Delivery firm Deliveroo has claimed a victory for its riders who want the flexibility of being self-employed rather than classed as “workers”.
In the latest case involving the employment rights of workers in the gig economy, Deliveroo said the self-employment status of its drivers had been confirmed.
The company said a ruling by the Central Arbitration Committee (CAC) was an “important step forward” in the ability of drivers to work flexibly.
The CAC, which considers union recognition and collective bargain cases, rejected an application by the Independent Workers Union of Great Britain to represent drivers in parts of north London, according to Deliveroo.
Dan Warne, Deliveroo’s managing director for the UK and Ireland, said: “This is a victory for all riders who have continuously told us that flexibility is what they value most about working with Deliveroo.
“We welcome the decision of the committee. As we have consistently argued, our riders value the flexibility that self-employment provides.
“Riders enjoy being their own boss – having the freedom to choose when and where they work, and riding with other delivery companies at the same time.
“As set out in our submission to the Government’s Taylor Review, we want employment law to be changed so we can provide more security to our riders – such as offering injury pay and sick pay – whilst maintaining the flexibility they value.
“We want to work with Government to update legislation and end the trade off between flexibility and security.”
Taxi firm Uber last week lost an appeal against an employment tribunal ruling on the status of employees, after two drivers argued they were “workers” and entitled to the minimum wage, sick pay and paid leave.
Uber lost its challenge at the Employment Appeal Tribunal, but announced it will appeal, saying almost all taxi and private hire drivers have been self-employed for decades, long before its app existed.
IWGB general secretary Dr Jason Moyer-Lee said: “Despite the CAC’s finding that a majority of the riders in the bargaining unit would likely support union recognition for the IWGB, it seems that after a series of defeats, finally a so-called gig economy company has found a way to game the system.
“On the basis of a new contract introduced by Deliveroo’s army of lawyers just weeks before the tribunal hearing, the CAC decided that because a rider can have a mate do a delivery for them, Deliveroo’s low-paid workers are not entitled to basic protections.”