please create two questions from the below case study? and answers the questions
ID: 419050 • Letter: P
Question
please create two questions from the below case study? and answers the questions
which is related to legal aspect of HR
Deliveroo riders plan legal action over employment rights
Deliveroo has said its riders continue to benefit from its growth in the UK. Photograph: Daniel Leal-Olivas/AFP/Getty Images
A group of Deliveroo couriers is planning legal action against the food delivery firm to claim better employment rights including the minimum wage, sick pay and holiday.
The 20 delivery riders say they are employees and not, as the company argues, self-employed contractors. In the latest challenge to employment conditions in the gig economy, they are seeking compensation for not receiving holiday pay and for being paid wages below the legal minimum for employees.
The Deliveroo move follows successful employment tribunal cases brought by cycle couriers at CitySprint and Excel and drivers for taxi app Uber. All three cases found the riders were workers, meaning they are entitled to limited rights including holiday pay and the minimum wage, rather than self-employed contractors with no employment rights.
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The Deliveroo riders behind the complaint are the first of a group of at least 200 couriers who have contacted Leigh Day, the legal firm supporting the process. In a first step, the initial group of 20 has contacted arbitration body Acas and will go to an employment tribunal if no resolution is found. They are going a step further than the City Sprint and Excel couriers in arguing that they are employees, with rights to sick pay, maternity leave and protection against unfair dismissal to which employees are entitled.
Annie Powell, a lawyer in the employment team at Leigh Day, which previously led the action against Uber, said: “The idea that Deliveroo riders are self-employed contractors in business on their own account and that Deliveroo is a customer of each rider’s business is absurd.
“Deliveroo riders carry out the sole function of Deliveroo – to deliver food and drink from restaurants to customers – and are tightly controlled by Deliveroo in what is clearly a dependent work relationship.”
She said the riders were required to carry out a trial shift, wear a uniform and were paid at a set rate with no say on terms and conditions. Their movements are also closely monitored by Deliveroo and subject to performance review.
“We will argue that Deliveroo has no reasonable grounds to argue that its riders are self-employed contractors and that it should immediately ensure that its riders are paid at least the national minimum wage and receive paid holiday,” Powell said.
Deliveroo said its riders continued to benefit from its growth in the UK.
“We are proud to offer flexible, well-paid work to over 15,000 self-employed UK riders, and receive over 10,000 new applications every week. Riders choose when and where to ride with us, and for how long, giving them the flexibility and freedom to work with us around their other commitments such as studying, running a small business or working for another company.”
Gig economy companies trying to have their cake and eat it, say workers
The company is facing a wave of legal action over its employment terms.
Leigh Day is also bringing an age discrimination claim for Deliveroo for a rider under 18 who says he was dismissed after Deliveroo introduced a new minimum age requirement earlier this year. A Deliveroo spokesman said: “As of January this year, Deliveroo’s minimum age requirement for new riders is 18. However, we continue to engage with riders who were already working with us and who are under 18 and above school leaving age.”
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Separately, the Independent Workers Union of Great Britain (IWGB) is fighting for the right of union recognition at Deliveroo in Camden and Kentish Town, London. The union, which led strike action over changes to pay by riders in London last year, is applying to the central arbitration committee that in May will begin by deciding if drivers should be classed as self-employed or workers.
The rise of tech companies using self-employed drivers has raised fears about radical changes in employment practices. The government recently announced a six-month review of modern working practices and HMRC is setting up a new unit, the employment status and intermediaries team, to investigate companies.
The IWGB has called on the government to improve enforcement of employment rights particularly as tribunal cases now mean hefty fees for claimants.
Steep rises in fees for bringing unfair dismissal claims at employment tribunals – which have led to a 70% fall in the number of cases – were challenged by the union at the UK’s highest court on Monday.
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Explanation / Answer
Q. Do you think that the assertion of Deliveroo in classifying its riders as contractors instead of employee is correct ?
Ans. Independent contractors are those personnel who provide services to companies and have the flexibility with regards to the location, work attire and time of rendering services. Since in the case of riders who work for Deliveroo, the riders are solely responsible for delivering food and drink from restaurants to customers and are required to wear an uniform as specified by Deliveroo and whose working times are closely monitored and tightly controlled by Deliveroo, so such a control implies that riders should not be classified as independent contractors but are rather employees because of a dependent work relationship.
Q) Why do companies try to engage independent contractors for rendering service ?
Ans. Companies try to employ independent contractors to render services to reduce their liability with regards to providing wages, protection such as insurance for life and medical and other employment related benefits. In addition, independent contractors provide the companies the flexibility of increasing or decreasing workforce on demand as opposed to having a fixed workforce if employees are engaged. This would also mean that the fixed costs of the companies are lower. So the above mentioned economic benefits encourage the companies to hire independent contractors.
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