Uber's food delivery platform in Spain has agreed in court to pay severance to 4,400 riders it had fired in 2021, reports Reuters, citing local union UGT. The riders lost their jobs following the introduction of a new law in Spain which forces food delivery companies to hire their couriers as employees instead of self-employed contractors. Uber's platform, Portier Eats Spain, acknowledged the delivery riders were collectively dismissed in violation of Spanish law and will pay each of them the equivalent to 45 days' salary per year they worked for the company, the union said in a statement.

This agreement with worker unions in Spain aims at compensating couriers who were not able to access our app following the introduction of the Rider Law in 2021," an Uber spokesperson told Reuters. "We have since then launched a new model in full compliance with the new local regulatory framework and remain open to dialogue."

Trade unions took legal action against Uber's Spanish food delivery platform last year before the country's High Court to challenge what they described as mass lay-offs. The court initially ruled the unions' lawsuit lacked standing. But in July, the Supreme Court overturned the High Court's decision and mandated a retrial today, which has now been settled with Uber's agreement to pay the severance.