Deliveroo’s share price soars after court makes riders self-employed

Deliveroo courier rides along Regent Street to deliver takeaway food in central London during the Covid-19 Tier 4 time limit.

Pietro Recce | SOPA Images | Light Rocket via Getty Images

London — shares in a British food delivery company Deliveroo More than 4% surge on Thursday British court ruled The courier is self-employed.

The Court of Appeals decision was issued after the British Independent Trade Union appealed against the previous decision. This is the fourth time the court has ruled that Deliveroo riders are self-employed. AmazonA support company that has fought for years to continue to classify riders as independent contractors.

Deliveroo’s share price on the London Stock Exchange rose from £ 2.51 to around £ 2.64 following a court ruling by three unanimously agreed judges.It will come later Deliveroo inventory has been put into the tank Market debut in March.

This is the latest development in a series of regulatory battles over the so-called gig economy platform.Earlier this year, the British Supreme Court Domination Uber’s group of drivers was workers, not independent contractors.After that, Uber Reclassify all UK drivers as workers, Has led to speculation about how other gig economy apps could be affected.

A Deliveroo spokeswoman said the decision was an important milestone for the company.

“The message to the rider is clear,” they said. “We will continue to uphold your right to work the way you want, listen to you, and respond to what is most important to you.”

“The Deliveroo model offers true flexibility, compatible only with self-employment, and gives riders the work they say they value,” they added. “Campaigns to reduce rider flexibility do not speak to the majority of riders and try to impose undesired ways of working.”

Some Deliveroo riders argue that they need to be classified as employees. This will allow you to take advantage of benefits such as sickness allowances, holiday allowances and hourly wages.

However, Deliveroo argues that the contractor model is better because it gives the rider the flexibility to do as much work as he wants, when he wants.

According to Deliveroo, there was a flood of people wanting to register as riders during a coronavirus pandemic, with up to 16,000 applications per week across the UK.However, some Deliveroo riders Told CNBC When the coronavirus pandemic began, they were struggling to make enough money to survive.

In a statement, IWGB president and former courier Alex Marshall said that during the pandemic, Deliveroo courier companies are working under increasingly unfair and dangerous working conditions.

“What rewards did they receive for their Heracles efforts? Deliveroo continues to invest thousands of pounds in proceedings to silence workers and deny them the opportunity to negotiate better terms. “There is,” he said. Research journalism reveals that riders earn only £ 2 an hour.

“Is this the kind of paid worker they accept if they are really their boss? When Deliveroo talks about flexibility and being your own boss, when it raises poverty wages and in dangerous situations The ruling seems to be talking about the flexibility to choose to work, admitting that riders will benefit from collectively organizing to represent their interests, and the conclusions reached in the ruling I admit that it may seem counterintuitive. “

Independent Experts Association and self-employed people have a gig economy “Unacceptable confusion.

“British law clearly defines the status of workers and employees, but urges the government to eliminate the turmoil in the gig economy that results from the fact that the status of self-employed people has not yet been defined.” Andy said. In a statement, Chamberlain, IPSE Policy Officer.

“The only way to solve this is to write a statutory definition of self-employment in English law, which not only secures the rights of those who should be properly classified as workers, but also legally self-employed. It also protects the freedom of business. People. “

— Additional report by Ryan Braun on CNBC.

Deliveroo’s share price soars after court makes riders self-employed

Source link Deliveroo’s share price soars after court makes riders self-employed

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