15 November, 2017
In a key legal ruling the Central Arbitration Committee (CAC), which is a body who resolve workers disputes, has ruled that the Deliveroo riders are deemed to be self-employed contractors under their new contracts that allow the riders to substitute other riders for their delivery obligations.
The change in the Deliveroo contracts which allow the rider to bring in someone to cover their work and therefore not personally required to undertake the work is a key indicator of being self-employed rather than an employed worker.
By moving the contracts away from the legal requirements of worker status and towards the substitution of riders the CAC were able to find the riders to be self-employed and not workers entitled to national minimum wage and holiday pay and central to this ruling union recognition.
It is the latest in a number of high profile cases which are set to continue where the gig economy is testing the legal boundary between worker and self-employed contractor and trying to keep the riders as self-employed.
The issues between flexibility and workers’ rights; employment and self-employment is set to continue. This is just the latest way in which the Deliveroo is evolving its business model so that it can be delivered by self-employed riders on the basis of this ruling.
The story is far from over.