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Legal, Labor, 22/06/17

The legal framework for the employment of personnel working for certain technology companies


Food delivery drivers, package delivery drivers, or vehicle drivers are some of the jobs being created within the concept of technology companies.

Some of these companies conduct most of their business through mobile applications and function as platforms connecting businesses with consumers who want to receive an order at home, so they work with delivery drivers or self-employed drivers.

How some technology companies operate

These types of companies usually post shifts online, and from there, delivery drivers sign up to make deliveries using their own means of transport, whether motorcycle or bicycle. Currently, delivery drivers are paid per order delivered, which typically costs less than 5 Euros, so to earn anything comparable to a salary, they have to work extremely long hours.

The importance of this new sector is growing, although difficult to measure because it encompasses different activities and its boundaries are not entirely defined in our legal system. Research suggests that this type of on-demand work may cannibalize traditional salaried jobs, as these so-called "employee-free" businesses, whose entire workforce operates as self-employed, have been increasing in importance over the years.

Are the staff who provide services for these types of companies bogus self-employed workers?

The discontent among delivery drivers and chauffeurs is evident due to the unstable conditions in which they provide services, both in terms of economics and working hours, and most of them complain that it is very difficult to receive a monthly amount that resembles a salary.

On the other hand, companies refuse to have an employee relationship with them and offer these jobs as positive because of their flexibility, while also facilitating access to a way of having income that can be complementary to another activity.

The debate over whether delivery drivers should be considered employees or remain self-employed is underway. In this regard, a London court has set a precedent, ordering one of these companies to recognize several drivers as employees with full acknowledgment of all their labor rights, such as seniority, vacation time, legally mandated rest periods, etc. This ruling could be readily applied to our country, given that several conditions for an employment relationship exist, including the company issuing instructions to its personnel.

It is more than evident that labor legislation should be adapted to these newly created types of jobs, since with the current regulations, the courts could consider that there is an employment relationship between the personnel providing services and these types of companies.

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