Deliveroo offers workers 'pay per trip'
05 June 2017
According to a report from The Telegraph, takeaway technology firm Deliveroo is offering its drivers the option to be paid for each order they deliver, rather than per hour - a move which the company hopes will reinforce the riders’ status as self-employed contractors, rather than employees.
A row over the workers’ status has flared up as some of the delivery riders want full rights as employees, arguing that they only work for Deliveroo which effectively makes them employees, and so they should have rights to sick pay, holidays and other benefits.
The company is offering 3,000 of the riders the option of taking payment per delivery which will amount to between £3.75 and £4 per trip depending on the location in the country.
It told riders that in tests so far the workers who have chosen this option earn an average of £12 per hour worked, compared with £9.50 for those who use the current system which pays them on an hourly basis plus £1 per delivery.
Those who do opt for the new system have additional inducements, including the option to see the orders which come in so they can reject any they do not want, as well as extra information on the times at which Deliveroo is busiest and so when they will receive the most work.
However it could hit earnings for those working in quieter times of day, and make longer journeys less appealing.
Taylor Review of modern employment practices
The issues around the ‘gig economy’ have and continue to receive a lot of attention and in 2016 the Prime Minister asked Matthew Taylor, Chief Executive of the RSA, to carry out a study on the employment implications. In November 2016 the review was launched with a regional tour to discuss the UK’s labour market; speaking to workers and employers working in sectors such as the gig and rural economies and manufacturing, to fully understand the impact of modern working practices and how different labour markets work.
The review is addressing 6 key themes:
Security, pay and rights
To what extent do emerging business practices put pressure on the trade-off between flexible labour and benefits such as higher pay or greater work availability, so that workers lose out on all dimensions?
To what extent does the growth in non-standard forms of employment undermine the reach of policies like the National Living Wage, maternity and paternity rights, pensions auto-enrolment, sick pay, and holiday pay?
Progression and training
How can we facilitate and encourage professional development within the modern economy to the benefit of both employers and employees?
The balance of rights and responsibilities
Do current definitions of employment status need to be updated to reflect new forms of working created by emerging business models, such as on-demand platforms?
Could we learn lessons from alternative forms of representation around the world?
Opportunities for under-represented groups
How can we harness modern employment to create opportunities for groups currently underrepresented in the labour market (the elderly, those with disabilities or care responsibilities)?
New business models
How can government – nationally or locally – support a diverse ecology of business models enhancing the choices available to investors, consumers and workers?