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UK – Deliveroo offers riders sick pay if employment law is changed and Parcelforce comes under fire

07 July 2017

Food courier Deliveroo said that it will offer its riders sick and injury pay as well as other benefits if the government overhauls its employment laws.

Deliveroo stated that companies are currently forced to choose between offering workers flexible work and entitlements such as sick pay and maternity leave because the law had not been “updated” to reflect new ways of working, according to the Telegraph. The firm states that currently, the law prevents it from offering enhanced rights because it classifies its riders as self-employed, which Deliveroo says provides its riders with the flexibility to work whenever they choose to. Deliveroo states that reclassifying its riders as employed would mean that they would no longer have the flexibility. This would also require them to offer employment benefits and pay national insurance.

The food courier is calling on ministers to change employment legislation so that a new category is created which would allow its riders, as well as other similar workers, to receive enhanced benefits while maintaining flexibility.

Currently, self-employed workers who work in the gig economy, such as Uber and Deliveroo, are not entitled to benefits such as sickness pay, holiday pay, or maternity leave.

“We want to combine full flexibility with real security ­ and we are calling for the law to be updated so we are able to offer both. We strongly believe this is not a zero-­sum game,” Deliveroo founder Will Shu wrote to the Telegraph.

Deliveroo’s comments were made in a submission to the employment law review by Matthew Taylor, reports the BBC, which is set to be due imminently. Unions are expected to oppose Deliveroo’s moves.

Deliveroo has faced criticism over its contracts and rider’s employment status. Earlier this year International Workers Union of Great Britain fought Deliveroo in a legal case to secure worker’s rights.

Meanwhile, Frank Field MP who chairs the government’s Work and Pensions Committee has criticised Parcelforce, part of the Royal Mail Group, for exploiting their 700 ‘owner drivers’ who are technically self-employed. As well as questioning their employment status, Field claims the drivers do not earn minimum wage once their overheads are deducted and face ’fines’ of up to £400 if they call in sick.

Field highlights a clause in the Parcelforce contract (similar to one used, until recently, by Deliveroo) which waives the drivers’ right to challenge their status at employment tribunal - something two Uber drivers did successfully last year. The clause reads “The Owner Driver shall indemnify Parcelforce Worldwide against all claims, actions and proceedings…relating to taxation, National Insurance contributions, pensions, or otherwise concerning the Owner Driver’s relationship with Parcelforce Worldwide”.

Field told ITV News that Parcelforce should be "ashamed" of the clause and has called on the company to remove it, however, a Royal Mail spokesman said that it treats "all of our business partners with fairness and respect".