MADRID – The Ley Rider came into force in Spain today. The law should tackle bogus self-employment at delivery platforms. The largest meal delivery companies have each chosen their own path, but the question is whether they are completely watertight.
The main change with the arrival of Ley Rider is that an employee is assumed to be an employee. This is instead of being a self-employed person. In March, this law was announced by the Spanish government to give workers in the ‘gig economy’ (mainly meal delivery companies) more labour rights. Furthermore, Spain was the first EU country to do so following a landmark legal ruling.
Spanish government makes short work of bogus self-employment
The law aims to tackle ‘false self-employed’ of delivery platforms by forcing these companies to hire employees. This law was approved in May. And after a period of three months, the time that companies had to prepare for this change, the law went into effect today.
The four major food delivery companies in Spain – Deliveroo, Glovo, Stuart, and Uber Eats – each opted for a different approach.
How will delivery platforms continue their way in Spain after Ley Rider?
Deliveroo previously announced they are ceasing their activities and withdrawing from Spain. Furthermore, the company says it would require a “disproportionate investment” to achieve and maintain a high market position in Spain. Therefore, the arrival of the Ley Rider has left thousands of Deliveroo drivers out of work.
Stuart will comply with the new legislation in its own way and uses a flexible business model. Consequently, this means Stuart has hired a large part of his deliverers. Moreover, the company will also use independent delivery drivers hired through another company.
Globo will keep about 80% of its delivery drivers as self-employed after working out a ‘new relationship model’. This is in line with the requirements of the new Ley Rider. However, Uber Eats, on the other hand, will no longer use self-employed people. And, therefore, will outsource the delivery of the meals to specialised delivery companies.
Doubts about the approach Globo and Uber Eats in Spain
However, proponents of the Ley Rider believe that Glovo is trying to circumvent the law in order to continue using self-employed workers. It also questions the legality of Uber Eats outsourcing meal delivery to another company.