HGV/Lorry Driver Contractor Agreement (UK)
This HGV/Lorry Driver Contractor Agreement (the “Agreement”) is entered into on [Agreement Date] between:
[Haulier Name], [Haulier Type], with its registered or principal place of business at [Haulier Address], [Haulier City], [Haulier County], [Haulier Postcode], England and Wales (hereinafter referred to as the “Haulier”, Operator’s Licence No. [O-Licence Number]); and
[Driver Name], a self-employed contractor, of [Driver Address], [Driver City], [Driver County], [Driver Postcode], England (National Insurance No. [Driver NI Number]) (hereinafter referred to as the “Driver”).
BACKGROUND
The Haulier wishes to engage the Driver as a self-employed independent contractor to provide HGV driving and related logistics services. The Parties intend that this Agreement shall not create an employment relationship, and that the Driver shall at all times remain self-employed for the purposes of employment law, income tax, and National Insurance contributions. The Parties acknowledge their respective obligations under the Road Transport (Working Time) Regulations 2005, EC Regulation 561/2006 (drivers’ hours) as retained in UK law, and the Transport Act 1968 as amended.
1. STATUS OF THE DRIVER
1.1 The Driver is engaged as an independent contractor and not as an employee, worker, or agent of the Haulier. Nothing in this Agreement shall be construed as creating a contract of employment or any relationship of employer and employee between the Haulier and the Driver.
1.2 The Driver shall not be entitled to any employee benefits, including but not limited to holiday pay (beyond the minimum required under the Working Time Regulations 1998 if applicable), sick pay, pension, redundancy pay, or any other statutory employment rights conferred under the Employment Rights Act 1996.
1.3 For the purposes of the Income Tax (Earnings and Pensions) Act 2003 (Chapters 8 and 10 — IR35 off-payroll working), the Parties acknowledge that the Driver’s engagement has been assessed as [Ir35 Determination].
1.4 The Driver shall be solely responsible for accounting and paying all Income Tax and National Insurance contributions due in respect of all payments received under this Agreement, and shall indemnify the Haulier against any HMRC assessment, demand, or penalty arising from the Driver’s failure to do so.
2. SERVICES
2.1 The Driver shall provide the following services (the “Services”): [Scope of Services].
2.2 The Driver shall operate the following vehicle (where applicable): [Vehicle Registration]. The Driver shall carry out a pre-use inspection of any vehicle prior to operation and shall report any defects to the Haulier in writing in accordance with the requirements of the Road Traffic Act 1988 and the Goods Vehicles (Plating and Testing) Regulations 1988.
2.3 The Driver shall at all times comply with the Highway Code, the Road Traffic Act 1988, the Transport Act 1968, and all other applicable road transport legislation.
3. QUALIFICATIONS, LICENCES AND COMPLIANCE
3.1 The Driver warrants and represents that throughout the term of this Agreement the Driver holds and will maintain:
- a valid UK driving licence with entitlement to drive [Licence Category], issued by the Driver and Vehicle Licensing Agency (DVLA), licence number [DVLA Licence Number];
- a current Driver Certificate of Professional Competence (Driver CPC) card, card number [Driver CPC Number], expiring [CPC Expiry Date], demonstrating compliance with the requirements for periodic training under the Road Transport (Driver Qualification) Regulations 2014;
- a valid digital tachograph driver card, card number [Tachograph Card Number], in compliance with EU Regulation 165/2014 as retained in UK law and the Drivers’ Hours (Goods Vehicles) (Modifications) Order 1986.
3.2 The Driver shall immediately notify the Haulier in writing of any endorsement, disqualification, suspension, or revocation of any licence, qualification, or card referred to in clause 4.1.
3.3 The Driver shall comply with the drivers’ hours and rest period requirements prescribed by EC Regulation 561/2006 (as retained in UK law), including the daily driving limit of 9 hours (extendable to 10 hours no more than twice per week), the weekly driving limit of 56 hours, and the fortnightly driving limit of 90 hours.
3.4 The Driver shall use the digital tachograph in accordance with the applicable regulations and shall not tamper with, misuse, or interfere with any tachograph equipment.
3.5 The Driver shall comply with the Road Transport (Working Time) Regulations 2005, including the maximum average working time of 48 hours per week (calculated over a reference period of 17 weeks) and the requirements relating to breaks and rest periods for mobile road transport workers.
4. WORKING ARRANGEMENTS
4.1 The Driver shall provide the Services on a [Contract Type] basis, commencing on [Contract Start Date].
4.2 The estimated weekly commitment is [Estimated Weekly Hours], subject always to the drivers’ hours limits set out in clause 4.3.
4.3 The Driver shall have the right to work for other clients and businesses provided that such other engagements do not cause the Driver to exceed the statutory drivers’ hours limits, do not breach any confidentiality obligations, and do not create a conflict of interest with the Haulier’s operations.
5. REMUNERATION
5.1 The Haulier shall pay the Driver at the rate of £[Fee Rate] ([Fee Structure]) for the Services provided under this Agreement.
5.2 The Driver shall submit a valid invoice [Payment Frequency] setting out the Services provided and the fees due. The Haulier shall pay each invoice within [Invoice Terms Days] days of receipt.
5.3 If the Haulier fails to make payment by the due date, the Driver shall be entitled to charge interest on the overdue amount in accordance with the Late Payment of Commercial Debts (Interest) Act 1998 at the rate of 8% per annum above the Bank of England base rate, accruing daily from the due date until the date of actual payment.
5.4 The Haulier shall not deduct any Income Tax, National Insurance contributions, or any other amount from the payments made to the Driver, unless required to do so by applicable law or a final IR35 determination.
6. INSURANCE
6.1 The Driver shall, at the Driver’s own cost, obtain and maintain throughout the term of this Agreement a public liability insurance policy providing a minimum cover of £[Driver PLI Amount] per claim, and shall provide evidence of such insurance to the Haulier upon request.
6.2 The Haulier shall maintain valid motor vehicle third-party liability insurance covering the Haulier’s fleet in accordance with the Road Traffic Act 1988.
7. CONFIDENTIALITY
7.1 The Driver shall keep confidential all information concerning the Haulier’s business, clients, routes, rates, and operations that comes to the Driver’s knowledge in connection with this Agreement, and shall not disclose such information to any third party without the prior written consent of the Haulier, both during and after the term of this Agreement.
7.2 This clause shall not prevent the Driver from making a protected disclosure under the Public Interest Disclosure Act 1998 or from reporting a criminal offence to any law enforcement authority.
8. HEALTH, SAFETY AND ENVIRONMENT
8.1 The Driver shall comply with all applicable health and safety legislation, including the Health and Safety at Work etc. Act 1974, the Management of Health and Safety at Work Regulations 1999, and any health and safety policies notified by the Haulier from time to time.
8.2 The Driver shall not operate any vehicle while unfit through drink or drugs and shall comply with all applicable provisions of the Road Traffic Act 1988 and the Transport and Works Act 1992 relating to drink and drug driving.
8.3 The Driver shall carry out and record a pre-journey vehicle inspection before each shift, using any form provided by the Haulier, and shall immediately report any defects or safety concerns to the Haulier.
9. TERMINATION
9.1 Either Party may terminate this Agreement by giving [Notice Period] to the other Party.
9.2 The Haulier may terminate this Agreement with immediate effect (without notice or payment in lieu of notice) upon the occurrence of any of the following events:
- the Driver’s driving licence, Driver CPC card, or tachograph card is revoked, suspended, or surrendered;
- the Driver is convicted of any road traffic offence involving dangerous or drink/drug driving;
- the Driver commits a material breach of this Agreement that is either incapable of remedy or is not remedied within 7 days of written notice;
- the Driver becomes insolvent, bankrupt, or makes any arrangement with creditors; or
- the Driver provides false or misleading information regarding qualifications or licences.
9.3 Termination of this Agreement shall not affect the accrued rights or liabilities of either Party at the date of termination.
10. GENERAL PROVISIONS
10.1 Entire Agreement. This Agreement constitutes the entire agreement between the Parties relating to the Driver’s engagement and supersedes all prior representations, negotiations, and agreements.
10.2 Amendments. No variation of this Agreement shall be effective unless made in writing and signed by both Parties.
10.3 Severability. If any provision of this Agreement is found to be invalid, void, or unenforceable, the remaining provisions shall continue in full force and effect.
10.4 Third Party Rights. A person who is not a party to this Agreement shall have no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any of its terms.
10.5 Data Protection. Each Party shall comply with the Data Protection Act 2018 (UK GDPR) in respect of any personal data processed in connection with this Agreement.
10.6 Governing Law and Jurisdiction. This Agreement and any dispute or claim arising out of or in connection with it shall be governed by and construed in accordance with the laws of England and Wales. Each Party irrevocably submits to the exclusive jurisdiction of the courts of England and Wales.
IN WITNESS WHEREOF, the Parties have executed this HGV/Lorry Driver Contractor Agreement as of the date first written above.
THE HAULIER / OPERATOR
Name: [Haulier Name]
Address: [Haulier Address], [Haulier City], [Haulier County], [Haulier Postcode]
O-Licence No.: [O-Licence Number]
THE DRIVER (CONTRACTOR)
Name: [Driver Name]
Address: [Driver Address], [Driver City], [Driver County], [Driver Postcode]
DVLA Licence No.: [DVLA Licence Number]
Driver CPC Card No.: [Driver CPC Number]
Haulier / Operator
________________
Signature
Date: ________________
Driver (Contractor)
________________
Signature
Date: ________________
What Is a HGV/Lorry Driver Contractor Agreement (UK)?
A HGV/Lorry Driver Contractor Agreement in the United Kingdom sets the job duties, pay, hours, leave, and notice terms that bind employer and employee, with its requirements set by the Employment Rights Act 1996.
HGV operations in Great Britain are subject to a complex and highly regulated framework of legislation. The Goods Vehicles (Licensing of Operators) Act 1995 requires haulage operators to hold a valid Operator's Licence (O-licence) issued by the Traffic Commissioner, and sets out the obligations of operators in relation to vehicle maintenance and the fitness of drivers. EC Regulation 561/2006 (as retained in UK law following Brexit) prescribes the maximum permitted daily, weekly, and fortnightly driving times and minimum rest periods that all HGV drivers must observe. The Road Transport (Working Time) Regulations 2005 impose additional working time limits on mobile road transport workers. The Road Transport (Driver Qualification) Regulations 2014 require all professional HGV drivers to hold a valid Driver Certificate of Professional Competence (Driver CPC), renewed every 5 years through 35 hours of periodic training. EU Regulation 165/2014 (as retained in UK law) governs the use of digital tachographs, which must be fitted to most goods vehicles over 3.5 tonnes and used to record driving time, breaks, and rest periods.
From a tax perspective, the IR35 off-payroll working rules contained in the Income Tax (Earnings and Pensions) Act 2003 are critically important. Where the haulier is a medium or large business, it has the responsibility of determining whether the driver would be deemed an employee for tax purposes if engaged directly. A well-drafted HGV Contractor Agreement that reflects the true nature of a self-employed relationship — with a genuine right of substitution, financial risk, and no obligation of personal service — supports an outside-IR35 determination and protects both parties from unexpected HMRC liabilities.
The United Kingdom HGV/Lorry Driver Contractor Agreement (UK) agreement covers all key aspects of the engagement: the driver's licence, Driver CPC, and tachograph card details; the scope of driving services; compliance with drivers' hours and working time rules; fee structure and payment terms; insurance obligations; substitution rights; confidentiality; and termination provisions.
The legal framework governing the HGV/Lorry Driver Contractor Agreement (UK) in United Kingdom draws on several key statutes and regulatory bodies. Under the Employment Rights Act 1996, the Employment Tribunal adjudicates workplace disputes. Section 94 of the Employment Rights Act 1996 provides the right not to be unfairly dismissed. The Advisory, Conciliation and Arbitration Service (ACAS) provides early conciliation under Section 18A of the Employment Tribunals Act 1996. The UK GDPR and Data Protection Act 2018 govern personal data handling. HM Revenue and Customs (HMRC) administers PAYE and National Insurance contributions under the Income Tax (Earnings and Pensions) Act 2003. Parties executing a HGV/Lorry Driver Contractor Agreement (UK) in United Kingdom should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Employment Rights Act 1996 sets the foundational requirements.
When Do You Need a HGV/Lorry Driver Contractor Agreement (UK)?
An HGV/Lorry Driver Contractor Agreement is essential whenever a haulage business in England or Wales engages a self-employed HGV driver on a contract basis rather than hiring them as an employee. This is a common arrangement in the road haulage industry, particularly during periods of peak demand, seasonal fluctuations, or driver shortages, where businesses need flexible access to qualified drivers without the long-term commitment and cost of direct employment.
You should use this agreement whenever you are engaging a self-employed lorry driver to haul goods on a national or international basis; when taking on a driver through a driver agency on a labour-only sub-contracting arrangement; when a driver operates through their own limited company or personal service company (PSC) — in which case IR35 compliance is particularly important; when engaging a specialist driver for abnormal loads, temperature-controlled transport, or hazardous materials haulage; or when a sole trader haulier is taking on a sub-contractor to cover additional work.
The agreement is equally relevant for the driver as for the haulier. Without a written contract, the driver has no documented record of the agreed fee rate, payment terms, notice period, or working arrangements. In the event of a dispute about whether the driver is entitled to employment rights (such as paid holiday under the Working Time Regulations 1998), the absence of a written agreement makes it more difficult to demonstrate the true nature of the relationship.
Given the severe consequences of non-compliance with drivers' hours rules — including criminal prosecution, prohibition notices, and loss of the operator's O-licence — both parties benefit from a written agreement that clearly allocates responsibility for tachograph compliance, vehicle inspections, and licence maintenance between the haulier and the driver contractor.
Parties in United Kingdom should prepare a HGV/Lorry Driver Contractor Agreement (UK) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under the Employment Rights Act 1996, the Employment Tribunal adjudicates workplace disputes. Section 94 of the Employment Rights Act 1996 provides the right not to be unfairly dismissed. The Advisory, Conciliation and Arbitration Service (ACAS) provides early conciliation under Section 18A of the Employment Tribunals Act 1996. The UK GDPR and Data Protection Act 2018 govern personal data handling. HM Revenue and Customs (HMRC) administers PAYE and National Insurance contributions under the Income Tax (Earnings and Pensions) Act 2003. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your HGV/Lorry Driver Contractor Agreement (UK)
A thorough HGV/Lorry Driver Contractor Agreement for use in England and Wales should address several areas that are specific to the road haulage industry and distinguish it from a standard freelance or contractor agreement.
The employment status and IR35 provisions are foundational. The agreement must clearly state that the driver is engaged as an independent contractor and not as an employee, and should record the outcome of the haulier's IR35 determination where the haulier is a medium or large business. A genuine right of substitution clause — allowing the driver to provide a suitably qualified substitute — is one of the most important indicators of self-employment under English case law, particularly following the Supreme Court's analysis in Uber BV v Aslam [2021] and the Court of Appeal's decision in Pimlico Plumbers Ltd v Smith [2017].
The qualifications and compliance clause should record the driver's DVLA licence number and category, Driver CPC card number and expiry date, and digital tachograph card number. The driver should give a warranty that all licences and qualifications are valid and undertake to notify the haulier immediately of any suspension or revocation.
The drivers' hours compliance clause must reference EC Regulation 561/2006 as retained in UK law and the Road Transport (Working Time) Regulations 2005, and should clearly state the maximum permitted driving times and rest period obligations. The tachograph obligations clause should confirm that the driver must use the digital tachograph correctly throughout each engagement.
The Operator's Licence clause should record the haulier's O-licence number and confirm that the haulier is responsible for maintaining a valid licence throughout the term of the agreement. The insurance clause should specify the minimum levels of public liability insurance the driver must maintain, and confirm the haulier's obligations in respect of fleet motor insurance and (where applicable) goods in transit insurance.
The fee and payment clause should specify the rate (hourly, daily, mileage, or fixed per assignment), payment frequency, and the Late Payment of Commercial Debts (Interest) Act 1998 interest rate applicable to overdue invoices. The termination clause should allow immediate termination if the driver loses their licence, CPC, or tachograph card.
Additional compliance elements for a HGV/Lorry Driver Contractor Agreement (UK) used in United Kingdom include: Under the Employment Rights Act 1996, the Employment Tribunal adjudicates workplace disputes. Section 94 of the Employment Rights Act 1996 provides the right not to be unfairly dismissed. The Advisory, Conciliation and Arbitration Service (ACAS) provides early conciliation under Section 18A of the Employment Tribunals Act 1996. The UK GDPR and Data Protection Act 2018 govern personal data handling. HM Revenue and Customs (HMRC) administers PAYE and National Insurance contributions under the Income Tax (Earnings and Pensions) Act 2003. Forms-legal.com provides this template as a starting point for United Kingdom-compliant documentation.
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Forms Legal. (2026). HGV/Lorry Driver Contractor Agreement (UK) (United Kingdom) [Legal document template]. Forms Legal. https://forms-legal.com/uk/employment/contractor-agreements/uk-hgv-contractor-agreement
"HGV/Lorry Driver Contractor Agreement (UK) (United Kingdom)." Forms Legal, 2026, https://forms-legal.com/uk/employment/contractor-agreements/uk-hgv-contractor-agreement.
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year = {2026},
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note = {Free legal document template. Based on Employment Rights Act 1996}
}Frequently Asked Questions
IR35 refers to the off-payroll working rules contained in Chapters 8 and 10 of the Income Tax (Earnings and Pensions) Act 2003. These rules apply when a self-employed contractor would be treated as an employee for tax purposes if they were engaged directly rather than through an intermediary (such as a limited company). From April 2021, medium and large businesses — those meeting two of: 50 or more employees, turnover of £10m or more, or balance sheet total of £5m or more — became responsible for determining the deemed employment status of contractors they engage. If a haulier is a medium or large business and determines that an HGV driver contractor is inside IR35, the haulier must deduct Income Tax and National Insurance at source via PAYE before paying the driver's company. Small businesses are exempt and the driver is responsible for self-assessing. HMRC's Check Employment Status for Tax (CEST) tool can be used to assess status, though it is not binding.
A self-employed HGV driver in Great Britain must hold: (1) a valid UK driving licence with Category C (rigid vehicles over 3.5 tonnes) or Category C+E (articulated lorries or draw-bar combinations) entitlement, issued by the DVLA; (2) a current Driver Certificate of Professional Competence (Driver CPC) card, demonstrating completion of 35 hours of periodic training every 5 years under the Road Transport (Driver Qualification) Regulations 2014; and (3) a valid digital tachograph driver card, required for compliance with EU Regulation 165/2014 as retained in UK law. Failure to hold any of these can result in prosecution, fixed penalty notices, and points on the driver's licence. Haulage operators who permit unlicensed or unqualified drivers to operate risk serious sanctions against their Operator's Licence.
Most HGV operations in Great Britain are subject to EC Regulation 561/2006 as retained in UK law following Brexit. This sets the following key limits: a maximum of 9 hours driving per day (extendable to 10 hours no more than twice per week); a maximum of 56 hours driving per week; a maximum of 90 hours driving per fortnight; a minimum 45-minute break after 4.5 hours of driving (which may be split into a 15-minute break followed by a 30-minute break); a minimum daily rest of 11 consecutive hours (which may be reduced to 9 hours no more than 3 times per week); and a weekly rest of at least 45 consecutive hours (which may be reduced to 24 hours alternately). Additionally, the Road Transport (Working Time) Regulations 2005 impose a maximum average working time of 48 hours per week (over a 17-week reference period) for mobile road transport workers.
An Operator's Licence (O-licence) is a licence issued by the Traffic Commissioner under the Goods Vehicles (Licensing of Operators) Act 1995 that authorises a business to operate goods vehicles over 3.5 tonnes gross plated weight on public roads in Great Britain. There are three types: a Restricted O-licence (goods carried for own business purposes only), a Standard National licence (goods carried for hire or reward nationally), and a Standard International licence (goods carried nationally and internationally). The holder of an O-licence must comply with obligations relating to vehicle maintenance, drivers' hours, and the continuous fitness of the licence holder. A self-employed HGV driver contractor operating their own vehicle for hire or reward must also hold their own O-licence unless they are genuinely operating as an employee or under a legitimate labour-only sub-contracting arrangement.
Under English law, workers and employees have different employment rights. A genuinely self-employed contractor — one who controls how and when they work, bears financial risk, and has a genuine right of substitution — will generally not be entitled to employee or worker rights such as the national minimum wage, paid annual leave under the Working Time Regulations 1998, unfair dismissal protection, or statutory sick pay. However, following the Supreme Court's decision in Uber BV v Aslam [2021] UKSC 5, tribunals look beyond the contractual label and examine the reality of the working relationship. An HGV driver who in practice has no meaningful right of substitution, is required to be personally available, and is integrated into the haulier's operations may be found to be a worker or even an employee. The inclusion of a genuine substitution clause — and actually permitting substitution — is therefore important in supporting self-employed status.
Under EU Regulation 165/2014 as retained in UK law, both the driver and the transport operator (haulier) have specific responsibilities in relation to tachograph equipment. The driver must use the digital tachograph correctly, insert their personal driver card at the start of each shift, and must not tamper with, withhold, destroy, or falsify tachograph records. The operator is responsible for ensuring that properly functioning tachograph equipment is installed and calibrated in each vehicle, that records are downloaded at the required intervals (at least every 90 days for vehicles and 28 days for driver cards), and that records are retained for at least 12 months. DVSA traffic examiners have powers to inspect tachograph records at the roadside or at an operator's premises. Serious tachograph offences can result in criminal prosecution.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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