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

art
  • 15 September 2025
  • Immigration

Sharp rise in Sponsor Licence Revocations – What employers need to know

The Home Office has reported a record number of sponsor licence revocations over the past year, as part of its intensified efforts to crack down on abuse of the UK’s immigration system.

art
  • 10 September 2025
  • Commercial Real Estate

Trouble at the Table: The Challenges Facing the UK Hospitality Sector in the run up to Christmas 2025

The UK hospitality sector, long celebrated for its vibrancy and resilience, is facing a perfect storm of economic, operational, and structural challenges in 2025.

art
  • 09 September 2025
  • Commercial Real Estate

Le bail commercial anglais: quelques points essentiels à considérer

Typiquement, les baux commerciaux en Angleterre sont de court terme, d’une durée de 5 ou 10 ans, avec un loyer de marché et des ajustements du loyer périodiques en fonction de l’inflation ou d’autres facteurs. 

art
  • 09 September 2025
  • Corporate and M&A

The Failure to Prevent Fraud Offence – be prepared to avoid criminal liability

The failure to prevent fraud offence is a new corporate offence which has come into force on 1 September 2025.

art
  • 08 September 2025
  • Employment

Can employers still make changes to contracts after the Employment Rights Bill?

The short answer is yes but it will be much more difficult for employers following the introduction of the Employment Rights Bill because their ability to fairly dismiss employees who do not agree contractual changes is being restricted. 

art
  • 05 September 2025
  • Privacy and Data Protection

When Ignoring a DSAR Becomes a Criminal Offence

On 3 September 2025, Mr Jason Blake appeared at Beverley Magistrates Court and was fined for failing to respond to a data subject access request (DSAR).