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Article

24 Jun 2021

Author:
Ivan Levingston & Ellen Milligan, BloombergQuint

UK: Court of Appeal rules that Deliveroo riders are self-employed

"Deliveroo Jumps After Court Rules its Drivers are Self-Employed", 24 Jun 2021

Deliveroo Plc got a much needed boost after a U.K. appeals court ruled its riders are self-employed, bolstering the viability of its labor model after rival Uber Technologies Inc. lost a similar case earlier this year. Deliveroo’s shares in London jumped after the ruling. The company’s reliance on gig workers drew criticism from investors and riders in the run-up to its disappointing March initial public offering. The company said Thursday’s unanimous court decision dismissing an appeal from the IWGB labor union affirmed its aim to offer couriers full flexibility.

“U.K. courts have now tested and upheld the self-employed status of Deliveroo riders four times,” the company said...

The decision comes months after the U.K.’s Supreme Court ruled that Uber’s drivers must be treated as “workers,” a legal status that gives people rights such as a guaranteed minimum wage and paid vacation time. That ruling was largely based on the control Uber exerted over its drivers, including their ability to log them out of the app...

The appeals court considered the Uber ruling but decided that it wasn’t relevant to this case. The Deliveroo suit is concerned with riders’ ability to unionize, while Uber’s case was focused on the worker rights drivers were entitled to under U.K. employment law...

The IWGB said it would continue to evaluate its legal position and work for collective representation at Deliveroo.