The recent regression in the business model used by the digital home delivery platform has led Glovo to face substantial penalties. Glovo was fined a total of 9.3 million euros for the fraudulent use of 1,296 delivery workers from Zaragoza who were treated as self-employed contractors. This Labor and Social Security Audit (ITSS) identified the practice and, in a second action, fined the company for not properly hiring these riders during a three-year investigation (from March 2018 to March 2021). Information on the case was reported by El Periódico de Aragón, a newspaper of the Prensa Ibérica group. Glovo has announced intentions to appeal the decision in court.
In particular, the labor authorities claim that Glovo owes 6,056,000 euros for workers not registered with the General Regime; 3,203,000 euros for Social Security contributions; and additional penalties for non-payment of social security. These figures were added to a prior 78.9 million-euro penalty already imposed by the Labor Inspectorate in Aragon. In Barcelona and Valencia, an additional 10,614 riders were identified as fake self-employed workers according to reports from the chain on Wednesday.
Record fine for Glovo: 79m euros for employing 10,000 fake self-employed in Barcelona and Valencia
Demonstrations in the three cities accompanied a broader crackdown, described as a macro operation, with other actions in Madrid where Glovo is estimated to employ around 5,000 riders. The total violations and penalties are still being tallied, and this marks the largest labor-inspection punishment to date aimed at the home-delivery sector. Glovo, originally founded in Barcelona and now part of the Delivery Hero group, faces ongoing scrutiny over how its organizational model impacts social security payments and working conditions for delivery personnel.
Five-year fine and sentence
The violations reported in Zaragoza were noted in May this year. The period studied predates the Rider Law, enacted after a major labor-inspection push, and became effective in August 2021. That law tightens rules around self-employed work in the sector. Consequently, the penalties assessed for those pre-law violations are not tied to the new rider regulations. Since then, Glovo has adjusted parts of its working model, yet unions say a large portion of delivery workers are still not hired as employees.
Glovo was the first major digital platform for bike- or motorcycle-based home delivery in Aragon, launching in Zaragoza about six years ago. This city was also where the company first obtained certification to use employees for delivery; earlier cases identified that some workers did not meet self-employment requirements. In a prior investigation, the Labor Inspectorate fined the firm 379,963.09 euros after eight months, covering 329 riders from July 2017 to March 2018.
Actions Against Uber Eats and MyPoppins
The initial case helped set a legal precedent, with the Social Court affirming the labor authority’s position in Zaragoza. A decision by the Supreme Court and related rulings in early 2020 and 2021 established that several riders must be treated as employees rather than independent contractors, influencing other companies in the sector, including Uber Eats and Deliveroo, in similar disputes over self-employment status. A related case also targeted MyPoppins, a platform for cleaning workers, affecting around ten workers.
A Glovo spokesperson indicated that any proposed review would occur through an ex officio process in the justice system, and that the company would present its claims as required. Despite ongoing litigation, Glovo has persisted with its business model, while continuing to engage with a large freelance workforce.
Since its early days, Glovo has challenged the view that riders should be salaried employees rather than self-employed contractors. The Rider Law reinforces the expectation that delivery workers be salaried unless the company can demonstrate otherwise. Today, Glovo’s Spanish fleet is reported to number in the tens of thousands, with estimates varying by source and department.
However, the ongoing tension between Labor authorities and Glovo continues. The penalties announced this week refer to actions that occurred before the Rider Law, and court outcomes may delay final payments. In the meantime, many riders remain engaged through freelance arrangements, delaying closures of ongoing processes. Yolanda Díaz, the second vice president, has noted that labor authorities will enforce the applicable law.
Aragon’s High Court of Justice has upheld a sentence against Glovo, reaffirming that 329 workers should be enrolled in the General Social Security plan. The court dismissed Glovo’s appeal of the Fifth Social Court of Zaragoza and confirmed that proper enrollment and contributions were owed. The decision highlights that the company had adequate control mechanisms, and the workers’ freedom was primarily in appearance. This ruling requires the company to cover social-security costs, with the Social Security General Treasury and hundreds of workers continuing to pursue the claims. An appeal to the Supreme Court remains possible from the party challenging the punishment.