On Tuesday, Deliveroo, an online food delivery company, said that the Central Arbitration Committee (CAC), the labour law panel, ruled that the company’s riders are self-employed.
The Independent Workers’ Union of Great Britain (IWGB) had initiated the case against Deliveroo, which has been criticised for its failure to provide riders with benefits such as Britain’s minimum wage and holidays.
“We welcome the decision of the Committee. As we have consistently argued, our riders value the flexibility that self-employment provides,” said the Deliveroo Managing Director for the UK and Ireland, Dan Warne. “Riders enjoy being their own boss – having the freedom to choose when and where they work, and riding with other delivery companies at the same time.”
In a statement, IWGB said that it was examining the judgement with its lawyers and would determine the best solution for the matter.
Since 2013, the roughly 15,000 drivers of Deliveroo have become a familiar sight in Britain, tapping into the quickly increasing demand for takeaway food from restaurants.
Like Uber, a taxi app which also operates in the “gig economy” where most people tend to work for various firms without fixed contracts, Deliveroo had been criticised for not ensuring pay levels.