Your takeaway is about to get more expensive – here’s why

A new EU directive to be implemented by this December will change how delivery workers are classified and the price of your order will likely rise.

By December 2nd this year, Ireland must implement the EU's Platform Workers Directive into law.

This does not apply to all gig economy workers but does cover workers who use food delivery apps.

There are two business models a restaurant can use to deliver meals to its customers.

Restaurants can use a platform app such as Deliveroo, Just Eat or Uber Eats, or from a delivery service owned and run directly by the restaurant themselves.

 Currently, all of the costs of deliveries are left to the driver.

The restaurants had less obligations in relation to the drivers like not paying social insurance, sick or holiday pay.

Once the drivers are considered to be employees, costs for these expenses will likely force prices up on the app or for delivery.

In October of 2023 the Irish Supreme Court found that delivery drivers for Karshan Midlands Ltd Trading As Dominos Pizza (Domino’s) are employees and not independent contractors, as the company asserted.

After this, Revenue gave businesses a disclosure opportunity to reclassify people from contractors to employees.

According to Revenue's statistics, 286 employers reclassify more than 6,600 employees with total tax adjustments of more than €26.7 million.