The $2.6 million question.
Recent gig economy outcomes show the importance of obtaining
early advice.
Recently, Worrells finalised its distribution of outstanding
deemed employee entitlements to delivery riders under Foodora Pty
Ltd (subject to a Deed of Company Arrangement). Approximately $2.6
million has been paid to priority creditors such as delivery riders
who were underpaid their employee entitlements by the company
treating them as contractors.
This ground-breaking work we completed involved working with the
company, the creditors including the Australian Taxation Office
(ATO) and State Revenue offices, the various regulators and the
Transport Workers Union (TWU) that represented the riders. That
work saw us arrive at a solution that facilitated the German parent
company making a significant contribution of funds; and through a
sophisticated process of calculations and engaging with the riders
to lodge claims and pay the respective riders their