Regulators have fined Glovo, the Barcelona-based on-demand delivery service, handing down a €57 million charge for alleged infringements pertaining to its Madrid delivery riders' employment status. (source — El Confidencial.)
Spain's so-called 'Rider Law' came into effect in August 2021 and requires delivery firms to formally payroll drivers who'd otherwise be classed as self-employed contractors.
For its part, Glovo says it will seek to overturn the sanction, appealing through the courts. The self employment contracts awarded to its drivers changed after the new law's introduction. Glovo says the sanction should not apply to the updated renumeration framework.
Two Rider Law infringements in Glovo's Madrid fleet were cited as reasons for the Spanish labour inspectorate's penalty.
One is in relation to thousands of Glovo drivers who allegedly lack social security registrations, while the second penalty is for foreign riders hired without the correct work permit.
This isn't the first time Glovo has incurred the wrath of Spanish regulators. Some €205.3 million in penalties and settlements have been applied to its domestic arm, prompted by alleged legal failures pertaining to 37,000 or so workers. El Confidencial said. In addition to Spain, Glovo has foreign on-demand delivery fleets operating in Italy, Portugal, France and Spain, and also in Latin America. Glovo raised €450 million in series F capital in April 2021 and afterwards ramped up its acquisition activity, buying up a small grocery delivery player in its home market, Lola Market, as well as acquiring Mercadão in neighbouring Portugal.