Thursday, September 29, 2022

No rider employee contract, Spain fines Glovo €79m

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Spain is serious. Just a year after a law requiring delivery companies to hire passengers as employees went into effect, the Labor Department has already imposed its first maximum fine. Coming to the crosshairs was Glovo, a company created among others in the country of Iberia and now managed by a German delivery hero.


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Local media reports put the fines at €79 million and related to inspection activities that other big names in the industry, such as Uber Eats, would have sought. sever the relationship between the rider and the intermediary; Thanks to the investigation, Reuters reports, inspectors have confirmed that as many as 10,600 couriers between Barcelona and Valencia were not hired by Glovo, according to supposed regulations.

Fines also include the portion used to cover philanthropic contributions that the company does not pay. Spain’s Labor Minister Yolanda Diaz told reporters in Madrid that Glovo “violates basic workers’ rights” and “for this reason action is being taken against the company”. said. The company has already announced it will appeal, declaring that it has favorable factors that would not have been considered by the inspector.

EU Directive

Spain is leading the European battle against the world’s precariat of so-called “gig workers”. At the end of 2021, the European Commission will also present proposals for a less clear directive than Madrid’s, which would set out a set of criteria for identifying whether precarious workers on his platform online are subordinate employees. did. The Brussels document is now on the negotiating table with Member States, but work is progressing slowly.

According to a European Commission study, there are currently around 500 platforms in the EU. If these platforms paid all their employees as employees, these companies would have to pay around €5 billion more per year. Of these, about 4 billion relate to social security contributions and other labor taxes. The study also notes that between 2018 and 2020, revenue from digital platforms in the EU increased from €8 billion a year to €14 billion he said. Over the same period, however, spending on workers remained largely unchanged at $6 billion a year. Especially in the shipping department he quadrupled his profits. Although he made $8 billion in profit in 2020, he paid only $1 billion to his passengers.

Source: Today

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