Search

How can we help?

Icon

Deliveroo: Late substitution leads to a win against the run of play

The Central Arbitration Committee (CAC) has finally given its decision on whether a particular group of Deliveroo riders – those in the Camden/Kentish Town area of North London who are paid per delivery – are workers of Deliveroo or are independent suppliers of services to Deliveroo.

The hearing was in May 2017. As we noted at the time, shortly beforehand Deliveroo had changed its rider contracts, removing prohibitions on riders carrying out deliveries for other companies and the requirement to wear Deliveroo-branded clothing or to give notice of termination.

Although this group of riders’ claim to be Deliveroo’s workers was made in order to establish their right to seek collective representation by a union, essentially the same definition of worker is also used for entitlement to receive national minimum wage, holiday pay and sick pay.

The question of whether Deliveroo deliberately engineered the new contractual terms to prevent a finding that riders are workers is not relevant. What is relevant is identifying the contractual terms the parties agreed in the written contracts and by their working practices.

Crucially, the CAC found that (a) under the new contracts riders are permitted to engage a substitute to carry out deliveries, (b) in fact they sometimes do so and (c) there is no penalty from Deliveroo if they do. An individual who is not required to perform the work personally, cannot meet the legal definition of worker so the CAC decided that these riders are not Deliveroo’s workers.

While this goes against the recent trend of high-profile gig economy decisions such as Uber and CitySprint, this is because the working arrangements for this group of Deliveroo riders is different to those cases.

The question of whether Deliveroo deliberately engineered the new contractual terms to prevent a finding that riders are workers is not relevant.

It is equally important to note that the CAC made no finding as to whether these Deliveroo riders were workers under their previous contracts. If they were, they could bring tribunal claims (within 3 months) for national minimum wage/national living wage, holiday pay and sick pay or civil court claims (within 6 years) for national minimum wage/national living wage only. There is also the risk of individuals referring this to HMRC, which has sweeping powers to order back payments and impose punitive fines.

The riders in the Deliveroo case were not claiming to have been employees with rights to make claims for unfair dismissal or redundancy payments but this is likely to be the next frontier in claims against gig economy companies.

In addition, any business seeking to restructure in order to emulate Deliveroo should proceed with caution. If such changes have the effect of terminating the employment of 20 or more employeesthe business could end up with very serious legal and financial liabilities under collective consultation obligations .

Disclaimer
This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.

Author profile

About this article

Read, listen and watch our latest insights

Pub
  • 08 January 2026
  • Privacy and Data Protection

Data Protection Audits: Launch Event

Join us for a breakfast networking session on Thursday 26th February 2026 as we officially launch our Data Protection Audit services.

art
  • 08 January 2026
  • Privacy and Data Protection

Data Protection – what’s happened in 2025?

2025 has been a lively year for the data protection sphere, with the main talking point coming from the UK’s data reform Bill finally receiving Royal Assent on 19 June 2025.

art
  • 07 January 2026
  • Commercial Real Estate

Real Estate: update and 2026 expectations

The previous year has been an eventful one for the commercial property sector.

art
  • 06 January 2026
  • Commercial Real Estate

FAQ – Buying a commercial property in England and Wales

If you want to invest in the commercial property market in England and Wales (the two countries share the same jurisdiction), it is important to understand that the process differs significantly from buying a property in France.

art
  • 05 January 2026
  • Immigration

UK Immigration changes in 2025: What to expect in 2026

This wrap-up brings together the key developments from across the year, highlighting what has changed, what is still evolving, and what organisations should be planning for as we move into 2026.

Pub
  • 01 January 2026
  • Public Procurement

Procurement Challenges under the Procurement Act 2023

Taking prompt advice is essential as unsuccessful bidders have just ten days within which to issue court proceedings if they want to benefit from the automatic suspension provided for in the Regulations, which prevents the contracting authority from awarding the contract to anyone else.