Dear Deliveroo…

An open letter to Will Chu, founder of Deliveroo

Dear Mr Chu

I read with interest your recent comments that you’re unable to offer the riders who work for Deliveroo better terms and conditions because to do so would ‘risk the flexibility’ that they enjoy.

I fully understand that entrepreneurs who have a great business idea aren’t always experts in things like marketing, finance or – in this case – managing people. But most of those who make a success of their business get expert advisers to guide them through these issues and ensure that they support their business aims in a legal and effective way.

I can only assume that you haven’t done so when it comes to employment matters, so I’m happy to correct some misapprehensions you seem to have.

Firstly, you suggest that it’s up to the Government rather than your company to define individual employer status. Actually, it’s not. There are a number of long-established legal tests that can be applied to determine whether someone is an employee, a worker, or self-employed. It may be true that 21st century economy needs 21st century legislation – and certainly the Government are looking at this at the moment – but at the moment the existing legislation does seem to be able to deal with most situations, even in the dynamic ‘gig economy’.

Secondly, employment status doesn’t prevent you offering flexible working arrangements or work patterns.  I’d have thought the data you collect on ordering times for takeaway meals would allow you to identify regular peaks and troughs in demand and schedule your labour requirements accordingly. Using a bank of casual labour, paid through the payroll, would allow you to offer sick pay, holidays and pensions to your regular core workers and supplement these at peak times.  It’s a bit of a 20th century solution, but sometimes old ideas still work effectively

Finally, I have to say that trying to disguise the nature of the working relationship – by using phrases like “invoice” not “timesheet” and “branding guidelines” instead of “uniform” – won’t cut the mustard if you’re challenged. Employment Tribunals will look at what actually happens rather than the words on a page and are pretty adept at seeing through sham arrangements.

I’m always happy to help growing businesses avoid simple employment mistakes and so if you need some further advice please give get in touch, although if you do have 15000 workers I’d probably suggest you need to have some full time in-house expertise. You might find my book helpful though, it sets out clearly and simply what entrepreneurs and small business owners need to know about people management.

Best wishes

Simon

 

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