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Foodora lost an unfair failure case and was ordered to pay $ 16,000 to the former supplier



November 16, 2018 19:20:42

Foodora's food lost an important court case, and the decision could have broadband consequences for Uber, Deliveroo and other companies in the gaming economy.

Key points

  • The company was ordered to pay $ 15,559 to the former driver of the supplier who took them to the Commission for work at the fair
  • It is estimated that former workers were less paid for $ 5.5 million
  • In the meantime, Foodora has offered to pay some of its debts, but less than half of what it owes in unpaid taxes and wages

The Fair Trading Commission (FVC) has decided that Foodora unfairly discarded one of its former bicycle riders, Josh Klooger, after publicly pronouncing about a worsening of wages and conditions of the company.

G. Klooger, 28, was hired in March 2016 and paid $ 14 an hour, plus $ 5 per delivery.

The company, which has since gone into voluntary administration, significantly reduced the wages for new vehicle suppliers over time.

Within two years, they were paid only $ 7 per delivery and no hourly earnings.

The FVC found that Foodora broke the contract. Chlooger in a "sharp, unjust and unreasonable" way to basically hit the whistle.

Earlier this year, Mr. Klooger also appeared on Channel Ten's project to "agitate public appeal regarding aspects of the rate paid by the driver to drivers / drivers," wrote FVC Commissioner Ian Cambridge in his decision.

He also set up an online chat room via Vhatsapp, which had more than 250 driver members and used the platform to discuss the low pay and operating conditions of the company.

Within a few days of speaking on TV, Management of Foodora sent Mr. Kloogeru e-mail, arguing that he "potentially violated confidentiality and intellectual property rights" by holding a group of Vhatsapp workers.

He asked Mr. Klooger to hand over the rights to access online chat, which he refused.

Foodora immediately terminated the contract.

He then sued for unjust dismissal with the help of the Transport Workers' Union.

The commissioner finally found a replacement of Mr. Klooger via email "without any appropriate prior warning, was obviously unjust, obviously unreasonable and unnecessarily sharp," and he pointed out that he was an exemplary employee.

"The applicant was obviously a highly successful supplier, he was previously promoted to a managerial position, and his entrepreneurial acumen was recognized and welcomed by the manager of Foodor," Cambridge wrote.

The Commission took into account the "Food" system

In particular, the FVC noticed the Foodora's "series" system, which former drivers described as "oppressive" hierarchy sitting against each other.

This has been proven that Foodora exercised a high degree of control over its employees – so they were employed, not the contractors.

This difference is important because it endangers business models of companies like Foodora.

By classifying their thousands of workers as "independent contractors", they avoid the payment of annual leave, sick leave, compensation and other expensive rights of employees.

Foodora's policy was rewarded with Batch 1 – the top 10% of drivers – based on the most hours worked on the evening and weekends.

They got the first shift choice for the next sheet.

But it punished all the others, especially the bottom 40 percent, who remained with the last piece of the next shifts.

FVC ordered the company Foodora to pay for Mr. Cloogeru $ 15,559 as compensation for unfair dismissal.

But it may be difficult to search for that money.

The company is now out of business in Australia, however owes its former workers, state and federal tax authorities, as well as 28 million "loans" to the parent company Deliveri Hero from Germany.

"This fight does not end here, we will continue to continue with the money for the money still owed to drivers in Australia," said State Secretary Tony Sheldon, adding that the decision was "the world's first."

"We will continue to demand the end of exploitation of drivers and other economic workers on demand.

"This is a titanic wave that comes to every employer who uses payroll as a business model through the application."

Mr. Klooger is reasonably pleased with the decision.

"Drivers should be able to earn a decent life and do not see how their wages are continually decreasing," he said.

"They should be able to stand up and challenge employers when changes are introduced that affect their lives. I hope this decision encourages the government to create drivers and provide protection at work."

G. Chlooger previously said he felt compelled to endure for new drivers, many of whom were foreign students.

Today he said he would now look for a different job "probably not tied to the food industry".

Foodora offers to pay debts, but not completely

At a meeting of creditors earlier today, the parent company of Foodora has offered to pay a total of $ 3 million to all its creditors, which is less than half of what it owes.

The Australian Tax Office claims that the collapsed shipping company owed $ 2.1 million of unpaid taxes, and Revenue NSV is asking for more than $ 550,000.

In the meantime, Victoria and Kueensland revenues potentially require an estimated $ 400,000.

In addition to the large tax debts, the group that owes most money to Foodora is its former workers.

Foodora's administrators Vorrells estimate that former workers were less paid for $ 5.5 million because they "are more likely than not … Suppliers and drivers should be classified as casual employees instead of a contractor."

But Vorrels suggested it would not be worth looking for Hero Hero for debts in German courts because "costs and time to resolve any claims will have a major impact on any distribution received by creditors."

Managers of Foodora said that drivers who were now legally classified as employees could assess their claims against the company.


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