8 November 2018

The German parent of collapsed food delivery company Foodora Australia is offering to pay back less than half the wages, superannuation and tax bill claimed by creditors including workers and the Tax Office.

...Delivery Hero has proposed a deed of company arrangement under which it will pay $3 million.

...The administrator estimated workers had been underpaid [AUD]$5.5 million based on its conclusion "that it is more likely than not that the delivery riders and drivers should have been classified as casual employees instead of contractors".

...The Transport Workers Union said...it would put pressure on Delivery Hero to fully pay its Australian riders and "ensure riders in other countries had rights".

...Foodora...went into voluntary administration...is still fighting an alleged unfair dismissal case in the Fair Work Commission on behalf of former Foodora delivery rider...The...case could help set a precedent for whether food delivery riders are really employees entitled to legal minimum rates of pay, conditions and protections against unfair dismissal under the Fair Work Act...