Fair Work’s most senior members said a High Court precedent meant they must “close our eyes” to the gig work reality that indicates an employment relationship.
The workplace tribunal has overturned a ruling that a Deliveroo rider was an employee in light of a High Court precedent boosting freedom to contract, despite finding the nature of the rider’s work meant he would be an employee., has all but cleared the gig economy to engage workers as independent contractors based on their contract terms rather than the “reality” of their work.Rhett Wyman
“As a matter of reality, Deliveroo exercised a degree of control over Mr Franco’s performance of the work, Mr Franco presented himself to the world with Deliveroo’s encouragement as part of Deliveroo’s business, his provision of the means of delivery involved no substantial capital outlay, and the relationship was one of personal service,” the bench said.“These matters, taken together, would tip the balance in favour of a conclusion that Mr Franco was an employee of Deliveroo.
However, the Transport Workers Union called for “urgent reform”, including by extending unfair dismissal rights to workers not deemed employees and establishing minimum rates for all transport workers. The bench said if Mr Franco had been an employee he would have been unfairly dismissed, as Deliveroo lacked a valid reason and “undeniabl[y]” failed to afford him procedural fairness.
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