Deliveroo has barely been out of the headlines in recent days. The online food delivery company has been criticised for how it treats its workers, who aren't really "workers" per se, but self-employed contractors. It's under fire over a new pay deal it's trialling on some of its riders this month. Last night, the company announced it wouldn't force the new contract on them, which many believe will make riders' earnings even less secure, and offered some other concessions. But some say these concessions aren't enough. So what exactly is going on?
What Is Deliveroo Proposing?The company wants to introduce a new payment scheme, which would see its riders earn £3.75 per delivery with no guaranteed hourly pay rate. They currently get £7 per hour plus £1 per delivery. Remember, because the couriers are self-employed they already provide their own transport (bicycles and motorbikes), insurance and aren't eligible for holiday pay or sick pay, The Guardian reported. And because they're not legally "workers", they're not eligible for minimum wage. Their £7 per hour wage was already below the minimum wage. In practice, the line between being "self-employed" and a "worker" is thin. The government recently stepped in, telling the company it must pay riders minimum wage unless a court rules that they're actually self-employed.