Glovo Shifts to Employee Model, Hiring Delivery Workers Ahead of CEO's Court Appearance, Facing 200 Million Euros in Fines

Dec 2, 2024, 08:26 AM

Glovo has announced a significant shift in its labor model by abandoning its controversial practice of employing 'false self-employed' workers. The company will now hire its delivery personnel as employees in Spain, a decision made just one day before CEO Oscar Pierre is set to appear in court regarding allegations of labor rights violations. This change comes amid increasing pressure from regulatory bodies and mounting fines, with Glovo reportedly facing over 200 million euros in penalties related to unpaid contributions and labor inspections. Additionally, competitor Just Eat has filed a lawsuit against Glovo, claiming 295 million euros in damages for unfair competition, arguing that Glovo has saved over 645 million euros by not hiring workers as employees. The new model will also involve opening a dialogue with social agents to ensure compliance with labor laws.