Lieferando is eliminating its employee delivery-person positions in Austria

Why is this a significant step?

The majority of food delivery workers worldwide work as contractors, which means they are responsible for their own social security, insurance and other employee benefits. Employee status is rare in this sector and has been a hot topic of debate for years. Lieferando was the only major player in Austria to offer this form of employment as an option, while its competitors, Foodora and Wolt, operate exclusively on an entrepreneurial basis.

How will it affect couriers?

There are currently around 5,000 food delivery workers working in Austria, of which 2,000 are currently employed. These delivery workers were paid on the basis of a sectoral collective agreement, which provided them with the following benefits, among others:

• Paid leave
• Year-end bonus
• Sunday and public holiday allowance
• Alimentary allowance and other social benefits

Following Lieferando’s decision, the affected workers will no longer be able to continue their work as employees, but will only be able to continue working as contractors or will have to look for another job.