The Italian Government has recently passed a new piece of legislation, Legislative Decree n. 101/2019, which will improve riders’ working conditions, give them more guarantees and move towards approximating their status to that of employees.
The change follows Italian tribunal decisions, which, although falling short of giving riders full employment status, started to state that riders are entitled to some of the guarantees directly attributable to delivery men working in the same industry but employed under the Italian collective bargaining agreement (CBA) for the logistic sector.
How riders are qualified
Riders are defined as workers engaged in delivering goods on behalf of others, in the urban context and with the aid of two-wheeled vehicles or similar, and includes those working through digital platforms.
Specific rules set out for riders
With regard to remuneration, two rules apply:
- The number of deliveries made can be an element to determine riders’ remuneration, however it cannot be the only element nor the prevalent one.
- Riders can receive hourly remuneration if they accept at least one call for each hour worked. Therefore, stand-by periods will not be remunerated, unless specifically provided by collective bargaining.
With regard to injuries while working, riders are entitled to the following:
- INAIL (Istituto Nazionale Per L’assicurazione Contro Gli Infortuni Sul Lavoro) coverage,
- the legislation on health and safety at work (Legislative Decree n. 81/2008).
Conditions for the application of employment rules
Riders will be covered by employment legislation if the activity performed is:
- exclusively personal, meaning that the activity is carried out personally without any support from other subjects or other factors used in the performance;
- ongoing, which means that the activity is performed in a precise timeframe in order to achieve a real utility;
- organized so that the company engaging the rider determines his or her working time and place of work.
If all the above-mentioned conditions are satisfied, then employment rules will apply to riders.
When the new regulation will go into effect
The new legislation will take effect 6 months after the conversion law goes into effect, turning Legislative Decree n. 101/2019 into law.
Companies using riders must consider the new salary structure introduced by the decree and where applicable negotiate with unions on applying those rules. In particular, the fact that the number of deliveries made can be an element to determine riders’ remuneration, but not the only element nor the prevalent one, means that companies will need to set up some form of hourly salary structure—albeit one which can be influenced by the number of deliveries, perhaps, via a further bonus or incentive.
However, companies that use riders should carefully look at the conversion law, because the Parliament may amend this decree when turning it into law.
Written by Sofia Bargellini of SZA Studio Legale and Roger James of Ogletree Deakins
© 2019 SZA Studio Legale and Ogletree, Deakins, Nash, Smoak and Stewart, P.C.