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Labor inspection rejects Deliveroo's labor model

The first employment record on digital distribution companies concludes that their workers are salaried and non-self-employed

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Labor inspection rejects Deliveroo's labor model

For more than a year, image of a young bicycle with a helmet, jacket and a large backpack with logo of Deliveroo distributing food has become habitual in big cities. On paper, that rider is not part of distribution company's staff. It would be a "service provider", it is read in contracts that Deliveroo has signed with some 1,000 deliverymen throughout Spain. In heading of se documents he tries to clarify it more by stating that it is a "contract of services" of a "self-employed worker".

With this work model, company avoids to register in Social security to workers and to pay corresponding contributions in general scheme, that of employees. Both charges are delegated, obligatorily, to dealer. But Labour inspectorate rejects this model, as contained in a liquidation act concluded on 11 December to which country has been accessed. This act is part of file opened by several complaints filed in Valencia and refore does not affect all company's departers throughout Spain. However, re are more open inspection actions on Deliveroo after allegations promoted by rights riders, articulated through Interunion, in Valencia, Barcelona and Madrid.

"In present case, notwithstanding formal existence of contracts and invoices between two parties, civil relationship that y intend to create hides, in reality a real working relationship", exposes inspection in first resolution on what type of relationship They have employee and employer in digital distribution companies. That re is a contract signed that says that relationship is same between a freelancer who provides his services to Deliveroo, seeking commercial regulation, is not determinant. "The true contract must prevail over pretended or feigned pact," he ditches.

This is official way of saying that, in opinion of inspection, delivery people are false self-employed. Which leads him to ask 160,814.9 euros for unpaid contributions, plus corresponding surcharges of a hundred employees of company in Valencia.

Possible resource

Roofoods Spain, Deliveroo's corporate name, seeks to appeal decision: "We hope that this proposal will be revised in courts and, having won before courts in United Kingdom and France, we are confident that it proves that y are self-employed."

For inspection, relationship is labor because three key principles concur in this type of relationship. One is dependency: The worker depends on company to organize his work. That Deliveroo allow to choose day and time is not decisive, because "it is it [ company] that decides finally days, zones and timetable". "The company can, at any time — and, indeed, it has happened [...] — Dictate new instructions and workers must obey, because only options y have are to accept conditions or cease to provide service. "

This statement is based on company's post to workers in which termination of contract is reported. "Bad house that pretended freedom of choice that company preaches, with that termination of contract by rejection of distribution in a repeated way," inspector points out.

The official also concludes that relationship is working because it is company that unilaterally sets pay and for being one who contributes "all substantial infrastructure" of activity itself: "Material and human resources, including It application, nuclear element of relationship, relationship with restaurants and clients and all precise support ".

The conflict is not new. In summer re was a strike. After company changed contracts with workers, he went on to talk about economically dependent workers (TRADE). This modification contrasts company: "It is a proposal based on a relationship that is no longer in force in Spain." However, inspection act itself rejects argument. "Nor does it adapt, as Deliveroo has since July 2017, figure of TRADE".


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