MADRID, Sept 21 (Reuters) – Spain’s labour ministry has fined Delivery Hero’s local unit Glovo 79 million euros ($78 million) for violating a law requiring food delivery companies to formally hire riders, Labour Minister Yolanda Diaz told reporters on Wednesday.
“(Glovo) has violated fundamental labour rights and they have obstructed the work of the investigation. For this reason, action has been taken against this company,” Diaz said.
“We will make them comply with the law,” she added.
A representative for Glovo was not immediately available for comment.
In 2021, Spain passed a law requiring that riders for food delivery platforms be employees signed to formal labour contracts, not freelancers.
The company has refused to give labour contracts to more than 10,600 riders in the country’s second and third largest cities, Barcelona and Valencia, since the law came into effect last year, the labour ministry said in a statement.
Local radio station Cadena SER first reported the fine.
($1 = 1.0101 euros)
(Reporting by Christina Thykjaer Editing by Jason Neely and Mark Potter)