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Home Tech Glovo Fined $78M in Court Battle with Spain’s Government

Glovo Fined $78M in Court Battle with Spain’s Government

by Terryanne Koech
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Glovo has been fined with a whopping $78M over hiring regulations not followed das stipulated by the Spain laws. The delivery giant said it would appeal the decision, in which the labor ministry alleged it had failed to contribute to social security and make other payments from 2018 to 2021 as it did not hire its delivery riders under formal contracts.

“(Glovo) has violated fundamental labor rights and they have obstructed the work of the investigation. For this reason, action has been taken against this company, We will make them comply with the law,” Diaz told reporters.

Glovo however claimed they had fully collaborated with the labour ministry investigation, which it argued took place before the new law came into force.

“During the inspection period, Glovo asked to expand and provide its evidence, reflections and assessments as well as different documentation, which was rejected by the labour inspection,” it said in a statement.

Spain passed one of Europe’s first laws relating to gig-economy workers’ rights in May 2021 that requires riders for food delivery platforms be made employees on formal labour contracts. The law came into effect in August 2021.

But some, such as 19-year-old Glovo rider Giancarlo from Peru, said they have still not been offered a formal contract in an interview with Reuters.

“I would prefer to work for a salary, it’s easier than having to look (for orders) for myself alone,” Giancarlo told Reuters in Barcelona. He preferred not to give his last name as his residence permit in Spain is still pending regularisation.

Nicolli, a 22-year-old Brazilian rider in Barcelona, however said she preferred freelancing because it “gives more freedom to work and earn a lot more”.

The labour ministry said that Glovo had refused to give labour contracts to more than 10,600 riders in Spain’s second and third-largest cities, Barcelona and Valencia, since the riders law came into effect.

One of the unions representing the riders, CCOO, said in a statement it “valued positively the strong action taken against the problem of the delivery workers”.

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