FOOD delivery riders for the app Foodpanda scored a victory after the National Labor Relations Commission (NLRC) in Central Visayas ruled that they are employees of the platform.
According to Tepi Claros, legal counsel for the 18 rider complainants, the NLRC’s Sept. 17, 2024 ruling confirms an employer-employee relationship between the riders and the company, directly challenging Foodpanda’s classification of its workers as independent contractors.
“What riders really hope for is to receive fair compensation. They can only achieve this fair compensation if they assert their rights in the employer-employee relationship,” Claros said in a press conference on Friday, Oct. 11.
Foodpanda and Delivery Hero Logistics Philippines, Inc. were ordered to pay the P7.4 million for the unjust reduction in delivery fees.
The commission also mandated the reinstatement of the compensation scheme used from 2018 to 2020, which provided a base fee of P55, plus incentives of P20, P10, or P5 based on batching.
In 2021, the riders’ base fee was reduced from P55 to P25 without any valid explanation from the company.
“Since our compensation has decreased, it feels like we’ve lost our motivation. Still, we will fight for our rights, and we will continue to pursue our case, even if it goes all the way to the Supreme Court,” said Abraham Monticalbo, Jr., one of the riders.
Claros said the NLRC ruling could set a precedent for the entire rider community.
Claros said the case has several key points, including that shift scheduling is not optional for the riders and that the company unilaterally updates acceptance rates and special hours.
Furthermore, the delivery guidelines and strict cash remittance rules imposed by Foodpanda dictate how riders perform their duties.
In addition to establishing control, the court found that the riders are economically dependent on Foodpanda, emphasizing their essential role in the company’s operations, said Claros.
“With no ability to negotiate or alter their fees, riders are more like employees receiving a standard wage rate than independent contractors,” reads a portion of the ruling.
“This lack of negotiation power leaves the riders with limited options; they are essentially forced to accept whatever pay the company dictates,” it added.
In response to the ruling, Riders-Sentro urged Foodpanda to respect the decision and avoid filing an appeal.
The union also invited the company to enter into discussions for a collective bargaining agreement.
Despite the legal victory, the riders’ current payment structure—consisting of a P55 base fee per booking plus P15 per kilometer—remains unchanged, according to Claros. / CAV