Deliveroo Australia Pty Ltd v Diego Franco

Deliveroo Australia Pty Ltd, a company involved in the online food delivery industry, appealed a decision made by Commissioner Cambridge of the Fair Work Commission on 18 May 2021 in Sydney. The case, U2020/7066, involved Diego Franco, a former food delivery rider who claimed unfair dismissal against his employer, Deliveroo. The central dispute was whether Franco's dismissal was unjust and, if so, whether Deliveroo was liable for compensation.

The key legal issues before the court were whether Franco's dismissal was harsh, unjust, or unreasonable under section 387 of the Fair Work Act 2009 and whether Deliveroo had a valid reason to terminate his employment. Deliveroo argued that Franco's dismissal was justified due to breaches of contract, including failure to comply with safety protocols and misrepresentation regarding his status as an independent contractor. Franco contended that his dismissal was unfair and that he should be considered an employee rather than a contractor, thereby entitling him to protections under employment law.

In reaching its decision, the court examined the nature of the relationship between Deliveroo and Franco. It considered the control Deliveroo exerted over Franco's work, the terms of their agreement, and the economic reality of their arrangement. The court found that Franco was indeed an employee, not an independent contractor, due to the significant control Deliveroo had over his work and the dependency Franco had on the platform for his income. Consequently, the court ruled that Franco's dismissal was unjust, as Deliveroo had not provided a valid reason for termination. Deliveroo was ordered to compensate Franco for the unfair dismissal.