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ARTICLE · 16 SEPTEMBER 2019

Foodora riders: employee entitlement underpayment

Advisors and business owners should get early expert advice on this issue of employee versus contractor entitlements.

AustraliaEmployment and HR

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

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