Business

The Brazilian logistics unicorn Loggi must formalize its work relation with couriers

A judicial decision defined that the company must also pay BRL 30 million in fines

Loggi must formalize its work relation with couriers
Delivery apps also faced fines related to labor relations with its couriers. Photo: Loggi
  • São Paulo’s Labor Court decided that Loggi must start providing formal work contracts to the couriers that have been working for the company since October
  • The judicial decision also established over BRL 30 million in fines regarding the current number of the unregulated couriers working for the company
  • The decision cames on the opposite way of a previous trial that has gave Uber the benefit of not considering drivers as formal workers on the Brazilian state of Minas Gerais

And here’s another round of the controversial battle about the work relation between the current informal workers and new tech companies. The Brazilian logistics unicorn Loggi was penalized in BRL 30 million in fines after that a court decision established the formalization of couriers as workers, according to Contxto

READ ALSO:2017 to 2019 – A chronology of Latin American Unicorns

Regarding the decision, the company must start providing official work contracts and hiring the couriers that have been working for the company since October, besides start collecting governmental mandatory taxes of all its new courier employees. However, Loggi already stated that will try to appeal the decision, especially because of the fine established by São Paulo’s Labor Court. 

This decision suggests that similar sentences could also be applied to companies such as iFood, Uber Eats, and Rappi, for instance, and took the market by surprise since recently Brazil’s Superior Court of Justice (STJ) decided to benefit Uber in a similar trial establishing that drivers must not be considered as formal workers in the ride-haling company. 

In general lines, Loggi’s case opened a new room for legal interpretation of this kind of claim in the country and since this matter keeps dividing opinions worldwide, we can already expect to hear a lot about it in Brazilian cases in 2020.