3.2 Supreme Court ruling 805/2020. The end of the doctrinal conflict.
In its capacity as a unifier of the doctrine, on September 25, 2020, the Supreme Court published a ruling in which it unified the doctrine in relation to the distributors of companies such as those seen above and these, and their relationship.
It should be clarified that, after recalling the Court in a first instance of the basic legislation referred to in the Workers' Statute, it also cites and highlights both doctrine and jurisprudence of European origin, as is the case of case C-692/19 and the Directive 2003/88/CE.
[1]
This sentence is based on the parameters and values that dictate and indicate the existence (or non-existence) of the employment relationship, being alienation and subordination.
Regarding subordination, we return to the conflict to which we have referred with the first Madrid sentence; Can drivers choose their own hours? Can you refuse orders freely?
There is a false sense of freedom, not real freedom, as there are elements within the relationship between the company and the dealer that conditions the choice. From a purely theoretical point of view, could the dealer reject the orders? Yes. However, there is a form of penalty in the form of the delivery person's rating system, which also influences the allocation of orders.
In other words, if the delivery person rejects an order, this action (in theory without consequences) will lower his score, which will result in a reduction in the allocation of orders, which will constitute a reduction in compensation. By working with fewer orders, at the end of the month you will charge less.
This refers to orders, but the issue of schedules is also defended, where again in the wonderful world of theory, the worker has absolute freedom in choosing their schedules.
But here the trap returns; You can work whenever you want, but if you work outside of the established hours, as well as if you reject orders, it will affect your evaluation system.
Therefore, although there is formal freedom, they are not completely free, as there are a series of negative economic consequences.
[2]
Regarding this subordination, we must also look at the existence (or non-existence) of a follow-up by the company to the workers. In this case, the company does establish measures to control not only the result but also the activity itself, in the form of satellite geolocation, or GPS. This sentence declares it so when claiming this as a "relevant indication of dependency" in its legal basis 19.
This consideration of GPS as a control mechanism is absorbed by the Superior Court of Justice of Asturias, in its judgment 1818/2019, of July 25, once again emphasizing the unifying character of the doctrine.
And it would not be worth investigating the disciplinary power of the company. As there are no clear and concise punishment measures on the part of the company, there are rulings that due to this absence the labor nature of the contractual relationship would not exist, as is the case of SJS nº 24 of Barcelona 205/2019 of May 29 and the SJS nº17 of Madrid 12/2019 of January 11.
In reference to this, the Supreme Court affirms that some causes of termination of the contract are a "literal transcript" of the Workers' Statute, settling the debate on this principle.
With regard to alienation, we must take into account what this principle refers to. According to this, he will be considered a worker if he is alien to the possession of the means of production necessary for the activity.
Here we would enter the debate about what would be considered as the means of production in this topic. There are sentences that base that these elements are constituted through the mobile phone and the method of transport, referring then to the fact that the delivery men have full control and possession of the means of production and for which there is not enough alienation to declare the employment.
[3]
In this case, then, we find a clear debate and conflict. What are the means of production in this case? Professor Eduardo Rojo explains that, in this very specific case, the mobile phone and the bicycle would not constitute a means of production, but rather tools, the means of production being the same application.
[4]
The Supreme Court agrees with that preliminary analysis that I have exposed by Professor Eduardo Rojo, taking into account that it is an argument endorsed by part of the labor jurisprudence.
It is explained that, qualitatively, the fundamental medium does not consist of the bicycle or mobile phone of the delivery man, but the computer application and the brand.
[5]
This refers to the fact that, although the delivery person has what is necessary to carry out this, they are goods of reduced cost and economic value compared to the digital platform, this being the true essentiality.
[6]
This refers to the alienation related to the media, but it is not the only alienation that we must take into account. The market must also be studied, and it is evident, since the distributor does not have any kind of relationship between the user, the establishments and GLOVO, he is oblivious to the existing triangular relationship, and he does not have any kind of decision-making power when determining the considerations are predefined by the GLOVO company.
Exactly, the court concluded “the delivery people are not party to the existing legal business with the restaurants and with the recipients of food”, and that both consumers and establishments are clients of GLOVO, not the delivery person.
[7]
In the alienation of the fruits, it is clear that the fruits of the service come from a union between the amount paid by the establishments and the price of the clients, making the company its own the result. Likewise, the distributor does not intervene in relation to the price or the payment conditions.
[8]
Likewise, the delivery man would not respond to the client in any case, or that he would assume damages or losses, giving the magistrate the necessary determination to establish that when the salary is obtained per unit of work, not charging the amount of a service not performed there is no risk and fortune of the worker.
[9]
In relation then to the alienation of the risks, although in lower courts it constituted a great cause for debate
[10], needing to know what consequences exist for the delivery person the possible complications in the service, being aware that obtaining the salary is only done with the correct provision from service. Without the existence of the distribution, there is no salary, being able to fit perfectly in article 26 of the Workers' Statute when rewarding effective work.
The brand is also important, explaining that the success of the application is not based solely on the existence of the application itself, but also on a brand owned by the company.
[11]
The idea of
special risk-profit also arises [12]in which the Supreme Court affirms that this binomial typical of self-employment cannot be considered to exist.
It is due to these notes of alienation and subordination that the Supreme Court, in the end, demonstrates the labor nature of the relationship. "Not only does it confirm that the contractual relationship between the delivery person and the company, but also, by updating the signs of employment, it shows that our current labor framework is capable of responding to the demands arising from new forms of work."
[13]
The signs of employment highlighted by the Supreme Court, as Josep Moreno Gené schematically indicates
[14], are the following:
- The existence of the valuation system.
- GPS geolocation.
- Giving instructions on how to place the order and checking that these instructions are followed.
- The provision of a company credit card for the delivery person to obtain the user's order.
- The provision of an advance of €100 to the delivery person by Glovo to start the work activity.
- Financial compensation for waiting for the delivery person at the pick-up location.
- Establishing up to 13 causes of termination of the contract for non-compliance by the worker identical to the disciplinary dismissal of the Workers' Statute.
- GLOVO's exclusive knowledge of the business system information.
In consequence of all the above, the court rules in a final way:
“Glovo is not a mere intermediary in the contracting of services between businesses and delivery people. It is not limited to providing an electronic intermediation service consisting of putting consumers (customers) and authentic self-employed workers in contact, but rather it carries out a task of coordinating and organizing the productive service.”
Here I want to highlight the fact that we have observed in our first point, about what the companies defended; being mere intermediaries. This fact and neuralgic point of the argument, for the Supreme Court, has been completely annulled, and from this first link, in the rest of the sentence and the ruling, a domino effect is observed that ends with the ruling, at this point, obviously : The distributors, or
riders are employed by others.
[1]MORENO GENÉ, J. “The labor nature of the provision of delivery services through the GLOVO digital platform: The Supreme Court settles the debate”. In
IUSLabor , 3/2020 p. 42
[2]RUZ LÓPEZ, JMª: “Judicial analysis of the legal nature of the contractual relationship at work in urban distribution platforms”. In
Ibero-American Journal of Labor Relations , 2020 (38), p. 159
[3]RUZ LÓPEZ, JMª: “Judicial analysis of the legal nature of the contractual relationship at work in urban distribution platforms”. In
Ibero-American Journal of Labor Relations , 2020 (38), p. 160
[4]ROJO TORRECILLA, E.: “Yes, the Glovo saga (and the glovers) deserve a case study. Notes to the judgment of the TS of September 25, 2020, which declares employment, and reminder of the judgments of JS no. 39 of Madrid of September 3, 2018 and of the TSJ of Madrid of September 19, 2019(I)”. In
The new and changing world of work. An open and critical look at the new labor realities. [online] (available at:
http://www.eduardorojotorrecilla.es/2020/10/pues-si-la-saga-glovo-y-los-glovers.html ; access date: 6/11/2022 ).
[5]RUZ LÓPEZ, JMª: “Judicial analysis of the legal nature of the contractual relationship at work in urban distribution platforms”. In
Ibero-American Journal of Labor Relations , 2020 (38), p. 160
[6]MORENO GENÉ, J.: "The labor nature of the provision of delivery services through the GLOVO digital platform: The Supreme Court settles the debate." In
IUSLabor 3/2020, p. 36
[7]RUZ LÓPEZ, JMª: “Judicial analysis of the legal nature of the contractual relationship at work in urban distribution platforms”. In
Ibero-American Journal of Labor Relations , 2020 (38), p. 162
[8]RUZ LÓPEZ, JMª: “Judicial analysis of the legal nature of the contractual relationship at work in urban distribution platforms”. In
Ibero-American Journal of Labor Relations , 2020 (38), p. 161
[9]MORENO GENÉ, J.: "The labor nature of the provision of delivery services through the GLOVO digital platform: The Supreme Court settles the debate." In
IUSLabor 3/2020, p. 37
[10]RUZ LÓPEZ, JMª: “Judicial analysis of the legal nature of the contractual relationship at work in urban distribution platforms”. In
Ibero-American Journal of Labor Relations , 2020 (38), p. 160
[11]RUZ LÓPEZ, JMª: “Judicial analysis of the legal nature of the contractual relationship at work in urban distribution platforms”. In
Ibero-American Journal of Labor Relations , 2020 (38), p. 160
[12]RUZ LÓPEZ, JMª: “Judicial analysis of the legal nature of the contractual relationship at work in urban distribution platforms”. In
Ibero-American Journal of Labor Relations , 2020 (38), p. 161
[13]RUZ LÓPEZ, JMª: “Judicial analysis of the legal nature of the contractual relationship at work in urban distribution platforms”. In
Ibero-American Journal of Labor Relations , 2020 (38), p. 164
[14]MORENO GENÉ, J.: "The labor nature of the provision of delivery services through the GLOVO digital platform: The Supreme Court settles the debate." In
IUSLabor 3/2020, p. 47