It’s possible that in the not-too-distant future, we’ll have to go get our own meals. The Saeima is preparing to incorporate a series of amendments into the new immigration law and other regulatory acts that will significantly restrict food delivery platforms’ ability to employ third-country citizens as food couriers, Latvian Television reported on 23rd March.
On Monday, 23rd March, the Saeima’s parliamentary investigative commission, which is examining shortcomings in the immigration sector, summoned the management of the companies “Bolt” and “Wolt” for questioning. Lawmakers had received reports that on these companies’ platforms, courier partners from third countries are hiding behind other people’s identities, that individuals without legal grounds to reside or work in Latvia were actually working, that working hours were not being recorded, and that there were issues with compliance with the Food and Veterinary Service (PVD) requirements.
“Essentially, Bolt and Wolt facilitate violations of employment restrictions or regulations for immigrants. Various legal requirements are being circumvented, including through the use of the services you provide,” said Jānis Dombrava (National Alliance), chairman of the parliamentary investigation committee.
At the committee meeting, however, representatives of both companies attempted to refute the accusations directed at them. They claimed to have implemented a series of requirements for their partner couriers and to monitor their compliance.
“Our partner couriers are screened to ensure they have a residence permit with no restrictions on employment. So we’re not talking here about undergraduate students working 20 hours a week. We, of course, also verify identity documents. All our partner couriers must also undergo PVD registration,” explained Jānis Rimicāns, head of “Bolt Food” in Latvia.
“I want to emphasise right away that courier partners are not Wolt employees. They collaborate with the platform on the basis of independent contracts. Most of them, about 90%, work with Wolt as self-employed individuals,” added Wolt representative Mindaugas Liutvinskas.
These explanations did not convince the lawmakers, however, as it is precisely this self-employed status that allows platforms to circumvent a number of requirements regarding the employment of foreign citizens.
“It is clear that there is this grey area where these companies operate. On the one hand, the requirements are met by establishing this cooperation format with self-employed individuals; on the other hand, we understand that this constitutes employment,” said Dombrava.
A series of amendments is being prepared in the Saeima to close this loophole. Among them is a ban on third-country citizens being self-employed in Latvia.
Businesses’ concerns about the impact on the market were not taken into account, at least by the parliamentary investigation commission.
“We heard threats that the number of couriers delivering food would decrease. But I think it’s healthier for each of us to go pick up our own meal rather than call a foreigner to bring it to us,” said Dombrava.
The PVD has registered approximately 8,000 food delivery couriers. Both “Bolt” and “Wolt” each have about 3,000 couriers, roughly half of whom are Latvian citizens.
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