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Deliveroo eyes leaving Spain as riders become staff

Deliveroo's trademark green rucksacks may soon disappear from Spanish streets after food delivery firm said it was considering leaving that market where its riders will soon be recognised as staff.

Deliveroo eyes leaving Spain as riders become staff
Photo: Gabriel BOUYS / AFP

“Deliveroo is intending to consult with its employees over ending its operations in Spain,” the app-driven food delivery firm said in a statement just two weeks before a deadline for compliance with a key labour law reform.

In mid-May, Spain became the first country within the European Union to approve legislation that recognises delivery riders working for firms such as Deliveroo or UberEats as staff.

It is the first European legislation that explicitly regulates the status of delivery workers, who get around on bikes and motorcycles and whose numbers have exploded in recent years, despite precarious working conditions.

Under terms of the reform, companies must treat their riders as staff and pay contributions so they can receive social benefits, with firms given three months to comply. The deadline expires on August 12th.

Although the reform would have an effect, Deliveroo said it was “not the reason why it considered” leaving the Spanish market, which was for “purely economic reasons”, a company spokesman told AFP.

Deliveroo, he insisted, had “the financial capacity to take on the riders it works with” but had made clear from the start that the rider law was “not compatible with current market and working conditions”.

But the Riders X Rights union, which has been at the forefront of the struggle for riders’ rights, said it was clear the labour reform was behind the decision.

“The message is clear: if they have to comply with labour legislation it is not in their interest to continue operating here,” the union tweeted.

In Spain, as in other countries, the riders have repeatedly denounced their precarious working conditions, taking legal action to demand recognition as salaried staff, which would guarantee them benefits such as paid holidays and sick leave.

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OFFICIAL: Delivery riders become company staff as Spain’s labour reform kicks in

The legislative changes which were pushed through by the left-wing government of Prime Minister Pedro Sanchez came after a Supreme Court ruling last year that there was a “working relationship” between riders and Barcelona-based food delivery app Glovo.

Deliveroo operates in 12 markets around the world and said the vast majority of its gross transaction value (GVT) — or revenues — came from countries in which it ranked first or second.

But in the first half of 2021, Spain had only accounted for “less than 2.0 percent” of its global revenues.

“Achieving and maintaining a top-tier market position in Spain would require a very high level of investment with very uncertain potential long-term returns,” Deliveroo said.

Pulling out would allow the company to “focus investment and resources on the other markets”.

The company said it would begin consulting with both staff and riders in early September which would last around a month following which it would issue its final decision.

Earlier this year, Deliveroo, Stuart, Glovo and UberEats warned that such “forced labourisation… endangers a sector that contributes 700 million euros to Spain’s GDP”.

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Do I have to take most of my annual leave in August in Spain?

Many Spanish companies still expect their workers to take their holidays at specific times of the year, primarily in August, right in the height of summer when many hotels are fully booked. So what are your rights, are you obliged to take your vacation in one particular month?

Do I have to take most of my annual leave in August in Spain?

While it’s your right as an employee to be able to take holiday days, do you have to take them when your company wants you to take them, or are you able to choose and have more flexibility?

Despite August being one of the hottest months in Spain and the one month of the year when many official companies and offices shut up shop, not everyone necessarily wants to take their break at the same time as everyone else.

Taking your holidays in August means less availability in hotels, overcrowding and more expensive transport and accommodation. If you don’t have children who are off from school during the summer months, then you may wish to take your vacation days at another time of the year, when it’s less busy and cheaper.

To answer the question it’s important to know the details about what the law says about how paid time off is taken, requested, imposed, or granted.

What laws or regulations dictate the rules about paid holiday time?

There are three different sets of rules and regulations, which are responsible for regulating the laws on vacation time in Spain. 

Firstly, you need to look at the Spanish Workers’ Statute, which includes rights, duties and obligations applicable to all salaried workers in Spain.

Secondly, you need to be aware of the collective sector and/or company agreements, which may dictate the rules for a particular industry for example.

Thirdly, you need to look at the contract, which you signed with your employer when you started working for them. This sets out your individual circumstances and the rules you must abide by.   

Workers Statute

As a general rule, all employees are subject to the Workers’ Statute. Holidays are part of this and are the subject of article 38. These conditions can never be contradicted by individual companies and are set as a guaranteed minimum. 

The minimum number of holidays in Spain is 30 calendar days per year. This equals two and a half days per month worked, in the case of temporary contracts. The statute states that vacations must be taken between January 1st and December 31st in separate periods, but one of them must be for at least two weeks. They are always paid and cannot be exchanged for financial compensation.

The period when you can take them is set by a common agreement between the employer and the worker, in accordance with what is established in the collective agreements on annual vacation planning. If there is disagreement, the social jurisdiction is resorted to.

At a minimum, the company must offer vacation days at least two months before the beginning of the holiday period, so that the employee has time to organise and book.   

When the planned time to take vacations coincides with a temporary disability, pregnancy, or childbirth, you have the right to enjoy the vacations at another time, even after the calendar year is over.

Collective agreements on vacations  

Your sector’s collective agreements may also help to answer this question. These aim to improve upon the basic and general rights that are included in the Workers’ Statute. They seek to adapt the rules to each type of industry or company. They could, for example, set out extra vacation days, which are greater than the standard 30 calendar days. 

You will need to find out what your specific sector or company’s collective agreement is. There is a possibility that your sector or company has mandatory summer vacations for the month of August and in that case, you can choose vacation dates, but only within this month.

Your work contract 

Lastly, you will need to consult your individual contract which you signed with the company when you were hired.  As well as the minimum conditions set out in the Workers’ Statute, your contract sets out your particular agreement with your employer in terms of holiday duration, the work calendar and other details.

Therefore, you should state in your contract whether you have to take your holidays during August, or if you’re free to take them at other times of the year.

If after consulting these three sets of regulations and there are still in doubt or in disagreement with your company about vacations, such as having to take them during the month of August, you should consult a lawyer specialising in labor law. They should be able to give you an answer specific to your situation.  

Can I appeal or disagree and what are the consequences? 

To appeal or express disagreement with what is proposed by the company, there is a period of 20 business days from when the vacation schedule is sent out, after which time you don’t have the right to show that you disagree.  

Companies can proceed to disciplinary dismissals due to abandonment of the job if you decide to take vacations that have not been granted or agreed upon with your employer. To avoid this type of problem, always make sure you have a record in writing of your request for vacation time and subsequent approval by the company.

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