The recent Deliveroo decision is a reminder to employers that comprehensive, written agreements assist significantly in the proper characterisation of worker relationships.

In a recent decision that particularly affects workers in the gig economy, the Fair Work Commission (FWC) has found that Deliveroo rider, Mr Diego Franco (Mr Franco), was an independent contractor, and not an employee.

Adopting the recent decisions in Personnel Contracting[1] and Jamsek,[2] the Full Bench of the FWC overturned Commissioner Cambridge’s decision that Mr Franco was an employee[3], and reiterated that an employment relationship that is regulated by a written, comprehensive agreement, is characterised solely by reference to the rights and obligations in it.

Key facts

Mr Franco worked as delivery rider for Deliveroo. He also worked for Portier Pacific Pty Ltd (Uber Eats) and Door Dash.

His engagement with Deliveroo was under a “Supplier Agreement” signed on 18 April 2017. He signed a replacement Supplier Agreement on 2 October 2018, and the latest Supplier Agreement was signed on 9 December 2019 (2019 Agreement).

In April 2020, Mr Franco was identified as a contractor driver with delayed delivery times.

On 23 April 2020, Mr Franco received an email from Deliveroo advising that he was in breach of the 2019 Supplier Agreement because he failed to deliver orders within a reasonable time, and that the 2019 Agreement would be terminated. His access to the Deliveroo Rider App was disabled on 30...

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