In a boost for the “gig economy”, Deliveroo has won a landmark legal battle to not give riders holiday pay or a minimum wage.
The decision was made by the Central Arbitration Committee (CAC), who argued that Deliveroo drivers are self-employed rather than employees.
“The central and insuperable difficulty for the union is that we find that the substitution right to be genuine, in the sense that Deliveroo have decided in the new contract that riders have a right to substitute themselves both before and after they have accepted a particular job; and we have also heard evidence, that we accepted, of it being operated in practice,” said the CAC.
“Since we have found that the riders are not workers, we cannot accept the Union’s claim for recognition and for rights to negotiate on pay, hours and holidays with Deliveroo,” they added.
The move has come as a blow for campaigners for workers’ rights in the gig economy.
Deliveroo has worked their way through the system and found ways for their riders to not be classified as ‘workers’. One such way is the food delivery company no longer requires riders to wear a branded uniform as well as remove performance monitoring.
“It seems that after a series of defeats, finally, a so-called gig economy company has found a way to game the system,” said Jason Moyer-Lee, the IWGB general secretary.
“On the basis of a new contract introduced by Deliveroo’s army of lawyers just weeks before the tribunal hearing, the CAC decided that because a rider can have a mate do a delivery for them, Deliveroo’s low-paid workers are not entitled to basic protections.”
Deliveroo has said this decision is one of benefit to its delivery riders, who value flexibility. The managing director of the firm said the company wanted the law changed so they could offer sick pay whilst still maintaining flexibility.