Date
24 March 2023

Tag

Active

Country
Netherlands Netherlands
Geographical scope
National
Type
  • Type

    Employment contract

    Legal
View Court ruling

Description

On 24 March 202, in a landmark ruling, the Dutch Supreme Court upheld a ruling by the Court of Appeal that Deliveroo riders were legally employees, not independent contractors. The court applied the "substance over form" principle, which means that the legal classification of a relationship is determined by its actual characteristics, not just by what the parties agree to call it. The ruling by the Supreme Court is based on article 7:610 DCC. The provision of a mandatory law defines what qualifies an employment relationship and part of the spirit of the law is indeed to stop bogus self-employment. The supreme court also considered if there was a need to create new law concerning the definition of an employee/employer relationship, and determined that there was no need, as this topic is currently being worked on by legislators at the national and European level.

Timeline of events: Trade union FNV began the judicial process in 2018, filing a claim that Deliveroo riders were entitled to standard employee rights (e.g., sick pay and dismissal procedures), invoking article 7:610 DCC. FNV union has called on the Dutch Parliament to intervene to ensure all workers' rights for food delivery couriers in the Netherlands. In January 15, 2019, the "kantonrechter te Amsterdam" (Cantonal Court of Amsterdam) delivered a judgement in case 7044576 CV EXPL 18-14763 ruling in favour of the FNV's primary claim that the Deliveroo delivery workers were employees, and not self-employed contractors. In February 16, 2021: The "gerechtshof Amsterdam" (Court of Appeal of Amsterdam) delivered a judgement in case 200.261.051/01. The Court of Appeal conducted a more detailed analysis, using the following key elements (2.4.2):

*–     "Arbeid" (Work): Whether the delivery workers were performing work.

*–     "Loon" (Wage): Whether they were receiving payment for their work.

*–     "In dienst van" (In service of): Whether they were working under the authority and control of Deliveroo.

*–     "Gedurende zekere tijd" (For a certain period of time): Whether the work was performed over a sustained period. The Court of Appeal applied the Haviltex criterion, which involves interpreting the rights and obligations agreed upon by the parties based on the circumstances of the case.

The court looked at the following elements to establish whether an employment relationship was in place:

*–     The degree of control Deliveroo exerted over the riders, which included factors like: the use of algorithms to assign tasks and manage workflow; the ability to track riders' locations and performance; the setting of performance standards and the use of ratings.

*–     The degree of integration of the riders' work in Deliveroo's core business. The Court established that food delivery was a fundamental part of Deliveroo's business.

*–     The degree of economic dependence on the platform, with many riders relying on Deliveroo for their primary income.

*–     The lack of entrepreneurial risk, as riders were paid per delivery.

The Advocate General has issued a 125 page ‘advisory opinion’ since this case, providing contextual information as well as barriers to accurately classifying this on-location platform-determined work. In particular, the report recommends the criterion, ‘control’, must have new standards which are fit-for-purpose. The term ‘organisationally embedded’ is introduced to help define if a worker is part of company’s core activities. If affirmed, that would aid in meeting the criteria ‘control’. Another significant contribution is the recommendation that someone being in low-paid and low-skilled work is an important factor which must be taken into account when considering whether they have negotiated rights and obligations, or whether these have been unilaterally determined by the work provider.


Updates (1)

The following recent changes to this court ruling have been recorded.

19 March 2025

https://corporate.deliveroo.co.uk/investors/news/deliveroo-announces-decision-end-operations-netherlands/

Additional metadata

Keywords
social protection, representation, industrial relations, social dialogue, taxation, employment status
Actors
Employee organisation, Court
Sector
Transportation and storage

Sources

Citation

Eurofound (2023), Supreme Court of Netherlands rules in favour of Deliveroo couriers as employees (Court ruling), Record number 4262, Platform Economy Database, Dublin, https://apps.eurofound.europa.eu/platformeconomydb/supreme-court-of-netherlands-rules-in-favour-of-deliveroo-couriers-as-employees-110025.