DPD to offer drivers holiday and sick pay under new contracts

30 March 2018

Another ‘gig’ economy’ company hits the headlines; DPD is offering its 6,000 drivers holiday and sick pay as part of a new contract.

The BBC has reported that DPD, which delivers for John Lewis and Marks and Spencer, has said that it is the first parcel carrier to offer such contracts after being under scrutiny after work pressures were blamed for the death of one of its drivers.

Dwain McDonald, DPD's chief executive, said:

"We recognise that we need to improve the way we work with our drivers. While the self-employed franchise scheme has benefited thousands of drivers over the past 20 years, it hasn't moved with the times and needs updating."

Reportedly consultation is ongoing with DPD's drivers and they are paying for advisers to help drivers make the choice between staying self-employed or moving to the new contract.

Well-known firms in the gig economy include Uber, Deliveroo, and DPD's courier rivals including Hermes, UK Mail and Yodel.

Pressure from unions and other concerned parties prompted the government to appoint Matthew Taylor, a former Labour policy adviser to look into the gig economy.

Read the full report from the BBC.


CIPP comment

The Government published their response to the Taylor review on Modern working practices in February 2018.

Highlights from the response include:

  • Millions of workers to get new day-one rights with sick and holiday pay to be enforced for vulnerable workers for the first time
  • Reforms will ensure employment law and practices keep pace with modern ways of working created by rapid technological change
  • For the first time, the government will be accountable for good quality work as well as quantity of jobs - a key ambition of the UK’s Industrial Strategy