Are delivery drivers actually employees? Court rules on landmark case

The ERA cited the nature of the job in its decision

Are delivery drivers actually employees? Court rules on landmark case

A takeaway delivery rider is an employee of the online application that he renders service for, according to the Employment Relations Authority (ERA), going against the contract that stated the rider was an independent contractor.

The decision stems from a grievance of a Chinese immigrant, who works as a takeaway delivery rider for an online application that caters mostly to the local Chinese community.

The rider, who sometimes struggled with spoken English, was hired to deliver goods for almost two months before being "disconnected" from the application due to a complaint from a restaurant owner.

The rider is attempting to seek remedies and reinstatement following his termination, but the respondent of the case argued that the rider was an independent contractor and not an employee.

But in a ruling from the authority, ERA member David Beck sided with the Chinese immigrant and said he was an employee of the online delivery application, even if his contract explicitly stated in English that he was an independent contractor.

In his decision, Beck cited that while the written agreement between both parties stated the rider was an independent contractor, the responded did not provide a copy of the agreement and did not explain the terms or the agreement to the worker.

The applicant was also not able to get advice on the agreement before signing it, according to the ruling.

Read more: Employment Relations Authority awards $25K to woman fired by ex-boyfriend employer

Beck also attributed the ruling to the rider's situation under while under the company, where he had to indicate his availability for rosters in advance and could not just log in and accept orders.

The company's model of business also gave it significant control over the rider while working, adding that the delivery drivers were essential and integral to the company's "public face."

The rider also had no ability to expand the customer base to his advantage, and there was no evidence he was in the business on his own account.

"For the reasons discussed above, taking account of the totality of the relationship and how it operated and the objects of the Act, I conclude the real nature of [the rider's] engagement was as an employee and not an independent contractor," said Beck in his decision.

With this ruling, this means that the former delivery rider can now "pursue his identified personal grievances."

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