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Home food delivery company Glovo hit with another 38 million euros of fines in Spain

Home food delivery company Glovo hit with another 38 million euros of fines in Spain

The latest fines were for having 7,022 workers not registered with Social Security, and also using 813 irregular workers – foreigners without work permits

LUCÍA PALACIOS / EDURNE MARTÍNEZ

MADRID.

Wednesday, 25 January 2023

A new multi-million-euro fine has been imposed on Glovo, adding to a long list of lawsuits for circumventing Spanish regulations. The Labour and Social Security Inspectorate has fined the home food delivery company 38.1 million euros for using delivery riders who were not correctly registered as required under the rider law, a Ministry of Labour source told SUR on Tuesday.

The inspection fined Glovo 32.9 million euros for using 7,022 workers in Madrid without registering them with the Social Security, for which the company must make up for a lack of payment contributions for these employees.

In addition, the platform has been fined a further 5.2 million euros for having 813 irregular workers – foreigners without work permits. This is on top of 19 million euros to make up the missing payments. Therefore , the sum of the fines and the settlement proceedings amounts to 56.7 million euros. The total number of workers amounts to 7,835. The Ministry of Labour is considering taking the company to the Public Prosecutor's Office for a crime of exploitation for working with undocumented workers.

However, Glovo told the newspaper that the inspection period referred to in the Labour inspection report is "prior" to the entry into force of the rider law. They claim that the proposed sanction also refers to an operating model "that no longer exists in Spain" and point out that there is no report from the labour inspectorate on the model with which the company currently operates in Spain once the rider law came into force. Glovo said that they will appeal the proposed fine.

With this new action, Glovo has accumulated more than 205.3 million euros in fines in Spain for irregularly employing 37,348 workers.

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