Date
23 November 2021

Tag

Active

Country
Netherlands Netherlands
Geographical scope
National
Type
  • Type

    Employment contract

    Legal
View Court ruling

Description

In February 2021, the Amsterdam Court of Appeal ruled that Deliveroo workers are employees and that they are therefore entitled to paid holiday leave and pension as well as hourly pay according to the haulage-sector collective labour agreement (CLA). The riders filing the lawsuit were supported by the trade union federation FNV (Federatie Nederlands Vakbeweging), which claimed the workers were subject to bogus self-employment. Deliveroo has been appealing the judgment. 

Reasons the court classified the relationship as employment:

  • Deliveroo exercises a high level of control over the delivery process through systems like the 'Frank' algorithm and the GPS tracking of delivery drivers.

  • The payment method is similar to that of an employment relationship, with Deliveroo setting and frequently changing the remuneration unilaterally.

  • The delivery work is considered core work for Deliveroo, indicating a more traditional employment relationship.

  • A large portion of delivery drivers are not viewed as entrepreneurs for tax purposes, indicating the absence of independence typical of entrepreneurs.

Ruling: The Court of Appeal upheld the Subdistrict Court's decision that Deliveroo's delivery drivers work under an employment contract.

Motivation for ruling:

  • High level of control over work execution by Deliveroo.

  • Payment structure and lack of entrepreneurial independence.

  • Work is essential to Deliveroo's business model.

  • Legal presumption of an employment relationship based on the duration and nature of work.


Additional metadata

Keywords
employment status
Actors
Platform, Individual worker, Employee organisation, Court
Sector
Transportation and storage
Platforms
Deliveroo

Sources

Citation

Eurofound (2021), Dutch Court rules in favour of emplyoee status for Deliveroo riders (Court ruling), Record number 2420, Platform Economy Database, Dublin, https://apps.eurofound.europa.eu/platformeconomydb/dutch-court-rules-in-favour-of-emplyoee-status-for-deliveroo-riders-105710.