DPD has announced plans to offer drivers sick and holiday pay, whilst also abolishing the £150 daily fines for missing work.
Following the death of Don Lane, a DPD driver who died from diabetes after missing doctors appointments to avoid the £150 daily fine, the courier service is reforming its gig-working model.
“We recognise that we need to improve the way we work with our drivers,” said Dwain MacDonald, the chief executive of the company.
“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. Our plan is to completely transform our overall driver offer, as well as the day-to-day working relationship we have with our drivers,” he added.
DPD said on Monday that they would give all 6,000 couriers rights to paid holiday, sick pay and access to a pension scheme.
Couriers who choose to be employed directly with the firm, as opposed to working on a self-employed franchise basis, will be paid less per package delivered to make up the cost of sick and holiday pay.
“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,” said DPD in a statement.
DPD delivers for companies including Marks & Spencer, Amazon and John Lewis and is the first of the major delivery companies to introduce fundamental reforms amid growing concerns over the gig economy.
Don Lane died whilst at work on 4 January after missing appointments with specialists due to the £150 daily fine he would miss.
“There was a constant threat of a fine. They had to deliver the parcels to tight slots and the pressure to get them done was huge. He was putting the company before his own health. He wasn’t able to do his parcels first and make the hospital appointments, so he would cancel on the day,” his wife said.