Deliveroo calls for a balance between flexibility and benefits for riders
On-demand delivery specialist Deliveroo has called for changes in the UK’s employment laws and workers classification system. As previously reported, there has been considerable debate about whether riders for “gig economy” companies like Deliveroo should be classified as “self employed” or “workers”.
At the moment they are classified as “self-employed”, which means they do not have an automatic right to sickness and holiday pay and they are not covered by minimum wage rules.
On the other hand, they do have more flexibility.
Deliveroo riders can work the hours that they want and they also have the freedom to work for other on-demand economy companies at the same time. If riders were reclassified as “workers”, they would lose this flexibility.
According to reports, Deliveroo would like to see a change in the way people are classified, breaking down the rigid demarcation between self-employed and workers.
It has been proposed that creating a new category of “gig workers” might be a way forward.
Deliveroo has reportedly said that it would offer benefits like sick pay to its riders, if changes to the law are made.
However, the GMB union sent a statement to Post&Parcel today arguing that the “current legislation is more than adequate for protecting workers – as long as it is properly enforced”.
Maria Ludkin, GMB legal director, said: “The only people who think the law is out of date are the companies like Deliveroo, who are trying to subvert the law and exploit workers.
“The law, when properly enforced, does the job of ensuring working people are paid national minimum wage and given the most basic employment rights.”
UPDATE
Deliveroo has now sent a statement to Post&Parcel which sets out its position:
“Deliveroo has today made a key intervention in the debate on the future of work. In its submission to the Matthew Taylor review on modern employment practices, the technology company outlines how the Government should update legislation to give self-employed people greater security whilst maintaining the flexibility they want.
“Current employment law prevents on-demand companies from extending some of the entitlements that are open to ‘workers’ without calling into question the status of its riders, who are self-employed. Doing so would undermine the flexibility that comes with riders being able to log in and log off at will, where they are paid according to work not hours completed. If riders were reclassified, they would be required to work in compulsory sessions arranged with Deliveroo in advance and to work exclusively for the technology company during those sessions.
“Deliveroo is calling for a change in employment law that would allow it to offer new benefits to its riders, for example sick pay, insurance or shares for longstanding riders. Deliveroo argues that this should be compatible with the highly flexible nature of the on-demand economy, protecting flexible working. This would be a significant shift in UK employment practices.
“Commenting, Deliveroo CEO and founder Will Shu said: ‘When I founded Deliveroo four years ago, I was the only rider delivering to customers all over London.
‘I still do deliveries every week so I know better than anyone the hard work that Deliveroo riders put in every day. It’s only right that they’re given the security they deserve whilst keeping the flexibility that they value.
‘The on-demand economy has changed the way people work and live. We want an environment in which both workers and businesses benefit from the opportunities these changes provide.
‘We welcome the Taylor Review and the opportunity to work with government to create legislation which suits the needs of a 21st century workforce in a 21st century economy.’”
