Glovo Transitions to Regular Employment for 14,000 Couriers Amid Legal Developments in Spain
In a significant shift in its employment model, Spanish home delivery service Glovo has announced the hiring of 14,000 riders with regular contracts, marking an important milestone in compliance with local labor laws. This change comes after years of operating primarily with freelancers, a practice that put the company at odds with Spanish legislation invoked in 2021 that mandates platforms like Glovo, Deliveroo, Just Eat, and Uber Eats to establish formal employment contracts for their delivery personnel.
Founded in 2015 in Barcelona, Glovo has grown rapidly to become a leading player in the global food delivery market. However, the company faced multiple fines and legal troubles for its past practices of not regularizing the status of its riders. According to Labor Minister Yolanda Díaz, Glovo not only failed to comply with the law but also allegedly obstructed investigations initiated by the Spanish labor inspectorate.
In December 2021, Delivery Hero, the parent company that oversees Glovo, announced intentions to revise its employment model, indicating a strategic pivot toward more sustainable and lawful practices.
As part of its commitment to compliance, Glovo claims to have extended approximately 34,000 job offers to individuals who worked for the company between 2021 and 2024. However, labor unions have expressed concerns, stating that many of these offers were turned down due to the outdated terms, hours, and pay rates proposed by Glovo. Despite this criticism, the company is optimistic about future hiring, expecting numbers to grow in the coming months.
It’s important to note that Glovo will continue to utilize couriers affiliated with third-party companies, a factor that complicates the full transition to regular employment for all riders. This layered approach may indicate that while Glovo is making strides in aligning with legal standards, challenges in achieving complete compliance—and adapting its workforce model—remain.
The case of Glovo highlights the ongoing debate around gig economy regulations and workers' rights in Spain and beyond. As more companies face similar scrutiny, the landscape of employment in the delivery sector is set for further changes.
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