Foodora rider ruled employee
There could be changes coming for the gig economy, after it was ruled that a Foodora delivery rider was an employee, not an independent contractor.
The ruling by the Fair Work Commission (FWC) is expected to increase scrutiny on companies like Uber Eats and Deliveroo.
Senator Murray Watt, who chaired this year’s Future of Work inquiry, said the decision recognises that technology is creating new ways to exploit workers.
“It's a landmark decision that will fundamentally reshape work in the gig economy and will reshape the rights of workers in that economy,” he told Fairfax.
“Companies like Uber Eats and Deliveroo should be very worried by this decision.”
“It's a great decision for Foodora workers but there are huge numbers of other gig workers engaged by other gig companies who continue to be faced with precarious employment and below-award pay,” he said.
“People often think about the Ubers, Foodoras and Deliveroos but we are seeing this gig work spread to aged care, child care and disability care.”
Companies in the gig economy have tried to have the best of both worlds but putting restraints on workers while trying to maintain that they are independent contractors.
Fair Work Commissioner Ian Cambridge looked at Foodora's system to rank workers on performance, uniform and Foodora branded equipment as factors towards employment status.
Experts say Uber Eats and Deliveroo will likely review their control over workers, including star rating systems, uniforms and branded equipment.