"It does tremendous harm to free and fair competition"

A few months after first anniversary of the Rider Law, approved to force delivery companies to hire their messengers (riders) after multiple convictions for a fraudulent model, Glovo continues to act with self-employed distributors. This fact, like already indicated Uber Eats in the past, generates problems for its competitors who do take advantage of the labor model established by law, they now denounce from Just Eat. Without mentioning the name of Glovo, the general director of Just Eat in Spain has criticized this Tuesday that there is "an operator" who continues to act outside the law. "It does tremendous harm to free and fair competition," warned Patrik Bergareche.

The delivery man who beat Glovo in the Supreme Court: "The company offered me money to leave it before the first trial, but not for a million euros"

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The Rider Law was passed in May 2021, after six years, 18,000 false self-employed detected and almost 50 convictions on the abuse of false self-employed. Convictions, including from the Supreme Court, of Glovo and Deliveroo, for this labor fraud.

Despite the new legislation to expressly tie the labor model in these companies into the legal framework, two companies did not make the transition with its entry into force in August: Glovo and Deliveroo, which kept the delivery people as self-employed. Deliveroo was in the final throes of operation in Spain, because it had already announced that it was leaving the country. Before leaving, he hired the delivery men (assuming the legislation) to fire them and apply an ERE. Thus, Glovo remained the only large company that has clung to operating with freelancers despite the new legislation.

The Spanish company, founded by Oscar Pierre and Sacha Michaud and later acquired at 80% by the German Delivery Hero at the start of 2022, it has defended that it complies with the legal framework because it applied some modifications to its self-employed model invalidated by justice.

After the complaints from unions about the new system, from the Ministry headed by Yolanda Díaz they have always insisted that the Labor Inspection "has a duty to attend to all complaints", so it is understood that it is analyzing this new model. However, almost a year after the entry into force of the Rider Law, the company continues to operate with freelancers.

Just Eat requires sanctions to enforce the law

Even without naming Glovo, the head of Just Eat in Spain has criticized the "only operator" which, in the opinion of the Amsterdam-based company, breaches Spanish law and complicates competition for those other companies that adhere to the labor model . Just Eat has defended the Rider Law in Spain since its negotiation and has taken the lead in the social dialogue with the unions to agree on a collective agreement in the sector.

Patrik Bergareche explained this Tuesday in a meeting with the media that Just Eat already has "more than 1,000 delivery men" directly hired, in what he calls the Scoober service. The head of this delegation, Íñigo Barea, explained that these began with temporary contracts, but now they are indefinite to comply with the new labor reform.

In addition, Just Eat works with two other types of delivery men: those from the restaurants themselves who are in their application and subcontracted couriers. On this last model, based on outsourcing, those responsible for Just Eat have explained that they have appealed the act of the Labor Inspection in Catalonia that considers that it involves illegal transfer of workers.

Bergareche explained that Just Eat has been working with subcontracted couriers for seven years, in which they have been analyzed by many inspections "and they have always come out well". For this reason, the company trusts that the process will be resolved favorably. In the event that the justice considers that outsourcing is not legal, "we will change the model", has maintained the head of Just Eat, to comply with justice.

From Just Eat they have maintained that they trust that "it is a matter of time" that this operator outside the Rider Law complies with the norm, but has insisted that this "has to be solved". The company has contacted the Ministry of Labor to urge it to enforce the rule. “We have asked the sanctioning body and the regulator to take action on the matter”, explained Bergareche.

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