glovo He has to pay 79m euros to fraudulently employ the fake self-employed To 10,614 distributors in Barcelona and Valencia. This is the largest sanction ever imposed by the Labor Inspectorate on the home delivery company founded in the Catalan capital and now owned by the German giant ‘Delivery Hero’. ‘Business police’ think it’s proven Glovo’s organizational model breaks the law for the purpose of recording payments in the vault Social Security and, as La Ser progresses and El Periódico confirms, it’s undermining the working conditions of deliverers. These two performances in Barcelona and Valencia are the result of a macro operation developed in this way throughout Spain, leaving its first minutes in Girona, Lleida and Tarragona.
Specifically, in Barcelona, Inspection accredited 8,331 ‘riders’ and claimed 63.2m euros – between sanctions and unpaid fees; and Valencia with 2,283 ‘riders’ and a €15.75 million requirement. Sources familiar with the proceedings state that the labor police imposed an additional sanction on the following individuals. hinder inspection work 2,500 euros. It’s not the first time Glovo has deliberately blocked its inspection mission, and this year it’s already saving up to 14,000 euros for it.
Since its inception (in 2014), Glovo has challenged the view by judges (including the Supreme Court) and labor inspectors that delivery workers should be employed as salaried workers, not self-employed. Despite fines of more than 20m euros so far imposed by the inspection and the new ‘Equestrian Law’, which came into force in August 2021 and clearly identifies deliverers. must be paid unless the company proves otherwise. Glovo’s current fleet is around 16,000 soldiersAccording to industry sources, and only about 2,000 – located in the supermarket section – are hired.
However, on the pulse between Labor and Glovo, the pace of the Labor Inspection works in Glovo’s favour. The known penalties in Barcelona and Valencia this Wednesday refer to actions before the new ‘Equestrian law’. and about them possibility of recourse Despite this, the company, which continues to work with freelancers, is in front of the courts, which will delay the final payment. A large number of distributors involved in these processes delay the closure of processes. “We’re not going to give up on the Department of Labor, they’re going to abide by the law,” vice-president Yolanda Díaz said in the corridors of Congress.
unfair competition
So far, Glovo has incurred the cost of challenging judicial decisions and continued to work with fake self-employed workers to gain market share from competitors. Working with freelancers allows Glovo to have larger delivery fleets because they only pay for the services they perform and don’t have to transport contributions while they’re not working, but also pay them vacation or sick leave. Larger fleets more orders and faster serviceresults in a better service for the end customer, at the expense of supplier conditions.
This gives it an edge over competing companies like Uber Eats or Just Eat, which initially decided to comply with the law. At first, they saw what it was like to disdain Glovo from Uber Eats. immediate consequences and they decided to go back to working with freelancers to challenge this market share on equal terms.