Labor fines Glovo with 79 million for employing false self-employed and leaves it in a critical situation

Glovo has been left in a critical financial situation due to the hiring of false freelancers. After a Labor inspection as a result of several complaints in Madrid, Barcelona and Valencia and prior to the entry into force of the Rider Law, the Government has imposed a fine of 79 million euros, forcing it to regularize 10,600 of its workers. The actions of the Inspections were carried out, specifically, between May 2018 and August 2021.

The Second Vice President of the Government and Minister of Labor and Social Economy, Yolanda Díaz, has accused the company this Wednesday, in statements to the press upon arrival at the control session of the Government in the Congress of Deputies, of and of ” obstruct” the work of the Labor Inspectorate, something that he has described as “very serious” in a social and democratic State of Law, in which companies “have to comply with the law”. “We are facing an authentic act of false self-employment and the weight of the law is going to fall on this company, as it has already fallen with the Inspection”, warned the vice president, thus confirming a news item advanced first thing in the morning by Cadena SER.

Red numbers

Glovo compared to the previous year, although it registered a record turnover that rose to 590.9 million, 64.2% more. The company has already anticipated operating losses of 330 million in 2022, making the situation now extremely complicated, taking into account that it could lose more than 400 million after paying the fine.

The fine also comes just three months after it was announced on December 31 for which it will thus control 94% of the capital of the Spanish delivery company. The Government had given its endorsement to the operation only when Delivery Hero undertook in writing to comply with the Rider Law, since Glovo has continued to operate with autonomous delivery men since the entry into force of the norm, unlike other competitors such as Just Eat, that they are complying with the law.

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In a statement, the German listed company reported in July that it had obtained the endorsement of the regulatory authorities half a year after its intention to become the majority shareholder of Glovo, a company in which it already participated, was made public, but it did not assess the commitment acquired.

“We have known, liked and trusted each other for years: our teams share the same vision and yet we can continue to learn a lot from each other by exchanging knowledge and exploring technological and operational synergies,” said CEO and co-founder by Delivery Hero, Niklas Östberg.

After months of negotiations, the Ministry of Labor, the CC OO and UGT unions and the CEOE and Cepyme employers managed to close an agreement at the beginning of March last year to carry out the so-called Rider law, which established the presumption of employees of the delivery men autonomous on platforms. The law, published in May 2021, included what had already been sentenced by the courts, giving companies three months to adapt to the new situation.

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