Spain: Food delivery app Glovo fined $62 million for violating labour laws

The app-based food delivery startup Glovo has been hit with a fresh fine from Spain’s labour ministry of 57 million euros ($62 million) for breaking labour laws, the agency announced on Tuesday (January 24). Glovo, which is owned by the German company Delivery Hero, received a penalty for not providing its riders with proper employment agreements as required by a 2021 legislation and for hiring roughly 800 undocumented immigrants without work licences.

The so-called Rider Law, which went into effect in August 2021, requires that couriers who transport food, typically on bicycles and motorcycles, be recognised as workers rather than being treated as independent contractors as they were previously.

It is an important element of European legislation that specifically governs the condition of delivery workers, who commute on motorbikes and bicycles and whose numbers have increased recently despite hazardous working conditions.

Also watch | Spain: PM Pedro Sanchez accused of undermining the constitution, capital rocked by protests

Yolanda Diaz, the minister of labour said that “no company, no matter how big or small, should remain outside the law.”

Glovo in response stated that it will appeal the latest fine. It claims the infractions mentioned by the labour ministry occurred before the Rider Law went into effect.

(With inputs from agencies)

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