The inspection penalizes the company with 38.1 million for failing to register more than 7,000 employees and having another 813 undocumented and demands another 19 million for unpaid contributions
New million-dollar sanction for Glovo adding to a long history plagued by lawsuits for circumventing the Spanish standard. The Labor and Social Security Inspectorate has fined the food delivery company 38.1 million euros for apprehending false self-employed persons and therefore not complying with the so-called equestrian law, but also for having undocumented workers. This was confirmed to this newspaper on Tuesday by sources from the Ministry of Labor.
Specifically, the inspectorate, very vigilant with this type of fraud, proposes a penalty to Glovo of 32.9 million euros for keeping 7,022 workers in Madrid without registering them with the social security, for which it also requires the certificate of liquidation due to the lack of a contribution from these employees for an amount of 19 million euros.
In addition, the company was fined another 5.2 million euros because, also in Madrid, it had 813 irregular employees, because they were foreigners without a work permit. This brings the sum of the sanctions and the settlements to 56.7 million euros. The total number of affected employees stands at 7,835.
With this new move, Glovo has already accumulated more than 205.3 million euros in fines in Spain for illegally employing 37,348 workers, posing as bogus self-employed and some without papers. The total amount of acts of violation is 125.3 million, to which must be added another 80 million in acts of settlement of unpaid contributions.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
