Diego Franco v Deliveroo Australia Pty Ltd

In the case of Diego Franco v Deliveroo Australia Pty Ltd, the Fair Work Commission was tasked with determining the nature of the relationship between the parties and whether the dismissal of Mr Franco was unfair. Deliveroo, an online food delivery service, argued that Mr Franco was an independent contractor, not an employee, while Mr Franco contended that he was an employee and that his dismissal was unfair. The Commission was required to decide if Mr Franco was indeed an employee, whether Deliveroo had a valid reason to dismiss him, and if the dismissal process was fair and reasonable.

The Commission examined the nature of the contractual relationship, focusing on the extent of control Deliveroo exercised over Mr Franco’s work. It found that Deliveroo dictated when, where, and how Mr Franco performed his tasks, which pointed to an employment relationship rather than an independent contractor arrangement. The Commission further determined that Deliveroo did not have a valid reason to dismiss Mr Franco, as the alleged misconduct was not substantiated. Additionally, the dismissal process was deemed to lack procedural fairness, as Mr Franco was not given an opportunity to respond to the allegations against him.

Given these findings, the Commission concluded that Mr Franco's dismissal was harsh, unjust, and unreasonable. It ordered his reinstatement to his former position with Deliveroo and directed the company to compensate him for lost earnings and costs incurred during the proceedings. The decision underscores the importance of accurately classifying workers and adhering to procedural fairness in dismissals to ensure compliance with employment laws.