Philippines: Arbitration body says riders are employees of delivery service co.; reinstates bigger compensation scheme
"Cebu riders win case vs. food delivery firm", 13 October 2024
Members of the Union of Food Delivery Riders (RIDERS-SENTRO) are celebrating their achievement against a multinational food delivery service company.
A key point of the ruling establishes that the company and its riders indeed have an employer-employee relationship, which contradicts the company’s classification of riders as independent contractors.
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The complaint was made after the company reduced the base fee from P55 to P25 without considering the riders’ opinions.
Therefore, the company is mandated to reinstate the compensation scheme used from 2018 to 2020, which is a P55 base fee plus P20/P10/P5 batching incentive, as the basis for computing the complainants’ fees.
In addition, the company must pay P7,432,934.25, representing the reduction in delivery fees, to the complainants.
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As delivery riders, they shared that the reduction has heavily affected their livelihoods, as they barely earn anything for themselves on top of the costs of maintaining their vehicles, gas, and more.
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[Lawyer Tepi Claros] said that this development is a step towards achieving the goal of giving the riders tenure in their positions and for the development of their work as a formal sector.
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