Both the victorious company, Deliveroo, and the Transport Workers Union said the ruling showed why the federal government’s reform process was needed. auspol
Gig economy companies have been cleared to keep classifying their riders as independent contractors rather than full employees entitled to minimum wages and protections following a major ruling by the nation’s industrial tribunal.
The Fair Work Commission on Wednesday overturned a previous ruling that a Deliveroo rider, Diego Franco, was an employee and protected from unfair dismissal. Had the ruling stood, it would have likely forced Deliveroo to make massive back payments to its riders and upended the gig economy sector, which also includes firms such as Uber, DoorDash and Menulog.
Those terms, which allowed Franco to have other riders substitute for him, let him choose his own route to the customer and required him to provide his own vehicle, made him a contractor. Firms such as Deliveroo and Uber, which declined to comment, use contractors who do not getor unfair dismissal rights. They do provide insurance for their riders.
"Deliveroo believes the time has come for the discussion to move beyond the status of riders," a Deliveroo spokeswoman said. "There is now clear certainty that our riders are genuinely engaged as independent contractors."
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