Deliveroo loses ‘unfair dismissal’ dispute in Australia

A food delivery worker riding his bike on his way to a deliver an order in Sydney, Australia. In the judgement published May 18, the Fair Work Commission said that Diego Franco ‘was an employee of Deliveroo, and he was dismissed unfairly’. — AFP

LONDON: Food delivery firm Deliveroo on May 18 lost a dispute with one of its riders in Australia, as a government body said he had been the victim of “unfair dismissal” for riding too slowly.

By classifying him as an employee, the decision could have knock-on effects for all of the group’s delivery riders, who it currently classifies as independent workers with fewer rights than full-time staff.

In the judgement published May 18, the Fair Work Commission said that Diego Franco “was an employee of Deliveroo, and he was dismissed unfairly”.

“Orders for his reinstatement, continuity of service, and to restore lost pay shall be made,” the commission added.

Franco had requested an injunction and compensation from the commission in May 2020 after being fired at the end of April.

The Australian decision is the latest setback for Deliveroo, whose London stock market debut was marred as investors shied away from its model employing riders as independent workers, which is under legal threat in many countries.

Spain’s left-wing government last week agreed reforms to the country’s labour code to give all food delivery workers for applications like UberEats and Deliveroo employee status.

Deliveroo makes half of its revenue in Britain and Ireland, but is also present in other countries including France, Spain, Australia and Singapore. – AFP