Delivery Hero, owner of the Glovo Platform, has officially questioned the viability of continuing its operations in Spain due to the high fines and potential financial liabilities associated with recognizing individuals working as Delivery Drivers as employees of the Platform.
In its recently published financial report (for the first quarter of this year), Delivery Hero announced that the Spanish Social Security Authority (Seguridad Social) has demanded €450 million from Glovo for illegally employing delivery drivers as self-employed, despite the fact that the law (so-called “rider law”) requires them to be treated as employees. The company also admitted that it is highly probable that the total liabilities resulting from this case—including arrears of social security contributions, fines, and potential VAT—could total from approximately €500 million to over €920 million.
We would like to add: for the first time, we are seeing the scale of this scandal: almost a billion euros stolen from employees and the public treasury! And that’s just one Platform in one country!
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