Courier Business Stuff

I can guarantee that it’s nothing whatsoever to do with IR35. IR35 only applies to companies – so the idea that DHL would insist that owner-drivers form companies to avoid IR35 just doesn’t work.

IR35 just applies the same employment tests to service companies as it does to the self-employed and the same get-outs apply. So if you provide your own vehicle and stand to make profits or lose money depending on how you run your business then you/your company avoids looking like an employee. The fact that you work for just one customer is never relevant. Since DHL O/Ds supply their own vehicle, are paid per parcel and are fined for non-deliveries then they pass the self-employed/IR35 tests.

On top of that, as Richard mentions, even if they do none of the above and act and are treated exactly like employees then they can pass the self-employed/IR35 test just by having it written into their contracts that they have the right, or even better the responsibility, to provide a substitute driver whenever they wish.

So unless DHL have the most cautious and/or incompetent lawyers in the world I’m left with the feeling that there’s something else behind this ‘service partner’ concept.

My suspicion is that DHL’s position on this is more about accountability than employment status. They’re too much of a big fish to be able to risk getting caught cutting the corners they need to in order to operate efficiently and profitably. Far better to force their ‘service partners’ to cut the corners for them and then point the finger at these ‘independent companies’ when problems occur. Just my opinion.

Posted under Employment

To be honest I think you’d be better off with some proper legal advice Jerry – there’s no template that’s going to cover everything that you need to consider. If you don’t go for proper legal advice a template isn’t needed anyway – you just need to write down what your agreement is and sign it, maybe get it witnessed by a third party as well.

Assuming that when you say ‘Business Partnership Agreements’ you mean an agreement to go into business with another person then you’d probably be best forming a limited company anyway – and you’re probably best receiving advice like that from someone that’s paid to give it.
 

Posted under Legal Issues

James, it has no particular relevance to this thread but for future information:

There are two types of partial exemption from ADR for carrying small quantities of ADR goods; Limited Quantities (or ‘LQ’) allows you to carry genuine LQ goods, marked with a white ‘LQ’ diamond, outside the scope of ADR with no formal training other than training in (or understanding of) normal Health & Safety procedures. It’s up to the shipper to decide whether it’s LQ or not and to mark the packages appropriately. If there’s no LQ diamonds on the packages then it’s not LQ.

The other partial exemption from the full scope of ADR is goods carried under the thresholds laid down in 1.1.3.6.3 of ADR and amended by the Carriage Regulations. To carry goods under this ‘small loads’ exemption you still need ‘Awareness’ training (which you’ve suggested that you’ve got) and access to a DGSA. If you’re not sure whether you can carry the goods with just ‘Awareness’ training then you’re meant to consult your DGSA to find out.

If the goods weren’t marked as ‘LQ’ and you’ve not got access to a DGSA then you shouldn’t have been carrying the goods anyway, no matter how small the quantity.
 

Posted under Hazardous Goods - ADR

Yes Glen, and they should also assess the credit risk of each prospective customer, establish proper credit control procedures, have a professionally produced business plan and produce monthly management accounts which are discussed at meetings with their accountant on the first Friday of every month.

In the real world though the owner-driver spends 50+ hours a week behind the wheel of a van and what’s left over after paying his expenses barely provides a proper wage.

Chasing overdue invoices is annoying, time-consuming and costs money. Generally companies expect to pay lower rates to owner-drivers than to established companies simply because the O/D hasn’t got the overheads associated with running a back office; the reverse side of the coin is that O/Ds expect their lack of office-support and sources of funding to be taken account of by companies. Most companies play the game fairly – some don’t.

I assume at some stage you’ve used your own ‘in house’ owner-drivers, acting as pseudo-employees? Did you expect them to wait 90 days for payment? Do you or your employees wait 90 days to receive your salary?

The companies that habitually pay late are simply using their smaller suppliers as a source of free credit, while continuing to draw their own salaries and continuing to pay those suppliers that they can’t bully. It seems a bit odd for you to criticise O/Ds for not having resources behind them, while apparently supporting the companies that pay late for the same reason.
 

Posted under Late Payment