Deliveroo has reached a settlement with 50 riders who had brought employment rights claims against the company.
The delivery company has agreed the settlement without admitting liability before the claim reached an employment tribunal.
The agreement has no impact on the self-employed status of Deliveroo’s workers.
A spokesperson for Deliveroo said: “Deliveroo is pleased to have reached a settlement, without admission of liability, on this claim.
“This settlement has no impact on Deliveroo riders or our model; it allows us to continue to focus on providing the well-paid, flexible work that riders value. Courts have carefully considered Deliveroo’s model and concluded that riders working with us are self-employed.
“Deliveroo was the first in the on-demand economy to offer riders access to free, accident insurance globally, but we want to do more. That’s why we have long called for an end to the trade off between flexibility and security that exists in employment law. We will continue to campaign for policy change to enable us to further improve our offer to riders.”
Annie Powell, a solicitor with Leigh Day, who represented the riders, said: “Deliveroo has paid out a material sum to settle these claims. In our view, this shows that Deliveroo knew that they were very likely to lose at the Employment Tribunal.”
The settlement will have no impact on a separate case brought by the the Independent Workers Union of Great Britain, challenging the self employed status of riders.
The union has won the right to appeal a decision by the Central Arbitration Committee, which found that the company’s riders could be classed as self-employed, with the case set to go before the High Court.