Penal Code reform in the state clearly aims to criminalize the use of fake freelancers. In plain terms, companies that treat workers as employees for tasks they actually perform may face imprisonment. The penalty ranges from six months to six years, plus a fine between six months and twelve months. The practice of declaring workers as self-employed to lower costs is a tactic some firms use to gain flexibility, since the worker covers the social security contributions themselves.
“This is a tailored suit for Glovo,” several labor lawyers noted. Yet any company that applies this model and is identified by the Labor Inspectorate will face penalties with a long track record, notably in meat processing sectors. Yolanda Díaz, the second vice president and Minister of Labor, has indicated discussions with prosecutors to hold companies accountable for new platform labor rules approved in 2021. Critics warn that this rider law will be pursued and that noncompliant firms could challenge the social and legal order in Congress toward the end of September.
Now these statements are taking shape in amendments presented to Congress on Friday by the PSOE and United We Can. Sources from the governing party’s left wing admit that the amendment to Article 311 of the penal code was crafted by Díaz’s department. The clause addressing crimes against workers’ rights has opened the door to prosecuting abuse, especially when self-employed arrangements are used to misrepresent employment relationships. Legal sources consulted acknowledge the difficulty of categorizing this practice as a criminal offense, since the criminal framework has historically targeted informal economic violations rather than modern platform work models.
The government supports prison terms of up to six years for repeat violators of labor laws.
Three provisions add to the proposed changes and will still need to pass through the parliamentary process. The penalties of up to six years in prison will apply to those who impose unlawful conditions on workers by using arrangements unrelated to the employment contract or who breach obligations or administrative sanctions in a criminal manner.
Enforce the ‘driver law’
“It was the missing complement that the rider law lacked,” says a source from the industry. So far, one of the key measures promoted by the Department of Labor remains largely on paper, as two of the three major delivery platforms have resisted full adoption. Most of Glovo and Uber Eats fleets rely on self-employed drivers, despite repeated sanctions from the Labour Inspectorate. Glovo, in particular, faced substantial penalties and paid well over 100 million euros to public coffers in recent years.
The platforms argue that the worker patterns drawn into penalties stem from past practices. After each sanction they adjust algorithms and organizational structures to align with the law. Courts have not yet ruled on many of these cases, with some appeals and delays extending for years. Several proceedings from 2020 to 2023 remain unsettled or have been dismissed by the judiciary for various reasons, and some decisions linger in high courts that have yet to issue a ruling.
That is the impetus for the second part of the proposed change: to shield firms from additional requirements or administrative sanctions. The government is pressing on with the persistence of large platforms, such as Glovo, in maintaining the workforce model despite prior judicial and inspection disruptions. Delays in penalties keep thousands of delivery workers in the fraudulent self-employed category, while other firms consider switching to the same model to cut labor costs. Uber Eats, for example, began complying with the rider law through a subcontractor fleet and recently resumed working with freelancers, arguing that the move is necessary to compete with Glovo.