N※N

Italian Court Orders Deliveroo to Reclassify 40,000 Riders as Employees

  //business-finance.news-articles.net/content/202 .. oo-to-reclassify-40-000-riders-as-employees.html
  Published in Business and Finance on Thursday, February 19th 2026 at 16:55 GMT by reuters.com
      Locales: Lombardy, ITALY

Milan, Italy - February 19th, 2026 - A Milan court today delivered a potentially seismic blow to the gig economy in Italy, and potentially across Europe, ordering Glovo's Italian food delivery arm, Deliveroo Italia, to reclassify approximately 40,000 of its riders as employees. The ruling, a culmination of a protracted legal battle, mandates that Deliveroo Italia provide these workers with full employment contracts, including associated social security benefits and protections afforded under Italian labor law. Glovo, the Spanish delivery giant, has announced its intention to appeal the decision, maintaining its position that the riders operate as genuinely independent contractors.

This verdict echoes a growing trend of legal challenges targeting the classification of workers in the 'rider economy' - the rapidly expanding sector characterized by on-demand delivery services reliant on a network of independent contractors. Similar lawsuits have been waged against companies like Uber, Just Eat Takeaway, and other platforms throughout Europe, reflecting a broader debate about worker rights in the digital age. The Italian ruling, however, stands out due to the sheer scale of workers affected, making it one of the most significant judgements of its kind.

The court's rationale centers on the degree of control Deliveroo Italia exerts over its riders. While the company has consistently presented the riders as independent, the court found compelling evidence to suggest a significant level of direction and oversight, resembling an employer-employee relationship. Factors considered included the algorithms used to assign deliveries, the performance metrics tracked, and the degree of control over delivery routes and schedules. The court deemed these controls sufficient to negate the claim of genuine self-employment.

"This is a win for worker rights and a clear signal that the gig economy cannot operate outside the bounds of established labor laws," stated Marco Rossi, lead counsel for the union representing the riders. "For too long, companies have exploited loopholes to avoid their responsibilities to those who power their services. This ruling forces them to acknowledge the true nature of the relationship and provide basic protections for these workers."

The implications of the ruling are far-reaching. Deliveroo Italia now faces a substantial financial burden associated with back-payment of social security contributions, payroll taxes, and potential severance obligations. Beyond the immediate financial impact, the company will have to overhaul its operational model to accommodate employee status, including managing payroll, providing benefits, and complying with collective bargaining agreements.

Analysts predict this decision will trigger a domino effect, prompting similar legal action against other delivery platforms operating in Italy. Just Eat Takeaway Italia and Uber Eats Italia are both facing ongoing investigations into worker classification, and this ruling will likely strengthen the case for reclassification. Some legal experts suggest that the ruling could even necessitate a nationwide regulatory overhaul, clarifying the definition of 'independent contractor' in the context of the gig economy.

The wider European context is also crucial. The European Commission has been increasingly focused on platform worker rights, with proposals for a directive aimed at improving working conditions for those in the gig economy. This Italian ruling provides a powerful legal precedent that could influence the interpretation and implementation of the directive across member states. Countries like Spain and the United Kingdom have already seen similar, though smaller-scale, legal challenges to gig economy employment models.

Glovo, in its statement, expressed disappointment with the ruling and reiterated its belief in the flexibility and autonomy offered by its current contracting model. The company argued that the ruling ignores the preferences of many riders who value the independence and earning potential provided by the platform. Glovo intends to appeal, arguing that a forced shift to employee status would significantly increase operating costs and potentially curtail the service available to customers. They also highlighted that a significant number of riders use the platform as a supplemental income source and would likely prefer the flexibility of remaining independent.

The long-term consequences of this ruling remain to be seen. While worker advocates hail it as a victory, some economists warn that increased labor costs could lead to higher delivery fees for consumers or potentially reduced service availability. The balance between protecting worker rights and fostering innovation in the gig economy will continue to be a defining challenge for policymakers in the years to come.