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Deliveroo, the British online food delivery company founded in London, England, in 2013, was fined by a court in France after being found guilty of riders’ rights abuse. The sentence was handed down by a French court on Tuesday, April 19.
As per Reuters, the court decision also includes a suspended one-year prison term for two former bosses of Deliveroo. They were also asked to pay €30,000 or around $32,380 in fine.
Furthermore, the court ruled that the company itself must also be fined with a maximum penalty of €375,000 or about $404,625 in US dollars. Deliveroo was given these penalties for the abuse of the freelance status of riders who are working for the company’s delivery platform.
The French court also ordered Deliveroo to post the court decision on the company’s website, and it should not be removed for one month. It was said that the ruling may resonate outside of France as many similar work setups via digital apps also face court challenges for the work conditions of self-employed workers.
In any case, with the court’s decision, Deliveroo responded through a statement that it would "categorically contest" the ruling of the French court and already considering if they would appeal. The company went on to clarify that despite the guilty verdict and penalties, it will continue to operate in the French market. It added that the court’s decision was based on the early version of the company’s operating model and had no effect on how 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,” the company stated. “Deliveroo will continue to operate with a model that offers these independent providers a flexible and well-paid business."
Meanwhile, France24 reported that the case stemmed from the case filed by Deliveroo’s former riders against the company. They have sued the delivery firm for allegedly abusing their freelance status.
In addition, the riders said that Deliveroo should have hired them as regular employees rather than freelancers. In France, there is a law for employee status grants rights, and it includes social security, pension contributions, and unemployment benefits.
