My subcontractor agreement - Critique needed please.
Discussion
Hi Chaps.
Thanks for all the help and advice in putting this together. Basically, this is a sub-contractor agreement for our self employed drivers.
The aims of the agreement are to protect the drivers self-employed status, set out minimum working standards and finally to help new drivers get into the business with a simple loan agreement at the end that the subcontractor can opt in or out of.
I've tried to keep everything really simple, and the eventual aim isn't a watertight document that will hold up in a tribunal or anything (although I do have a care towards those, as I don't want this to be a contract of employment!).
Would any of you be kind enough to critique my efforts and make suggestions where they are needed?
Thanks for all the help and advice in putting this together. Basically, this is a sub-contractor agreement for our self employed drivers.
The aims of the agreement are to protect the drivers self-employed status, set out minimum working standards and finally to help new drivers get into the business with a simple loan agreement at the end that the subcontractor can opt in or out of.
I've tried to keep everything really simple, and the eventual aim isn't a watertight document that will hold up in a tribunal or anything (although I do have a care towards those, as I don't want this to be a contract of employment!).
Would any of you be kind enough to critique my efforts and make suggestions where they are needed?
KingRichards Contract said:
Longleys Private Hire
Self Employed Drivers Subcontractor Agreement
Sub-contractor Name:
Address:
Position: Self Employed Journeyman
Reporting to: Duty controller on shift
Contract Rate: 40% of sales revenue generated by the sub-contractor
Date of Commencement:This contract begins on
This document is an agreement between the named sub-contractor and Longleys Private Hire. In signing this document the sub-contractor agrees to abide by the terms of this agreement.
Working Hours
Working week: Monday morning to Sunday night.
Working hours: Chosen by the sub-contractor and subsequently agreed by the Management Team.
Absence
Notification of holidays – 1 month
Notification of sickness – Previous Day
General Duties and Responsibilities
• Provide a Private Hire service to Longleys customers.
• Maintain general cleanliness of vehicles inside and out.
• Carry out safety check of vehicle at beginning of shift - to include but not limited to:
• Bulbs, Tyres, Screen-wash and Oil level. The sub-contractor has the right to refuse a defective vehicle – any defects must be reported immediately to the Duty Controller.
• Account for all monies received to the business – responsibility remains with the sub-contractor if not handed over in the accepted manner. Bad debt is the sole liability of the sub-contractor.
• Payment of all fines due to driving, vehicle condition and parking offences incurred by the sub-contractor or the vehicle allocated to the sub-contractor whilst performing your duties for the Company.
• Employees should keep themselves busy between driving work by maintaining the general vehicle condition and tidiness/cleanliness of the yard/office and tea/coffee area.
• At the end of your shift, ensure the vehicle allocated to you is:
Suitably fuelled, cleaned and locked, all appropriate electrical items are switched off and parked in a secure location such that it is not obstructing other vehicles.
• Complete drivers log sheets as instructed.
• Any other task that may be reasonably asked.
Conduct
• To be courteous to customers general public and other members of staff at all times.
• Abide by the Highway Code and all UK/European legislation whilst driving.
• Arrive to begin work smart and suitably dressed.
• No smoking in or near vehicles or office.
Termination of this agreement:
The management team reserve the right to terminate this agreement with immediate effect following a SINGLE occurrence of ANY of the following by the sub-contractor.
• Theft.
• Dishonesty.
• Driving whilst under the influence of alcohol or drugs.
• Consumption of alcohol or illegal drugs.
• Dangerous and/or reckless driving.
• Conduct likely to bring Longleys Private Hire into disrepute.
• Smoking in a designated non-smoking area, ie: vehicles or office.
• Loss of driving licence.
• Failure to obtain or maintain entitlement to the appropriate Private Hire Licence.
• The use of Longleys vehicles for private purposes without the prior consent of the Management Team.
I accept the terms of this sub-contractors agreement to provide a service on behalf of Longleys Private Hire as a self-employed Journey-man. I understand that the agreement will continue in perpetuity unless terminated in the appropriate manner by either party.
Signed…………………………………
Print……………………………………
Date……………………………………
Licence Loan scheme
In order to work as a Private Hire driver with Longleys, you will need to obtain the appropriate licence from Canterbury City Council. This will involve:
• Making an application to Canterbury City Council with sponsorship from Longleys Private Hire.
• CRB (Criminal Record) check.
• Medical by a Licensing Authority named GP.
• Practical Driving Test.
Longleys private Hire is prepared to advance part of the cost of this application in certain circumstances.
The practical driving test must be funded by yourself as the result is beyond the control of the business and you may need a re-test. Longleys Private Hire will advance the rest of the application fees.
I require financial assistance to apply for my Private Hire Drivers License.
By signing below, you enter an agreement to repay Longleys Private Hire at the rate of £20 per week for 12 weeks. Your repayments will begin on the first week that your licence has been granted by Canterbury City Council. There will be no breaks in your repayments. If the subcontractor agreement is terminated for any reason, during or before the advance has been settled in full, the outstanding balance will immediately become payable. The total that must be repaid is £240
Signed…………………………………
Print……………………………………
Date……………………………………
I do not require financial assistance to apply for my Private Hire Drivers Licence and will fund the application myself.
Signed…………………………………
Print……………………………………
Date……………………………………
On Behalf of Longleys Private Hire
Signed…………………………………
Print……………………………………
Position……………………………….
Date……………………………………
Cheers Self Employed Drivers Subcontractor Agreement
Sub-contractor Name:
Address:
Position: Self Employed Journeyman
Reporting to: Duty controller on shift
Contract Rate: 40% of sales revenue generated by the sub-contractor
Date of Commencement:This contract begins on
This document is an agreement between the named sub-contractor and Longleys Private Hire. In signing this document the sub-contractor agrees to abide by the terms of this agreement.
Working Hours
Working week: Monday morning to Sunday night.
Working hours: Chosen by the sub-contractor and subsequently agreed by the Management Team.
Absence
Notification of holidays – 1 month
Notification of sickness – Previous Day
General Duties and Responsibilities
• Provide a Private Hire service to Longleys customers.
• Maintain general cleanliness of vehicles inside and out.
• Carry out safety check of vehicle at beginning of shift - to include but not limited to:
• Bulbs, Tyres, Screen-wash and Oil level. The sub-contractor has the right to refuse a defective vehicle – any defects must be reported immediately to the Duty Controller.
• Account for all monies received to the business – responsibility remains with the sub-contractor if not handed over in the accepted manner. Bad debt is the sole liability of the sub-contractor.
• Payment of all fines due to driving, vehicle condition and parking offences incurred by the sub-contractor or the vehicle allocated to the sub-contractor whilst performing your duties for the Company.
• Employees should keep themselves busy between driving work by maintaining the general vehicle condition and tidiness/cleanliness of the yard/office and tea/coffee area.
• At the end of your shift, ensure the vehicle allocated to you is:
Suitably fuelled, cleaned and locked, all appropriate electrical items are switched off and parked in a secure location such that it is not obstructing other vehicles.
• Complete drivers log sheets as instructed.
• Any other task that may be reasonably asked.
Conduct
• To be courteous to customers general public and other members of staff at all times.
• Abide by the Highway Code and all UK/European legislation whilst driving.
• Arrive to begin work smart and suitably dressed.
• No smoking in or near vehicles or office.
Termination of this agreement:
The management team reserve the right to terminate this agreement with immediate effect following a SINGLE occurrence of ANY of the following by the sub-contractor.
• Theft.
• Dishonesty.
• Driving whilst under the influence of alcohol or drugs.
• Consumption of alcohol or illegal drugs.
• Dangerous and/or reckless driving.
• Conduct likely to bring Longleys Private Hire into disrepute.
• Smoking in a designated non-smoking area, ie: vehicles or office.
• Loss of driving licence.
• Failure to obtain or maintain entitlement to the appropriate Private Hire Licence.
• The use of Longleys vehicles for private purposes without the prior consent of the Management Team.
I accept the terms of this sub-contractors agreement to provide a service on behalf of Longleys Private Hire as a self-employed Journey-man. I understand that the agreement will continue in perpetuity unless terminated in the appropriate manner by either party.
Signed…………………………………
Print……………………………………
Date……………………………………
Licence Loan scheme
In order to work as a Private Hire driver with Longleys, you will need to obtain the appropriate licence from Canterbury City Council. This will involve:
• Making an application to Canterbury City Council with sponsorship from Longleys Private Hire.
• CRB (Criminal Record) check.
• Medical by a Licensing Authority named GP.
• Practical Driving Test.
Longleys private Hire is prepared to advance part of the cost of this application in certain circumstances.
The practical driving test must be funded by yourself as the result is beyond the control of the business and you may need a re-test. Longleys Private Hire will advance the rest of the application fees.
I require financial assistance to apply for my Private Hire Drivers License.
By signing below, you enter an agreement to repay Longleys Private Hire at the rate of £20 per week for 12 weeks. Your repayments will begin on the first week that your licence has been granted by Canterbury City Council. There will be no breaks in your repayments. If the subcontractor agreement is terminated for any reason, during or before the advance has been settled in full, the outstanding balance will immediately become payable. The total that must be repaid is £240
Signed…………………………………
Print……………………………………
Date……………………………………
I do not require financial assistance to apply for my Private Hire Drivers Licence and will fund the application myself.
Signed…………………………………
Print……………………………………
Date……………………………………
On Behalf of Longleys Private Hire
Signed…………………………………
Print……………………………………
Position……………………………….
Date……………………………………
I notice that you refer to your "sub-contractor" drivers as "employees" at one point. That won't further the cause of having them categorised as "self-employed".
I saw no reference to "substitution" anywhere in the comtract. For an individual to satisfy his/her self-employed status, it usually means that he/she can replace himself/herself with a replacement individual of his/her own chosing - either as another sub-contracyor or employee.
I saw no reference to "substitution" anywhere in the comtract. For an individual to satisfy his/her self-employed status, it usually means that he/she can replace himself/herself with a replacement individual of his/her own chosing - either as another sub-contracyor or employee.
Eric Mc said:
I notice that you refer to your "sub-contractor" drivers as "employees" at one point. That won't further the cause of having them categorised as "self-employed".
I saw no reference to "substitution" anywhere in the comtract. For an individual to satisfy his/her self-employed status, it usually means that he/she can replace himself/herself with a replacement individual of his/her own chosing - either as another sub-contracyor or employee.
Ooh boI saw no reference to "substitution" anywhere in the comtract. For an individual to satisfy his/her self-employed status, it usually means that he/she can replace himself/herself with a replacement individual of his/her own chosing - either as another sub-contracyor or employee.
ocks! Well spotted. 10 points awarded 
Ok, how could I phrase a paragraph about substitution? I don't want it to look like they can just ask anyone to work for our business, because I obviously do not want that.
Thanks
I'm afraid "substitution" is one of the key elements looked for by the Revenue.
In their eyes, "self employment" really transllates to "trading on their own account" i.e. running their own business. A hallmark of running a business is the ability to hire and fire your own staff, or replace yourself by someone of your own chosing as and when required.
If you try and stop someone from exercising their right of substitution, you are imposing an "employer" type restriction on their trading (self employed) activity.
In their eyes, "self employment" really transllates to "trading on their own account" i.e. running their own business. A hallmark of running a business is the ability to hire and fire your own staff, or replace yourself by someone of your own chosing as and when required.
If you try and stop someone from exercising their right of substitution, you are imposing an "employer" type restriction on their trading (self employed) activity.
Eric Mc said:
I'm afraid "substitution" is one of the key elements looked for by the Revenue.
In their eyes, "self employment" really transllates to "trading on their own account" i.e. running their own business. A hallmark of running a business is the ability to hire and fire your own staff, or replace yourself by someone of your own chosing as and when required.
If you try and stop someone from exercising their right of substitution, you are imposing an "employer" type restriction on their trading (self employed) activity.
Right...In their eyes, "self employment" really transllates to "trading on their own account" i.e. running their own business. A hallmark of running a business is the ability to hire and fire your own staff, or replace yourself by someone of your own chosing as and when required.
If you try and stop someone from exercising their right of substitution, you are imposing an "employer" type restriction on their trading (self employed) activity.
So can I state that any substitute made has to meet the same rules for being a subcontractor in the first place?
Would I leave myself legally vulnerable if I simply stated that there was a shortage of work or something if a 'subcontractor' wanted to exercise their right to substitution?
Cheers
There are no hard and fast rules as to what you can or cannot say. However, wherever you start stating in a contract when and where your "sub-contract" people can or cannot allocate a different individual to replace themselves, it may be taken by the Revenue as an attempt to exercise "employer" type control over a worker.
Obviously, even as a non-employer you would legitimately have some control over the calibre of people doing work for you.
Obviously, even as a non-employer you would legitimately have some control over the calibre of people doing work for you.
To be fair, I won't venture forth with any more opinion on this matter. It would not be professionally advisable for me to give specific comment on a specific contract or legal document.
I'm happy to make general comments on such matters but if you really feel you need specific advise on this you should really talk to your own accountant or a solicitor.
I'm happy to make general comments on such matters but if you really feel you need specific advise on this you should really talk to your own accountant or a solicitor.
EricMc said:- said:
you should really talk to your own accountant or a solicitor.
This is spot on, there is NO EXCUSE for skimping on these types of contracts, as when you need it the most, you'll find that it just won't be watertight.Personally I reckon you need a commercial solicitor to draw it up (noting your points) and for your accountant to review it for any tax implications. I wouldn't trust an accountant to sort out the legal stuff nor a solicitor to understand the full tax implications.
Now here's a piece of advice - it's a nice day, you've been complaining of overwork on other threads, leave this alone, it can wait until your solicitor opens tomorrow, and get away from your desk!
davidy
Edited by DavidY on Sunday 21st October 15:43
Eric Mc said:
To be fair, I won't venture forth with any more opinion on this matter. It would not be professionally advisable for me to give specific comment on a specific contract or legal document.
I'm happy to make general comments on such matters but if you really feel you need specific advise on this you should really talk to your own accountant or a solicitor.
OK at the risk of sounding unhelpful I have reviewed this and it's not really something I'd use as it has a lot missing.I'm happy to make general comments on such matters but if you really feel you need specific advise on this you should really talk to your own accountant or a solicitor.
I agree with Eric Mc that you need to use the services of a solicitor to draw up an appropriate contract containing appropriate indemnitites, liability limits, insurance, tax clauses, governing law clause, dispute resolution clause, TUPE clause etc etc etc.
Vesuvius 996 said:
Eric Mc said:
To be fair, I won't venture forth with any more opinion on this matter. It would not be professionally advisable for me to give specific comment on a specific contract or legal document.
I'm happy to make general comments on such matters but if you really feel you need specific advise on this you should really talk to your own accountant or a solicitor.
OK at the risk of sounding unhelpful I have reviewed this and it's not really something I'd use as it has a lot missing.I'm happy to make general comments on such matters but if you really feel you need specific advise on this you should really talk to your own accountant or a solicitor.
I agree with Eric Mc that you need to use the services of a solicitor to draw up an appropriate contract containing appropriate indemnitites, liability limits, insurance, tax clauses, governing law clause, dispute resolution clause, TUPE clause etc etc etc.
As a simple repayment agreement, does the last section read ok? I'm not so bothered that I can enforce it in court... I'd just really like to encourage drivers to come aboard. It's not like I'm stitching them up. The agreement is effectively an interest fee advance on their takings.
Thanks mate.
Oh, and thanks DavidY, I went out for a great evening last night and really switched off. Thanks for the suggestion. I feel good this morning
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