The Spanish on-demand errands app, Globo, was fined 79 million euros for violations of labor laws related to the employment classification of couriers. The huge sanction comes after a finding that the startup had 10,614 workers falsely classified as self-employed in Barcelona and Valencia, but the Ministry of Labor found that the couriers were in a working relationship with the company.
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Labor Minister Yolanda Diaz accused Globo of violating workers’ rights and disrupting the department’s supervision. Disruption of supervision constituted a small part of the reasons for the fine, with the bulk (€63.2 million) relating to misclassified couriers who worked in Barcelona (where more than 8,300 workers were found to have been wrongly classified as self-employed) and a smaller part (€15.7 million) relating to the 2,300 misclassified riders In the wrong way in Valencia.