Ref. Ares(2022)1661590 - 07/03/2022
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Sent:
vendredi 8 octobre 2021 09:59
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Subject:
FW: FLASH REPORT – Meeting between Commissioner SCHMIT and Deliveroo
CEO & representatives – 07/10/2021
From:
Sent: Friday, October 8, 2021 9:51 AM
To: CAB SCHMIT LIS
T <xxxxxxxxxxxxxxx@xxxxxx.xx.xxxxxx.xx> Cc: GELENG Manuela (EMPL)
<xxxxxxx.xxxxxx@xx.xxxxxx.xx>;
Subject: FLASH REPORT – Meeting between Commissioner SCHMIT and Deliveroo CEO &
representatives – 07/10/2021
Dear all,
Please find below a flash report on the meeting between Commissioner SCHMIT and Deliveroo
CEO & representatives, which took place on 7 October.
Best regards,
-------------------------------------------------
FLASH REPORT – Meeting between Commissioner SCHMIT and Deliveroo CEO &
representatives – 07/10/2021
Participants:
European Commission
Nicholas SCHMIT, Commissioner for Jobs & Social Rights
Ana Carla PEREIRA, Employment and Social Adviser to Commissioner SCHMIT
Deliveroo
Will SHU, CEO
Joe CARBERRY, Director of Corporate Communications
Ronan BREE, Head of EU Public Affairs
Main takeaways:
Deliveroo`s market is highly competitive and companies are competing
for the same workforce, thus Deliveroo has three key elements it wants
to deliver for its drivers: 1) strong earnings 2) security 3) flexibility.
According to survey conducted by Deliveroo, flexibility is the most
important element for drivers. In Deliveroo`s own assessment key
elements, and in particular flexibility, can be best provided by using the
self-employed model. Deliveroo`s current model is ruled to be genuine
self-employed model by multiple court rulings.
Representatives of Deliveroo emphasised that the company does not
pose any kind of control over its drivers; they can freely login to the
platform at any time and in any location, accept or reject orders, work
for multiple platforms and so on. Most of the drivers work for Deliveroo
as part-time and Deliveroo claimed drivers` earnings to be higher
compared to many other sectors, as hours worked are lower than
compared to e.g. ride-hailing platforms.
Many workers from sectors affected by the lockdown measures started
to work on the Deliveroo`s platform. Even though labour markets are
booming around Europe, workers are staying at its platform and even
more is in line to join. Deliveroo looks at this as manifestation of its
business model`s functioning from drivers` perspective.
Deliveroo voiced their concerns regarding a possible rebuttable
presumption which would cause excess burden as well as high costs for
all parties involved. Classifying drivers as employees would in the end
come at cause of flexibility, which in turn would have negative
consequences for platforms, drivers, restaurant industry, grocery and
food wholesale markets. A rule on shifting the burden of proof seems
more of a compromise but would come at high litigation costs.
From Deliveroo`s perspective, the main issue is its desire to provide
more security for drivers (e.g. AWOD insurance, sickness benefits,
parental benefits) but are struggling to do this without jeopardizing
drivers being classified as employees. Deliveroo called for a consistent
way of classifying self-employed within the EU, meaning in a way that
benefits/security provided by the platform would not be taken into
account as a factor of employment relationship. This is in line with the
recent proposal made in France.
Commissioner concurred on the importance of flexibility. If a person
wants to be self-employed and there is no control or subordination
from platform, there should not be a problem. Commissioner pointed
out that there is high number of ongoing court cases (though not on
Deliveroo) despite platform companies reporting workers desire to be
classified as self-employed, which points that everything is not as it
should be.
Deliveroo said there is always a minority that is unhappy and causing
these court cases, however Deliveroo bases its business model on
desires of majority.
From the COM point of view, the main aim is to find a balance between
flexibility and security. This would also provide stability for companies
to operate without constant threat of litigation. However, rules on level
of protection provided for self-employed are issues of Member States
competence, thus also unfortunately varying greatly.
Deliveroo acknowledged this but argued once more about the problem
being that it cannot provide additional security in those countries where
the security provided by the local system is insufficient, for reason
articulated before. Deliveroo is having constant debate with national
and local authorities but called for EU-level approach and actions from
the COM.
Commisioner concluded on that Deliveroo`s perspective of having
possibility to provide more security without it affecting classification is
very interesting and it needs to be looked into in more detail and
analysed. Commissioner emphasised that in the end workers are in the
heart of initiative.
Deliveroo promised to be at available if needed and to provide more
information on aforementioned surveys and extra security provided to
drivers.