooked food, or groceries, this contract will help ensure that each party has a clear understanding of their responsibilities and is legally protected if problems arise. Among other provisions, the form contains terms for the driver’s compensation, delivery duties, tax liabilities, safety requirements, and legal status as an independent contractor.

Contents

What the Contract Includes

Compensation Terms

A delivery driver contract will need to outline terms for compensation. Payment is typically awarded on a per-hour or per-delivery basis, although another payment structure can be agreed on and included in the contract.

Delivery Responsibilities

The delivery driver’s duties will be stated in the contract’s service description. This portion of the document should explain the delivery type (e.g., pizza delivery, package delivery) and may relay other details about the work, including:

  • Weight lifting expectations
  • Whether the driver will load/unload the vehicle
  • Whether the driver will assemble/install goods
  • Terms for mileage documentation
  • GPS and electronic tracking procedures

Auto Insurance Requirements

The contract identifies the party responsible for maintaining insurance coverage on the delivery vehicle. In every case, the insurance policy should protect the vehicle while it’s being used for commercial purposes.

  • Note: Independent delivery drivers will likely use a personal vehicle instead of a vehicle owned and maintained by the client. In this case, insurance coverage is generally purchased by the driver.

Confidentiality Terms

Delivery drivers will gain access to the names and addresses of the client’s customers. The contract safeguards customer information by imposing strict confidentiality obligations on the delivery driver.

How to Use a Delivery Driver Contract

Before using a delivery driver contract, the client should determine whether the driver holds a valid driver’s license. It’s also essential to make sure the individual has the requisite credentials for the job, such as the following:

  • Clean driving record
  • Physical capacity to carry packages up and down stairs
  • Certification to handle the goods in question (if applicable)
  • Ability to operate a commercial vehicle (if transporting larger products)

After verifying the driver’s credentials, the two parties can negotiate terms (e.g., payment, delivery duties, contract length, etc.) and then execute the contract to create a formal working relationship.

Advantages of a Delivery Driver Contract

A delivery driver contract records the rights and duties of each party in a document that’s binding and legally enforceable. For the client, it allows them to pursue legal recourse if the driver fails to make deliveries, steals products, or pockets the money collected from customers.

For the driver, the contract provides written evidence of the payment they’re entitled to receive, reducing the potential of unpaid services.


Frequently Asked Questions

Can a delivery driver contract be terminated early?

The contract can be terminated early if the client or driver fails to uphold their contractual obligations. In that circumstance, the party seeking to terminate the agreement is usually required to give the other party a certain amount of advance written notice.

Should the contract include a tipping policy?

Companies that offer food delivery services may wish to include a tipping policy in their delivery driver service contracts.

  • Cash Tips – While the use of cash is becoming less and less popular with the rise of digital payment, the contract should still indicate how the driver will handle any cash tips they receive.

Note: Rules for tipping can be included in the “additional terms” section of the contract.

Is a commercial driver's license (CDL) required?

Depending on the gross vehicle weight rating (GVWR) of the automobile, the driver may need to obtain a Class A, Class B, or Class C commercial driver’s license.