Taiwan court rejects delivery workers’ bid to be recognized as Foodpanda employees

The Taipei District Court has ruled against a labor union seeking employee status for three Foodpanda couriers whose contracts the platform ended in 2022.

The Taipei City Delivery Industry Union argued that the couriers were workers in practice, even though they had signed contractor agreements. It said Foodpanda controlled them through platform rules, order dispatching, ratings and algorithmic management. The union also argued that couriers had to follow prescribed pickup and delivery procedures and therefore should receive protection under Taiwan’s Labor Standards Act.

Foodpanda rejected that position. The company said couriers could decide when to log on, how long to work, whether to take breaks and whether to accept orders. The platform could not force them to work during busy periods, it argued, and couriers could provide services for competing platforms. They received payment per completed order rather than a fixed salary.

The court found that the contracts set no fixed working hours or locations. Couriers could select their operating areas, delivery routes and pace, and could pause or log off at any time without limits on the number or duration of breaks. The evidence did not show that couriers faced punishment for failing to appear during alleged scheduled periods.

The court also distinguished logging on from clocking in at a conventional workplace. Being online only indicated that a courier was available to receive orders, while the length of time online had no direct link to pay. Navigation routes served only as guidance, and refusing an order did not bring a penalty. Rules on insulated bags, food hygiene, personal-data protection and campus deliveries were intended to meet legal and food-safety requirements, rather than to exercise an employer’s supervisory authority.

The judges further said Foodpanda had no promotion, demotion or personnel appraisal system. Customer ratings affected only eligibility for additional incentives, and the couriers did not form part of the company’s organizational structure. The court therefore classified the relationship as contracting, not employment. Because either side could end the agreement, Foodpanda’s termination took effect, and the union’s claims for employment recognition, unpaid wages and retirement contributions failed. The case remains appealable.