On March 24, the Dutch Supreme Court ruled that riders working for online food delivery service Deliveroo are employees, not self-employed, DutchNews.nl reports.
The legal decision will have an impact across the platform economy.
The verdict is reportedly the culmination of years of legal proceedings. It was brought by the FNV trade union and upholds that of the lower courts. Deliveroo pulled out of the Netherlands last year but the company had argued that its riders were independent contractors because they could pick their own hours and refuse deliveries if they did not want to do them.
The Supreme Court, however, upheld a lower court ruling which said that the delivery workers should be considered to be on the payroll because there was a relationship based on authority and Deliveroo managed their actions via the login system.
While Deliveroo has left the country, the ruling will have implications for similar cases – such as those involving taxi service Uber and temp agency Temper – which are currently before the courts.
FNV deputy president Zakaria Boufangacha said, “The employees are indeed managed and have virtually no say over pay rates and working conditions.
“As a result, they have to pay and arrange their own insurance, days off and pensions. And they don’t do it, because the pay is far too low.”
Mr Boufangacha added that “society is also losing money because such companies now do not pay premiums for employee and national insurance and do not contribute to pension funds.”
The deputy president reportedly called on the government to take action immediately. “We need robust enforcement by the government, otherwise these kinds of companies will ignore court rulings.”
Source: DutchNews.nl
(Quotes via original reporting)
On March 24, the Dutch Supreme Court ruled that riders working for online food delivery service Deliveroo are employees, not self-employed, DutchNews.nl reports.
The legal decision will have an impact across the platform economy.
The verdict is reportedly the culmination of years of legal proceedings. It was brought by the FNV trade union and upholds that of the lower courts. Deliveroo pulled out of the Netherlands last year but the company had argued that its riders were independent contractors because they could pick their own hours and refuse deliveries if they did not want to do them.
The Supreme Court, however, upheld a lower court ruling which said that the delivery workers should be considered to be on the payroll because there was a relationship based on authority and Deliveroo managed their actions via the login system.
While Deliveroo has left the country, the ruling will have implications for similar cases – such as those involving taxi service Uber and temp agency Temper – which are currently before the courts.
FNV deputy president Zakaria Boufangacha said, “The employees are indeed managed and have virtually no say over pay rates and working conditions.
“As a result, they have to pay and arrange their own insurance, days off and pensions. And they don’t do it, because the pay is far too low.”
Mr Boufangacha added that “society is also losing money because such companies now do not pay premiums for employee and national insurance and do not contribute to pension funds.”
The deputy president reportedly called on the government to take action immediately. “We need robust enforcement by the government, otherwise these kinds of companies will ignore court rulings.”
Source: DutchNews.nl
(Quotes via original reporting)