Authority: Labour Court of Buenos Aires
Parties: Repartos Ya S.A. / Deliverers
Subject: Qualification of the legal relationship between Repartos Ya S.A. and its deliverers. Lawfulness of the fine imposed on Repartos Ya S.A for violating labour regulations.
Summary of facts: Repartos Ya S.A. is a technology company which develops apps and website through which local businesses can offer their products and services to customers. Reportas Ya also facilitates the delivery of the products. Repartos Ya S.A. receives a fine for violating labour regulations and claims the fine lacks legal basis because no employment relationship exists between Repartos Ya and the deliverers. Repartos Ya does acknowledge provision of services since the deliverers have committed themselves to deliver products through a trade agreement.
Legal question: Does an employment relationship exist between Reportas Ya and their deliverers?
Considerations: Article 375 of the Spanish Code of Civil Procedure prescribes that the person alleged to be an employer must proof that another legal relationship exists instead of an employment relationship. If the alleged employer is not able offer enough counter-evidence, the work will be presumed to be performed based on an employment relationship.
Repartos Ya failed to disprove the presumption of employment. In addition, there are circumstances that indicate the existence of an employment relationship. For instance, Repartos Ya instructs the deliverers how to perform their work and determines the method and amount of payment. Since an employment relationship exists between Reportas Ya and its deliverers, the judge rules that there is also a valid legal basis for the fine.
Ruling: The deliverers of Repartos Ya S.A. work based on an employment relationship and the imposed fine has a valid legal basis.