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Rider Law in the Council of Ministers next Tuesday

The Government plans to approve the new ‘ Rider Law ‘ in the Council of Ministers next Tuesday . Two months and a day after the Ministry of Labor closes an agreement with employers and unions on this new standard , the Executive will validate it and put it into the Official State Gazette ( BOE ); as confirmed by sources from the department led by Yolanda D√≠azto THE NEWSPAPER.

The law, briefly written and that will only bind digital platform distributors, reinforces their employment status and specifically defines them as salaried employees; as the courts have already been dictating in recent years and against the criteria of the large platforms, which until now hired them as freelancers.

The new law on work on platforms incorporates a three-month ‘vaccatio’, during which companies in the sector – such as Glovo , Deliveroo or UberEats – must regularize the situation of their distributors. That is, if the BOE publishes the rule on Wednesday, it will come into effect on August 12 .

Three months of transition that are added to the two extra months of delay, which Work justifies by the need to prepare technical reports to endorse the norm and indispensable by law. As of mid-August, the companies must have regularized their current fraud situation, as has already been issued by multiple courts throughout Spain, including the Supreme Court.. From now on, the judges, who already ruled mostly in favor of the ‘riders’ should operate as wage earners, will only be able to choose to sentence in that sense.

The new legislation, which will be approved a week after the Madrid elections and will constitute the first law in Europe that specifically regulates the sector of digital platforms, will force a complete restructuring of the labor model of the firms in the sector.

And it will mean a millionaire outlay for the Social Security coffers. The Labor Inspectorate has been acting ex officio and in the face of complaints in recent years and among the main companies in the sector (Glovo, Deliveroo, UberEats, Stuart and Amazon) it has uncovered more than 17,500 false self-employed workers in recent years. Requiring these companies the payment of more than 23 million euros, just for their regularization.

Well, until now these companies employed the delivery men as freelancers and they were the ones who assumed the social contributions, in addition to the telephone bill, the vehicle and their leaves and vacations (if they had them or could afford them). This implies a lower income for Social Security -because the contribution of a self-employed person is significantly lower than that of a salaried employee- and much lower for the company, since the few obligations were paid up to now by the dealer.

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