(Reuters) - Online food delivery company Deliveroo said on Tuesday that labor law panel the Central Arbitration Committee (CAC) ruled that its riders are self-employed.
The Independent Workers’ Union of Great Britain (IWGB) had brought the case against Deliveroo, which has been criticized for not providing riders with benefits such as holidays and Britain’s minimum wage.
“We welcome the decision of the Committee. As we have consistently argued, our riders value the flexibility that self-employment provides,” Dan Warne, Deliveroo Managing Director for the UK and Ireland, said. “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.”
IWGB said in a statement that it was reviewing the judgment with its lawyers and would decide the best course of action.
Deliveroo’s roughly 15,000 drivers have become a familiar sight in Britain since 2013, tapping into the rapidly growing demand for takeaway food from restaurants.
Like taxi app Uber, which also operates in the “gig economy” where people tend to work for different firms without fixed contracts, Deliveroo had been criticized for not guaranteeing pay levels.
Reporting by Mekhla Raina in Bengaluru and Costas Pitas in London. Editing by Jane Merriman