How do I check a courier company’s contractor driver agreements before buying?

Courier companies often rely on drivers who run their own vehicles. That arrangement can work well, but the written agreement and the day-to-day reality have to match. Ask for all current agreements and a list of drivers who work without one. Note whether the terms are the same across drivers or whether the owner has made side arrangements for favourites.

Then look at the practice. Does the company set routes and hours, require uniforms, restrict work for others, or supply equipment? The more control the company has, the more questions arise about how the relationship is classed. This is a legal and tax question, so put it to your lawyer and your accountant early and do not rely on how it has always been done.

Next, check how the agreements move to a buyer. Can they be assigned, or do you have to sign new ones? Which drivers are essential, and are they likely to stay? Ask about any open disputes, unpaid amounts or complaints. Make sure the purchase agreement addresses past liabilities, so that you are not inheriting an unresolved issue. Speak with a few drivers, with the seller’s permission, about how they see their own role, and compare that with the paperwork.

Key takeaways

• Compare the written terms with how drivers really work.
• Ask who supplies vehicles, schedules and equipment.
• Have your lawyer address past liabilities in writing.