Food delivery giant Deliveroo is being sued by one its former workers in a case that could have major ramifications for the gig economy, which includes its rivals Uber Eats and Menulog.
Food delivery giant Deliveroo is being sued by one its former workers in a case that could have major ramifications for the gig economy.Under Australian law, contractors are not entitled to many benefitsThe company is accused of exploiting its bicycle couriers by failing to pay the minimum wage, penalty rates and superannuation.
Under Australian law, contractors are not entitled to those benefits as they are treated as self-employed people, running their own businesses. When asked why he continued to work for Deliveroo, he said:"I don't have a choice. I've been applying for at least 100 new jobs — and I don't speak good English."The outcome of the Deliveroo case will turn on how much control the company has over its contractors, according to Sarah Kaine, a gig economy expert from the University of Technology, Sydney.
"Deliveroo riders in Australia work 15 hours a week, earning over $22 per hour on average, fitting riding around study, hobbies, caring responsibilities or other work," the company said.Deliveroo has a policy of ranking its riders in a hierarchy or"Priority Groups" every fortnight — a system that sorts them into three groups, 11:00am, 3:00pm and 5:00pm.
The riders are sorted according to who works the most"super-peak hours" and makes the most deliveries. Riders are penalised for showing up to work late and cancelling too many jobs.
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