12 June 2018

The fair work ombudsman has launched legal action against Foodora, alleging its food couriers should be classed as employees rather than independent contractors.

In what could become a landmark case for the gig economy, the ombudsman is arguing...the company should be fined...for underpayment, sham contracting and breaches of the Fair Work Act.

Foodora and other companies like UberEats and Deliveroo class their workers as independent contractors.

This means they are not entitled to award wages, penalty rates, leave or other protections...that employees receive...

Foodora...argue that their workers are contractors because they provide their own bikes and vehicles, have the flexibility to choose when to work, and can refuse or delegate work...

If found to be in contravention of the Fair Work Act, Foodora could be penalised [AUD] $54,000 for each contravention.

...A Foodora spokeswoman said the company would not comment while the matter was before the courts.

“However, Foodora will be defending the claims and accusations that have been made against the business,” she said...