DPD to introduce worker contract as part of new Driver Code

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Parcel delivery company DPD is to introduce a new worker job category for delivery drivers, as part of a strategic review of its operation. The new status is expected to form part of a wider DPD Driver Code, which the firm will roll out later this year.

DPD will become the first parcel delivery company to introduce a self-employed worker contract. This will offer drivers a new choice in between being directly employed by DPD or working with DPD on a self-employed franchise basis. Drivers on this contract will receive some of the protections of being employed, including paid annual leave, pension entitlement and sick pay, but will also be able to realise the benefits of being self-employed, by having a higher earning potential and greater flexibility and choice over how they work.

When the new worker category is launched, DPD will be offering all current employed and self-employed drivers the opportunity to switch to worker status.

The company will also confirm that the current breach system for self-employed drivers, which includes the £150 charge for failing to provide service, will be scrapped completely and replaced by a new, more consistent and transparent points-based service failure system.

The new measures are part of a strategic review of operations which has included consultation with drivers from across the UK. In addition, they sought independent external advice as part of this review, to ensure that the new Driver Code is fair to all those who work with the company.

We recognise that we need to improve the way we work with our drivers. While the self-employed franchise scheme has benefitted thousands of drivers over the past 20 years, it hasn’t moved with the times and needs updating. Our plan is to completely transform our overall driver offer, as well as the day-to-day working relationship we have with our drivers. I’ve been visiting our depots and talking to our drivers and the package of measures we are developing will be a direct result of those conversations.
– Dwain McDonald, DPD

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