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Spain slaps fresh fine on food delivery firm Glovo

Spain’s labour ministry said Tuesday it has slapped app-based food delivery company Glovo with a new fine of 57 million euros ($62 million) for violating labour laws

Glovo, which belongs to German firm Delivery Hero, was fined for not giving its riders formal labour contracts as required under a 2021 law and for giving gigs to nearly 800 irregular immigrants without work permits, a ministry spokesman said.

Under the so-called Rider Law that came into effect in August 2021, couriers who deliver food, mostly on bicycles and motorcycles, must be recognised as employees instead of being considered self-employed freelancers as before.

It is the first European legislation that explicitly regulates the status of delivery workers, who get around on bikes and motorcycles and whose numbers have exploded in recent years, despite precarious working conditions.

“No company, no matter how big or small, should remain outside the law,” Labour Minister Yolanda Diaz told reporters.

Last year the labour ministry hit Glovo with a fine of 79 million euros for infringements of the Rider Law.

Glovo said it would appeal the latest fine. It argues the infringements cited by the labour ministry took place before the Rider Law came into force.