Glovo has been given another multi-million-euro fine for failing to comply with Spanish law. The food delivery company now has to pay 78.9 million euros after Work and Social Security inspectors found that it had been falsely registering people as self-employed workers and breaking the so-called Rider Law.
The news was confirmed by the Minister for Work, Yolanda Díaz, this Wednesday morning.
The inspectors believe that over 10,600 Glovo workers who were registered with Social Security as self-employed should have been full employees. The company has been obliged to regularise their status and include them as part of the workforce. This applies to 8,331 workers in Barcelona and 2,283 in Valencia, who Glovo had refused to include on the payroll.
“This is a massive example of fake self-employment and the weight of the law is going to fall on this company,” Díaz explained. She also accused the company of violating the workers’ employment rights and obstructing the work of the inspectors, which she described as “extremely serious” in a social and democratic state governed by the rule of law, in which businesses “have to comply with the law”.
The Rider Law, which came into force in August 2021, obliges digital platforms to give work contracts to its delivery staff. This is in line with a decision handed down by the Supreme Court in September 2020, which established that delivery drivers cannot be self-employed and must therefore be full employees.