Hefty fine to Glovo for operating with false self-employed. The Labor Inspection began last Monday to notify acts of infraction and liquidation to the company in Barcelona and Valencia, which involve the imposition of almost 79 million euros in fines for having 10,614 workers as false self-employed.
As the Ser advanced today, with these actions the Labor Inspection would have sanctioned Glovo with 63.2 million euros in Barcelona and 15.7 million in Valencia.
In the inspection actions carried out on Glovo in Barcelona, the relationship that unites the company with at least 8,331 employees, until now working as self-employed, has been confirmed. Specifically, an infraction report has been drawn up for hiding the employment relationship of these workers and, therefore, for not having registered them in the general Social Security regime, which has led to a fine amounting to 39.06 millions of euros. Likewise, the Inspection has drawn up a liquidation certificate for the lack of contributions to the company’s Social Security for these workers, with a penalty amounting to 24.16 million, reports Efe.
In Valencia, the Inspectorate has confirmed the employment relationship with 2,283 workers and has proceeded to draw up an infringement certificate for 10.7 million euros and a liquidation certificate for 5.05 million euros, while imposing a penalty for obstruction to the inspection work amounting to 2,500 euros.
The Second Vice President and Minister of Labor, Yolanda Díaz, today confirmed these sanctions and accused Glovo of “violating” the labor rights of its workers and of “obstructing” the work of the Labor Inspectorate, something that she has described as ” very serious” in a social and democratic state of law, in which companies “have to comply with the law”.
“We are facing an authentic performance of false self-employed and the weight of the law is going to fall on this company, as it has already fallen with the Inspection”, warned the vice president.
In the actions carried out on this occasion, the Inspection has carried out interviews with the company and with the workers, and has examined all kinds of documentation of importance for verifying compliance with labor and social security regulations.
Likewise, it has proven that the company is not a mere intermediary in the contracting of services between businesses and delivery people, but a company that provides delivery and courier services, setting the essential conditions for the provision of said service.
The Inspection has found that in the relationship between the company and the delivery men there are notes of dependency and alienation typical of the employment relationship.
So far this year, Glovo already adds 42.2 million euros in payment of Social Security contributions and another 84.4 million for infractions, to which are added penalties of 14,000 euros in two acts of obstruction of inspection work .
From Glovo they clarify to CincoDías that this is not the first fine after the Rider Law, since the period inspected refers to the year 2018 until August 11, 2021 with the entry into force of the aforementioned law. The sanction “is not related to the Rider Law and refers to the model [operativo] above, no longer in force in Spain”.
The company also specifies that the notified amount includes not only the proposals for Social Security contributions but also a proposal for a sanction for each delivery person.
“It should be noted that during the inspection period, Glovo asked to expand and provide their evidence, reflections and assessments as well as different documentation, something that was rejected when the minutes were presented,” he says. The company also specifies that it is a unilateral resolution, which implies a proposal from the inspection, against which the company has to present its allegations, and after processing an ex officio procedure in the field of justice, They will analyze the same in order to propose an act of liquidation and/or infraction.
The so-called ‘Rider Law’, in force since August 2021, forces digital delivery platforms to hire their delivery men as employees. Thus, the law recognizes the presumption of employment of workers who provide paid delivery services through companies that manage this work through a digital platform, in line with the ruling issued by the Supreme Court in September 2020, in which it established that the delivery men are employed and not self-employed.
Last March, Uber Eats, a direct competitor of Glovo, demanded that this company comply with the ‘Rider Law’ to compete on equal terms. The US company accused Glovo of continuing to operate with freelancers and the Government of consenting to it, despite the fact that the law establishes the obligation for these companies to make an employment contract for their delivery men.
In August 2021, CC OO denounced Glovo before the Labor Inspection for defying the Law. The delivery company, now owned by Delivery Hero, has always defended the legality of its model. The current one, as they point out, combines the direct contracting of delivery men with riders autonomous “that complies with the law and follows the criteria established by the Supreme Court and the Court of Justice of the EU”.