[France] Court fines Deliveroo €30,000 for abusing workers’ freelance status

Two former Deliveroo bosses received suspended one-year prison sentences and fines of €30,000 euros ($32,380) from a French court on April 19, for abusing the freelance status of riders working for the British delivery platform, France 24 reports.

In addition, the company itself was fined the maximum penalty of 375,000 euros ($404,625).

The ruling against Deliveroo may have repercussions beyond France because it comes at a time when the gig economy - largely reliant on digital apps and self-employed workers - faces a number of court challenges that may redefine working conditions.

In a statement, Deliveroo said that it "categorically contests" the French court's ruling and was considering whether to appeal. It said that it intends to maintain operations in the French market.

Deliveroo’s statement said the court decision referred to an early version of its operating model and had no consequences for the way it operates today.

"Our model has since evolved in order to be more in line with the expectations of our delivery partners, who want to remain independent ... Deliveroo will continue to operate with a model that offers these independent providers a flexible and well-paid business," the company said.

Former riders have reportedly sued Deliveroo for alleged abuse of their freelance status and claim the company should have hired them as employees.

Under French law, employee status grants rights, including unemployment benefits, social security and pension contributions. France, after Britain, is the second-largest market for Deliveroo, operating in more than 200 cities with restaurant partners.

Since its London launch in 2013, Deliveroo has expanded into towns and cities across Europe, Asia, Australia and the Middle East.

But at times it has been criticised for its reliance on freelance couriers and many believe the so-called "gig economy" workers should be considered employees.

Ordinarily, such couriers are freelance workers who have frequently fought for a guaranteed number of hours' work and other benefits.

Source: France 24

(Links and quote via original reporting)

Two former Deliveroo bosses received suspended one-year prison sentences and fines of €30,000 euros ($32,380) from a French court on April 19, for abusing the freelance status of riders working for the British delivery platform, France 24 reports.

In addition, the company itself was fined the maximum penalty of 375,000 euros ($404,625).

The ruling against Deliveroo may have repercussions beyond France because it comes at a time when the gig economy - largely reliant on digital apps and self-employed workers - faces a number of court challenges that may redefine working conditions.

In a statement, Deliveroo said that it "categorically contests" the French court's ruling and was considering whether to appeal. It said that it intends to maintain operations in the French market.

Deliveroo’s statement said the court decision referred to an early version of its operating model and had no consequences for the way it operates today.

"Our model has since evolved in order to be more in line with the expectations of our delivery partners, who want to remain independent ... Deliveroo will continue to operate with a model that offers these independent providers a flexible and well-paid business," the company said.

Former riders have reportedly sued Deliveroo for alleged abuse of their freelance status and claim the company should have hired them as employees.

Under French law, employee status grants rights, including unemployment benefits, social security and pension contributions. France, after Britain, is the second-largest market for Deliveroo, operating in more than 200 cities with restaurant partners.

Since its London launch in 2013, Deliveroo has expanded into towns and cities across Europe, Asia, Australia and the Middle East.

But at times it has been criticised for its reliance on freelance couriers and many believe the so-called "gig economy" workers should be considered employees.

Ordinarily, such couriers are freelance workers who have frequently fought for a guaranteed number of hours' work and other benefits.

Source: France 24

(Links and quote via original reporting)