Meal delivery app Deliveroo has won a case in the Central Arbitration Committee (CAC) to confirm that its delivery riders are not "workers".
A deliveroo worker cycles along a pedestrianised road in Liverpool, Britain, October 18, 2017.
The committee added: "Since we have found that the riders are not workers, we can not accept the Union's claim for recognition and for rights to negotiate on pay, hours and holidays with Deliveroo".
"We welcome the decision of the Committee".
Dan Warne, Managing Director for Deliveroo in the United Kingdom and Ireland said: "This is a victory for all riders who have continuously told us that flexibility is what they value most about working with Deliveroo". This would also have afforded them certain rights, such as to the minimum wage and holiday and sick pay.
But the CAC found they were self-employed because of their freedom to "substitute" - allowing other riders to take their place on a job. 85 percent of you tell us that flexibility is why you work with Deliveroo and that is why today's decision is so important. Being unable to send someone else to do your work is a key definition of a worker, an employment classification that carries the right to the national minimum wage, union recognition and holiday pay.
Jason Moyer-Lee, the IWGB general secretary, said: "It seems that after a series of defeats, finally a so-called gig economy company has found a way to game the system".
"As we have consistently argued, our riders value the flexibility that self-employment provides".
"On the basis of a new contract introduced by Deliveroo's army of lawyers just weeks before the tribunal hearing, the CAC decided that because a rider can have a mate do a delivery for them, Deliveroo's low-paid workers are not entitled to basic protections".