Contractor agreement for a courier

A same-day or on-demand courier accepts jobs as they come, on their own bike, van or car, and the arrangement is as self-employed as the courier's freedom to say no. The agreement has to make the job-by-job model work: how jobs are offered and accepted, what is paid for each and for the waiting around, who insures the vehicle and the goods, what the courier is liable for when a parcel is lost, and the substitution and freedom to work for others that keep the courier a contractor. I draft that agreement, for the company or for the courier, for a fixed fee of £595, delivered in five working days. HMRC's Check Employment Status for Tax tool is used to check status engagement by engagement; no document can guarantee the outcome.

Who this is for

Courier companies, same-day delivery businesses and dispatch platforms in England and Wales engaging self-employed couriers on bikes, motorcycles, cars and vans, and couriers who want an agreement that reflects how they work.

What matters in a courier's agreement

Jobs, acceptance and the courier's freedom to decline

The agreement should say that the company offers jobs through its app, its controller or by call, that the courier may accept or decline any job without consequence beyond not being paid for it, that there is no obligation on the company to offer jobs or on the courier to be available, that the courier may log off at any time, and that a job once accepted must be completed or reassigned with notice; a system that penalises declined jobs with fewer offers, lower rates or deactivation is control, and the agreement should not combine the words of freedom with the mechanics of a rota.

Pay per job, waiting time and expenses

The agreement should state the rate per job by distance band or by vehicle type, the rate for multi-drop and return jobs, waiting time beyond a stated period at collection or delivery, out-of-hours and bank holiday rates, the courier's responsibility for fuel, parking and congestion charges unless the job rate includes them, and the weekly or fortnightly invoicing and payment cycle with interest under the Late Payment of Commercial Debts (Interest) Act 1998; a self-billing arrangement with the courier's agreement is usual and should be documented.

The vehicle, insurance and goods in transit

The courier provides and maintains their own vehicle and holds the licence it needs, insures it for carriage of goods for hire and reward as section 143 of the Road Traffic Act 1988 requires for road use, and holds or is covered by goods in transit insurance; the agreement should say which policy covers the goods (the company's, with the courier's excess stated, or the courier's own), require proof of cover before the first job, and address cycle couriers, whose vehicle needs no motor cover but whose goods and liability do.

The customer's goods, proof of delivery and liability

The agreement should set the courier's obligations for the goods (checking at collection, safe carriage, delivery to the named person, proof of delivery with signature or photo, returns if undeliverable), the claims process, the courier's liability for loss or damage caused by their fault capped at a stated sum per job, and no liability where the goods were inadequately packed or the loss was outside the courier's control; the company's liability to its customer is under its own terms, and the courier should not be asked to carry it.

Status, substitution and working for others

A courier who may decline jobs, work for other companies and platforms at the same time, send a substitute who meets the company's requirements, and bears the costs and risks of their own vehicle has the features of self-employment; a courier required to work shifts, accept jobs, wear the company's uniform as a condition and work exclusively is likely to be a worker under section 230 of the Employment Rights Act 1996, with rights under the National Minimum Wage Act 1998 and the Working Time Regulations 1998. The agreement reflects the self-employed model and the company's systems should match it; branding can be offered rather than required.

Data, conduct and ending

The agreement should say what data the company collects from the courier and from the app (location during jobs, delivery records) and on what basis under the UK GDPR, require the courier to handle customers' and recipients' data only for the job, set conduct standards for dealing with customers and the public, provide for the company to stop offering jobs where a courier's conduct or insurance falls short, and run on short termination on notice by either party, without exclusivity or restrictions on working elsewhere.

What it costs

Consultancy or contractor agreement, £595. Drafted for your business. Five working days.

Template set for repeat use, £895. One master agreement plus a short-form schedule you can reuse for every engagement. Five working days.

Buying online forms the engagement on payment. The scope is what the consultancy and contractor agreements page describes, you accept the Terms of Service at checkout, and I email you within four working hours to get started. If you would rather ask something first, email me.

What you get

• A clear, express assignment of intellectual property to your business
• Confidentiality provisions that protect your business information
• Restrictive covenants drafted at a scope a court will uphold
• Clear treatment of status, so the arrangement is not accidentally something else
• Payment, deliverables and termination provisions that match how you work
• A reusable structure, so the next engagement costs you nothing

What is not included

• Employment status determinations and off-payroll working assessments, which need your accountant
• Tax advice
• Disputes with a contractor you have already engaged
• Immigration and right to work compliance

Questions I am often asked

If we rank couriers by acceptance rate, is that a problem?

It can be. A system that rewards accepting jobs and penalises declining them is control over whether the courier works, which points to worker status. The agreement describes a free choice to accept or decline, and the systems should respect it.

Who insures the parcels?

What the agreement says: the company's goods in transit policy with the courier's excess stated, or the courier's own cover. Either way the courier's motor policy must cover hire and reward, which is a separate requirement.

Can couriers work for our competitors?

A self-employed courier can, and an exclusivity requirement would point to employment. The agreement protects the company through the courier's obligations on each job, not by restricting who else they work for.

Related guidance and services

• Consultancy and contractor agreements, £595, the service this page describes
• Contract review, £495
• Employment contracts and handbooks, £595
• Contractor agreement for a delivery driver

This page is general guidance for businesses in England and Wales, not advice on your own circumstances. Last reviewed: October 2026. Email geoffrey@caesar.co.uk.