Glovo Shifts to Direct Employment in Spain Amid Legal Pressure, Just Eat Lawsuit

Dec 2, 2024, 09:39 AM

Glovo, a Spanish food delivery company, has announced a significant shift in its employment model, moving away from its previous system of using 'false self-employed' or 'falsos autónomos' to directly hiring its delivery riders in Spain. This decision comes a day before the company's founder, Oscar Pierre, is set to testify in a criminal case related to labor rights violations. The change in policy follows a series of legal challenges and fines totaling over 200 million euros for labor law infractions. The move is seen as a response to mounting pressure from regulatory bodies and competitors like Just Eat, which has filed a lawsuit against Glovo for unfair competition, claiming damages of 295 million euros. Yolanda Díaz, Spain's Minister of Labor, has celebrated the decision, stating that 'no company, no matter how powerful, can impose itself above the law.'