BRUSSELS (Reuters) - A Brussels labour court ruled on Friday that Deliveroo (OTC:DROOF) couriers should be classed as employees, potentially giving them more benefits and overturning an earlier judgment in favour of the British food delivery company.
The judgment only applies to the 28 bicycle couriers who in 2018, together with unions, the Brussels Labour Audit Office and the Belgian National Employment Office, started a lawsuit against Deliveroo, but could inspire other Belgian couriers.
"The terms of the employment relationship established between Deliveroo and the couriers are incompatible with the qualification of an independent employment relationship and lead to the conclusion that this relationship must be considered as an employee relationship and therefore should be reclassified", the court said in its ruling.
In an emailed reaction, Deliveroo said it would appeal to the Belgian Court of Cassation, adding that it was disappointed by the decision "because it does not take into account how our model works".
"We provide flexible work and this is highly appreciated by the riders that work with our platform in Belgium."
The ruling, if upheld, suggests the couriers may be entitled to benefits such as a fixed salary, sick leave and paid vacation.
Earlier this month, European Union lawmakers provisionally agreed on a bill aimed at giving workers at online companies such as Deliveroo and Uber (NYSE:UBER) employee benefits, which if adopted would be a global first.