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Dismissal of employees due to Deliveroo self-management

Thousands of food delivery riders were awakened by the news that they had lost their jobs, and many more were predicted to be laid off due to Deliveroo’s sudden closure.

Got a food delivery company Self-management in Australiacites low profitability in a highly competitive market as the reason behind its collapse.

Transport Problems Party leader Rod Burton said gig economy businesses were being given “free rein” by the Victorian government.

“Unsafe work has become the new normal, forcing workers to fight for rights they won decades ago,” he said.

“I feel like I’m going backwards.

“These riders have nothing to fall back on.”

camera iconFood delivery service Deliveroo began voluntary management in Australia on Wednesday. NCA NewsWire / David Swift credit: News Corp Australia

Burton said there is an urgent need to reform the gig economy. Otherwise, more companies will withdraw from the market.

“There is no safety net in the gig economy,” he said.

“These companies will do whatever it takes to make a profit.

“Only government regulations can protect workers from exploitation and harassment.

“Reform will not come quickly.”

minutes of parliament
camera iconTransport Matters Party leader Rod Barton wants immediate reform to keep the gig economy business from collapsing further. NCA NewsWire / Paul Jeffers credit: News Corp Australia

Volunteer manager KordaMentha said riders were out of work on Wednesday.

“The company has ceased trading with immediate effect and will no longer be accepting orders or expediting deliveries in Australia,” KordaMentha said in a statement issued to interested parties.

“Administrators will contact you shortly regarding administrative implications and will provide details on how to submit proof of debt forms for outstanding amounts.”

Another document outlines how riders are considered contractors rather than employees, are disenfranchised, and are considered “unsecured creditors.”

The transport union has called for an “urgent meeting” with managers, stressing that passengers are “devastated by the sudden loss of jobs”.

“This will come as a shock to the thousands of food delivery riders who rely on Deliveroo for their income,” TWU Secretary of State Michael Caine said Wednesday.

“TWU has called for urgent consultation with management regarding what entitlements may be reinstated for food delivery riders who stand to lose their jobs in the blink of an eye.”

https://thewest.com.au/business/workers-sacked-after-deliveroo-goes-into-voluntary-administration-c-8885421 Dismissal of employees due to Deliveroo self-management

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