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Gig Economy Gets Green Light To Use Contractors

Gig economy companies are allowed to continue to classify riders as independent contractors rather than full-time employees eligible for minimum wages and protection following a major ruling by the country’s Industrial Court.

The ruling focuses on the federal government’s commitment to enact new rights for gig economy workers. It’s a move that the transport union of the powerful workers’ confederation has declared “urgent”.

The Fair Labor Commission on Wednesday overturned an earlier ruling that Deliveroo rider Diego Franco was an employee and protected from unfair dismissal. If the ruling had been effective, Deliveroo would have been forced to reimburse users heavily, upending his economy sector, which includes companies like Uber, DoorDash and Menulog.

Diego Franco initially won a wrongful dismissal lawsuit, but a series of High Court rulings overturned the ruling.credit:Janie Barrett

The Commission found that Franco’s work had employment characteristics “as a matter of fact”, but the three Appellate Members decided to “close their eyes to these matters” and focus overwhelmingly. He said he was obliged to comply with the recent High Court ruling that forced him to do so. Contract terms between Franco and Deliveroo.

These conditions, which allowed Franco to have other riders take his place, allowed him to choose his own route to customers and required him to provide his own vehicle. and made him a contractor. Companies such as Deliveroo and Uber, which declined to comment, traditional worker’s compensation or right to unfair dismissal. They provide insurance for riders.

The transport union, which has represented Deliveroo and Franco, said the decision showed why the sector needed to be reformed as promised by the federal government.

“Deliveroo believes the time has come for the discussion to move beyond rider status,” a Deliveroo spokesperson said. “It is clear that our riders are genuinely involved as independent contractors.”

She said Deliveroo users can choose when, where and how long they want to work. This was only possible through self-employment.

“We are committed to working with the Federal Labor Relations Minister and all stakeholders to develop a national reform program that fits the objectives of Ryder’s chosen way of working,” the spokesperson added. rice field.

Gig Economy Gets Green Light To Use Contractors

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