Member Article

Deliveroo makes benefits pledge as gig economy debate rumbles on

On-demand delivery startup Deliveroo has claimed it would be willing to offer its workers sickness and injury-related benefits provided there are changes in the law.

As the BBC reports, the London-based firm, which has become something of a poster child for the so-called gig economy, has submitted the remarks as part of the government’s ongoing review of the on-demand economy.

Deliveroo claims that it deems its workers ‘self-employed’ as this is the only designation which allows them to pick and choose their own hours, and that it is in fact the law which is hampering their ability to offer riders the benefits and protections of fully contracted employees.

In its submission, the firm has suggested that employment rules should be adapted to reflect the changing reality of the UK job market with the creation of a new ‘gig worker’ classification that straddles the divide between a full ‘worker’ or ‘employee’ and the ‘self-employed’.

It said: “Central to our popularity with riders and our success as a business is the flexible nature of the work that we offer.

“We want to offer riders more security. We believe everyone - regardless of their type of contract - is entitled to certain benefits, but we are constrained in offering these at the moment.”

Deliveroo said that it would be willing to offer riders enhanced benefits and terms, including sickness pay, under a government administered scheme that recognises and maintains the flexibility afforded by the gig model.

Gig economy firms such as Deliveroo, UberEATS and others have come under the spotlight in recent months, with high-profile strikes from couriers drawing attention to the lack of protections in place for casual workers as well as a potential erosion of the tax base.

The controversy led to the government launching its own review of the industry headed up by Matthew Taylor, the head of the Royal Society of the Arts, who is currently preparing his findings.