economy and politics

Glovo accumulates fines for 205 million in Spain after a new Labor sanction for 56.7 million

Glovo accumulates fines for 205 million in Spain after a new Labor sanction for 56.7 million

The company will appeal the sanction and stresses that the inspected period is prior to the entry into force of the ‘rider law’

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The Glovo delivery platform has been fined again by the Labor and Social Security Inspection with an amount of 56.7 million euros and already accumulates sanctions in Spain for a value of 205.3 million euros, as reported to Europa Press in sources from the Department headed by Yolanda Díaz.

The last sanction imposed, for an amount of 56.7 million, has been against Glovo Madrid for employing 7,022 ‘false self-employed workers’ and having 813 foreign workers irregularly, without the corresponding work permit.

Specifically, the Inspectorate has proposed a sanction to Glovo Madrid of 32.9 million for not registering 7,022 workers in the General Social Security Regime (the ‘rider’ law obliges them to hire distributors as employees). The settlement certificate for not contributing to Social Security for them amounts to 19 million euros.

To these amounts must be added another fine of 5.2 million euros that the Inspectorate has imposed on the delivery platform for having 813 foreigners working irregularly.

In this way, these latest actions against the delivery platform have involved sanctions and liquidation proceedings for a global amount of 56.7 million euros, with the number of workers affected being 7,835 people.

With this latest fine, Glovo accumulates sanctions in Spain for a value of 205.3 million euros, of which 125.3 million correspond to infringement records and 80 million euros to settlement records. In total, the workers affected by breaches of the delivery platform amount to 37,348.

The so-called ‘rider law’, which obliges digital delivery platforms to hire their delivery drivers as employees, came into force in August 2021.

The norm, fruit of the agreement between Work, CC.OO. and UGT and the business organizations CEOE and Cepyme, affects labor relations between the platforms dedicated to the delivery or distribution of any product or merchandise and their workers.

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 drivers are employees and not self-employed.

GLOVO WILL APPEAL

After learning of the new sanction of the Labor and Social Security Inspectorate, from the delivery platform they have indicated to Europa Press that the inspected period to which the file refers is prior to the entry into force of what is known as the ‘rider law’.

“In addition to not being a consequence of the ‘rider law’ because it is from a previous period, the sanction proposal refers to an operating model that no longer exists in Spain. There is no report from the Labor Inspection or any type of judicial pronouncement on the new unpublished model currently available in Spain”, they have underlined from the company, which will appeal the sanction proposal.

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