Prosecutors accuse Glovo CEO of “undermining and suppressing” the labor rights of its supply staff | Economy | EUROtoday

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Glovo's employment mannequin, which operates by way of false freelancers, “constitutes a practice that is not authorized by labor legislation and that undermines and suppresses the rights that it recognizes for employees.” In addition, it considers it “indisputable” that the riders They are staff for another person, somewhat than for themselves. This is how forcefully the Barcelona Provincial Prosecutor's Office expresses its grievance towards Oscar Pierre, CEO and co-founder of the supply firm, to which EL PAÍS has had entry. The public prosecutor accuses Pierre of against the law towards staff' rights primarily based on article 311 of the Penal Code, which punishes with jail sentences of six months to 6 years and a superb of six to 12 months “those who impose illegal conditions on their workers by hiring them under formulas outside the employment contract, or maintain them against administrative requirement or sanction.”

This level, the second in article 311, was added to the Penal Code on January 12, 2023. It was one other step by the Government to attempt to deal with the practices of Glovo, the principle firm within the dwelling meals supply sector in Spain. The first was the approval of the rider legislation in 2021, the purpose of which is for supply folks to be protected by an employment contract somewhat than a industrial one. But Glovo ignores this laws, regardless of the million-dollar fines imposed by the Inspection and the Supreme Court ruling in 2020 that acknowledged the employment relationship between the corporate and its supply folks. Faced with this effort, the Government launched “the criminal route” final summer season, in line with what the Secretary of State for Employment, Joaquín Pérez Rey, advised EL PAÍS. “We have formally required these companies to comply with the law so that they are aware that if they do not do so, it is no longer just a matter of economic sanctions, but also a matter of criminal sanctions,” he mentioned in an interview with this newspaper.

The division headed by Yolanda Díaz ready a report detailing lots of of particular instances of staff who ought to be salaried, however ship for Glovo as self-employed staff. “According to the inspection actions, this company could violate the Penal Code by not complying with the requirements that have been made to recognize its delivery people as self-employed workers,” mentioned sources from the ministry. The State Attorney General's Office obtained the report in October 2023 and transferred it to the Occupational Health and Safety Unit “in case the reported events could be a crime against workers' rights.” In view of the report from that division, the grievance was despatched to the Barcelona Provincial Prosecutor's Office at first of January, which started its investigation in February. The grievance is dated June 13 and has been filed within the Investigative Court quantity 31 of Barcelona. According to the report, The newspaper and the High Court of Justice of Catalonia has confirmed that the court docket has already opened an investigation.

“To carry out the services,” explains the Barcelona Prosecutor's Office, “Glovo uses workers who are required to be registered in the special regime for self-employed workers of Social Security. [el de autónomos]establishing with them a seemingly commercial relationship that allows them to reduce their business costs, by not guaranteeing a professional salary in accordance with the working day carried out, and by being able to stop paying into Social Security the amounts corresponding to the labor contributions of such persons.”

He then recollects the Supreme Court's ruling in 2020, in addition to the resolutions of a number of provincial social courts: he mentions a ruling in 2020 in Santander that declared the employment relationship of 85 staff; one other in Bilbao in 2021 and 438 staff; one other in the identical yr in Valladolid with one other 272; 329 extra in Zaragoza in 2021; and 142 extra in Oviedo in February 2022. “In this same sense, the Social Chamber of the Superior Court of Justice of Catalonia has concluded the existence of an employment relationship for another person in different rulings.” He cites ten examples.

“Indisputable”

“Despite all of the above,” the Prosecutor’s textual content continues, “Glovo continues to maintain the same employment relationship with its employees, even after January 12, 2023,” in reference to the date on which the Penal Code was modified. It says that its staff “continue to be forced to register as self-employed and pay their own contributions if they want to continue providing services for the company, which constitutes a practice that is not authorized by labor legislation and that undermines and suppresses the rights that it recognizes to employees, such as those related to salary, working hours, breaks, permits, vacations or Social Security protection.”

The Prosecutor's Office additionally mentions seven inspection requests that tried to show whether or not the employment relationship was authorized. “Glovo did not prove in its responses” the legality of the relationships, “limiting itself to answering that the initial relationship that united the parties was not maintained at the time of the request, although it is unquestionable that the workers have continued to carry out their delivery work under the same conditions in which they had been carrying it out previously, without their status as employees having been recognized.”

Glovo delivery drivers in Barcelona, ​​in August 2021.
Glovo supply drivers in Barcelona, ​​in August 2021. MAXIMILIAN MINOCRI

The public prosecutor considers that the standing of Glovo's supply folks as self-employed staff is “indisputable, having been declared by the competent judicial bodies in the matter”, however offers extra arguments to assist this thesis: “The fact that the delivery people lack their own work organization, when providing their services within the one implemented by the company Glovo, which directs and organizes their daily work through the mandatory digital platform, where the form and price of the collection and delivery service of products are determined, and a system of control of the production process is established through algorithmic management of the service”.

The public prosecutor is asking that Oscar Pierre be questioned and can also be requesting the testimony of a number of witnesses to clarify whether or not they have continued to function as false freelancers for Glovo for the reason that change within the Penal Code.

200 million euros

By the tip of May, Glovo had gathered a debt with Social Security of round 200 million euros in unpaid charges (73.4 derived from liquidation data and 127.2 million on which a assure has been established) and round one other 50 million in fines, a punishment that places the corporate in danger: Delivery Hero (proprietor of Glovo) acknowledges that the authorized issues it’s dragging alongside threaten the viability of the corporate.

In addition, till the start of April, the Labour and Social Security Inspectorate has ordered the official registration of 40,889 Glovo supply staff, all of them for the reason that firm started its exercise in 2014. To put this determine into context, it ought to be famous that the Catalan firm presently employs round 12,000 supply staff, a determine that the corporate prefers to not element. Industry specialists level out that the precise variety of riders is even largergiven the rental of accounts to 3rd events, normally to immigrants who generally lack work permits.

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