Human cloud food courier firm Deliveroo must pay a pension premium for all its employees in the Netherlands with an employment contract a sub-district court judge in the Netherlands has determined.

The ruling was made in proceedings initiated by the Industry Pension Fund for Professional Road Transport. Deliveroo must also retroactive premiums, the sub-district court stated.

According to the pension fund, Deliveroo meets all the conditions for being obliged to participate in the fund as the company deliverers transport goods (meals) by road for a fee and these activities form the core of the company. 

Deliveroo stated that it does not agree with this. According to the company, the core activity would not be the delivery of meals, but the provision of an online platform for restaurants. Delivery would only be part of the marketing strategy. In their own words, Deliveroo is not a delivery service, but a technology company, which means that affiliation with the Transport Pension Fund would not be appropriate.

However, the sub-district court did not agree with Deliveroo and considers that the pension fund has sufficiently demonstrated that the delivery of meals is indeed the core activity of Deliveroo. It stated that Deliveroo’s activities, the ordering process, digital environment and the advertisements are all focused on the ultimate goal of the delivery of meals. Deliveroo's revenue model is also based entirely on delivery. Although the company also offers services other than meal delivery, there is no evidence that these activities are so extensive that they should be seen as the company's core task.

“The sub-district court therefore concludes that Deliveroo is obliged to pay a pension premium for all employees - delivery staff and office staff - with an employment contract,” it stated. “The first years that Deliveroo was active on the Dutch market, all deliverers worked on the basis of such an agreement. For them, the company must pay premiums retroactively through this ruling. This means that approximately €640,000 in premiums still to be paid.

From November 2017, Deliveroo only worked with freelancers for delivery. However, in January 2019, the Amsterdam court then ruled that the working relationship between Deliveroo and its delivery riders should also be regarded as an employment contract after November 2017. This means that its riders would be entitled to the same pay and benefits as an employee.

The appeal against this judgment is still pending. The sub-district court said that at the request of the pension fund, this issue and its possible consequences for this group of delivery riders, has been excluded from the current procedure.