The checks were carried out as a result of suspicion that a number of these suppliers were not registered correctly, or in some cases, not at all. The ITM declined to release further details as an investigation is currently ongoing.
However, the information shows there is still a need for clarification when it comes to working conditions, terms, and relations between delivery drivers and online platforms.
Three years ago, the administrators of the company HT Layer Europe, which operates the Wedely delivery services, had already been sentenced to fines by a court because they had resorted to using unregistered drivers.
The business of delivery platforms is booming across Europe and also in this country, after experiencing a popularity boost during the coronavirus pandemic. For years, however, trade unions, traditional companies and selected politicians have warned against issues plaguing the sector, such as unfair competitive practices, poor pay, and lack of social protection for drivers.
The LCGB’s Marco Wagener says this could be down to the fact that the drivers are frequently young people, or newly arrived in the country, and could “forget” to register. They also might not be aware that their remuneration is gross and not net pay.
But the real problem highlighted by the trade union member is “sham self-employment”. The drivers are not self-employed, but employees, and therefore should be registered and insured by the business. If the delivery platforms issue rules and can sanction the drivers, then it is clearly “an employment relationship.”
Marco Wagener also highlights an EU directive for online platform work, which was approved by the European Parliament in April. The main point is that delivery drivers are viewed as employees, unless the platform can prove they are self-employed.
Ludvig Helmertz, interim director of Wolt in Luxembourg, said it was simple to prove. First, he said drivers are also able to deliver for other platforms and are therefore flexible. “They decide when they are online or offline, they decide to accept a task or not. Income is always shown in advance.”
In Helmertz’ eyes, it was therefore clear that drivers were responsible for registering themselves with social security. Regardless, Wolt always checks if documents are in order when a new driver uses their algorithm. As drivers earn an average of €19.3 per hour, Helmertz said it should not be difficult for them to bear the contributions.
Wolt told RTL they had not been contacted regarding the ongoing ITM investigation. This could mean that drivers were checked independently of the platform.
However, as long as the EU directive is not implemented in Luxembourg, the issue will persist. The former government proposed creating a framework for online platform services. New labour minister Georges Mischo confirmed plans to implement the directive in June, but said it would not go further than what was necessary.
