Co-funded by the European Union

Spain approves a “Riders Law”

  • The “Riders Law” will enter into force on 12 August 2021.
  • It is the result of a tripartite agreement, reached after 5 months of negotiation.

In October 2020 we released an article on the Spanish Supreme Court decision on the employment status of Deliveroo’s workers and the first steps towards the elaboration of a so-called ‘Riders’ Law’.

The ‘Riders’ Law”, published in the Official Bulletin on 12 May (Real Law Decree N. 9/2021, 11 May 2021), revises the Workers’ Statute to “guarantee labor rights to individuals working in distribution via digital platforms”.

It is a pioneering regulation in Europe and derives from a tripartite agreement of the Government, CC.OO and UGT (trade unions), CEOE and CEPYME (employers’ organisations), reached on 10 March 2021.

The social partners agreed on two main points:

  • it is recognised that the riders, under specific features, have an employment status (23 additional provision);
  • the works’ council (‘Comité de empresa’) must be informed of the “parameters, rules and instructions” that determine the work of the algorithm (Article 64.4 d).

There is a presumption of employment “for the activities of distribution of any type of product or merchandise, when the employer exercises its faculty of organization, direction and control, directly, indirectly, or implicitly, through the algorithm management of the service or working conditions, via a digital platform”. Said presumption, therefore, does not affect all digital platform work but only the delivery ones. This is in line with the recent Spanish Supreme Court decision for the case of Glovo (STS 805/2020, 25 September 2020).

Also, it says that it does not affect the exclusions foreseen in Article 3.1 of the Workers’ Statute.  Hence, the Law explicitly excludes from the application of the ‘Riders Law’ those who provide transport services under administrative authorization and when they are the owner of the vehicle, even if the service is provided always for the same marketer.

The second element is quite innovative on a global perspective, since it establishes a right of information of works’ councils on algorithms or artificial intelligence that influences working conditions, including access and maintenance of employment and the elaboration of workers’ profiles. This provision applies to all companies.