Spain’s labor minister says Glovo violated a 2021 law requiring drivers of food delivery platforms to be signed employees with formal employment contracts – Copyright AFP Stefani Reynolds

Spain has fined food delivery company Glovo nearly 79 million euros and forced it to give work contracts to more than 10,000 runners in the country, the government announced on Wednesday.

Labor Minister Yolanda Diaz said Glovo violated a 2021 law requiring passengers on food delivery platforms to be signed employees with formal employment contracts, not freelancers.

“The full weight of the law will rest with the company,” Diaz told reporters when announcing the sanctions against Glovo.

She accused Glovo of “violating fundamental workers’ rights” and “obstructing the work of labor inspectors”.

“As a result, we have taken action against this company by granting official status to more than 10,600 workers” and imposed a “very high fine of almost 79 million euros”, Diaz added.

Glovo said in a statement that he would appeal the government’s “unilateral” decision.

Under the so-called “Rider’s Law” which came into force in August 2021, couriers who deliver food, mainly by bicycle and motorbike, must be recognized as employees instead of being considered freelancers as before .

It is the first European legislation that explicitly regulates the status of delivery people, who travel by bicycle and motorbike and whose number has exploded in recent years, despite precarious working conditions.

That means app-based food delivery companies have to pay employee dues for benefits like sick leave and layoff protections.

Shortly after the law came into force, London-based food delivery company Deliveroo announced it was pulling out of Spain.

The European Commission presented a proposal on platform work in December, which would introduce EU-wide criteria for determining whether a gig worker should be considered an employee.

The proposal still needs to be approved by EU member states and the European Parliament.