Sweden: The Administrative Court of Appeal Ruled on a Platform Company´s Responsibility for Couriers´ Work Environment
Author: Karolina Sundqvist
The Administrative Court of Appeal in Gothenburg has recently ruled that a platform company should be categorised as the employer of its couriers, i.e., those delivering food via the company’s digital platform. This decision overturns an earlier ruling by the Administrative Court, which had held that the couriers were not employees due to the limited control the company exercised over their working conditions.
The Court of Appeal conducted an overall assessment of the relationship between the platform company and its couriers, focusing on whether the company exerted sufficient control to establish an employment relationship. The court determined that the platform company exercised significant management and oversight over its couriers. This finding was based on several factors, including the company´s provision of training on delivery tasks, its use of algorithms to allocate deliveries, and its specification of the time, location, and routes for deliveries. Additionally, the platform company offered assistance in resolving issues arising during deliveries. These considerations led the court to conclude that the company exercised “direction and control” over the couriers, thereby fulfilling the criteria for being categorised as an employer.
Nevertheless, the court acknowledged factors that could support the classification of couriers as independent contractors. For instance, couriers supplied their own equipment, including vehicles, and bore the associated expenses without reimbursement. Additionally, couriers were permitted to work for other companies, including direct competitors, and were free to wear competitors´ branding. These elements suggested a degree of independence typical of independent contractors.
The court also noted that the couriers´ ability to accept or decline delivery assignments held limited relevance in determining their employment status, as this flexibility is common in short-term employment agreements. Furthermore, while couriers could designate substitutes to perform deliveries, such substitutions required the platform company´s approval. These factors, although indicative of some independence, were insufficient to override the significant control exerted by the company over the couriers´ work.
Ultimately, the court concluded that the couriers should be regarded as employees of the platform company due to the company´s ability to oversee and direct their work. Consequently, the platform company is now obliged to adhere to the requirements set forth by the Work Environment Authority. These obligations include evaluating and managing work environment risks and implementing measures to ensure the safety of couriers while performing their duties. Notably, the court clarified that the company is not responsible for couriers employed by third-party entities that provide services to the platform.
Key Action Points for Human Resources and In-House Counsel
Platform companies must be aware of the employer obligations and work environment responsibilities that may arise when engaging platform workers.
