Food delivery firms under scrutiny as new Spain law kicks in

Associated Press

MADRID (AP) — A new law requiring food delivery companies in Spain to hire delivery riders and drivers as employees rather than freelance contractors has gone into effect. Spain’s Trade Union Confederation said the so-called Riders Law that entered into force on Thursday would “put an end to the labor fraud that workers in this sector have suffered for too long.” But it said the labor ministry and inspectors should ensure compliance through monitoring, evaluation and reporting. Legislation approved in May also requires app-based food delivery businesses to hand over information about how algorithms and artificial intelligence systems function in assigning jobs and assessing performance. Companies say the law threatens a 700-million-euro ($851 million) industry in Spain.