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UK: Govt. commissioned report calls on Deliveroo to pay living wage; co wants 'charter' offering riders more benefits without risking self-employed status

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24 July 2018

Deliveroo under pressure to guarantee its riders at least £7.83 an hour

Author: Shona Gosh, Business Insider

Fast-growing food delivery startup Deliveroo should guarantee its riders the national living wage of £7.83 ($10.27), according to a damning report from Labour politician Frank Field. Field found that Deliveroo paid some riders as little as £2 or £3 an hour... The lawmaker was strongly critical of Deliveroo's model, which is reliant on a "continued oversupply and underutilisation of workers" to fuel its growth... Deliveroo said Field's proposal would "remove flexibility," which it said riders value. It also denied maintaining an oversupply of riders... A Deliveroo spokesman responded: "Deliveroo believes more can be done to increase the security for riders while protecting their ability to be their own bosses... [W]e ... have called on the government to update employment rules to end the trade-off between flexibility and security..." [T]he company made a call for a government-sanctioned "charter," potentially enshrined in law, that would allow it to offer certain benefits to employees with risking their self-employed status...

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23 July 2018

Delivering justice? A report on the pay and working conditions of Deliveroo riders

Author: Frank Field and Andrew Forsey

[T]here is a need for the Government to reform employment law, and enforce it much more robustly, with the objective of introducing greater security for workers without compromising the flexibility of their work... The aim of this inquiry [...] was to look closely at the trade-off between flexibility and job security that exists among Deliveroo riders, as well as the consequences of this trade-off for their pay, working conditions, and basic economic and social rights... We report here on the findings that emerged from this evidence and conclude with a series of recommendations which seek to maintain the flexibility that riders enjoy while introducing greater security through a series of reforms that guard against those factors which pose the most severe risks to riders’ living standards...

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23 July 2018

Deliveroo proposed a 'charter' to make its workers' rights problem go away

Author: Shona Gosh, Business Insider

Food delivery service Deliveroo is proposing a "charter" that would outline what benefits an on-demand company could give its contractors without risking their self-employed status... The charter, according to Deliveroo, would allow the company to offer more benefits to its riders as well as the flexibility of gig economy work. It might also make the problem of expensive litigation over workers' rights disappear... 

Deliveroo would want the charter, sanctioned by the government, to outline some of the following benefits:

  • Accident and third-party liability insurance.
  • Funds for time off or holidays.
  • Training in areas such as health and safety, educational qualification, or life skills.

Deliveroo is proposing the charter as a response to a government-commissioned report, the Taylor review, into gig economy work...

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