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Foodora condemned for closing Australian operation during back pay dispute

05 August 2018

Unions NSW is demanding the federal government set up a compensation fund for Foodora riders with the food delivery service announcing it will wrap up its Australian operations.

Foodora Australia country manager Jeroen Willems said that "we wish to express our gratitude to all of our customers, contractors and employees for their dedication to Foodora Australia, and for allowing us to be a part of their everyday".

The union said in March it was taking two cases to the Fair Work Commission, Australia's national workplace relations tribunal, alleging Foodora unfairly sacked two delivery riders.

In the company's statement, Foodora added that it will ensure that its employees will "find suitable alternative roles, as well as support partners and contractors during this transition".

"There has been broad community and academic debate about the status of "models" using smartphone-driven technology as a means for deploying a workforce that delivers food to consumers from restaurants and fast food outlets", Fair Work Ombudsman Natalie James said at the time.

According to the ABC, it appears Foodora has not informed all of its delivery riders about the decision. These rights can not be accessed by independent contractors under the Fair Work Act.

And because it allegedly paid the workers contractor rates rather than employee rates, it had underpaid their minimum law wage rates and other payments.

Foodora has objected to Mr Klooger's claim against unfair dismissal on the basis that he is an independent contractor. "It's like a dream come true".

A foodora spokesperson told CMO the company will continue to manage legal proceedings locally in Australia and will continue to treat them with the utmost importance.

Icce Mejia is also working for Foodora. He told the ABC that the company had so many problems and that its excuse that it was "shifting its focus to other markets" sounded like an excuse.

Foodora in June said it could not comment because the matter was before the courts.

Foodora condemned for closing Australian operation during back pay dispute