Business

Bolsonaro sanctions law that requires insurance for delivery app couriers; Brazil's leading app, iFood supports the measure

Companies must also offer financial assistance for 15 days, extendable for two more periods of 15 days, to couriers infected by the novel coronavirus

Foto: REUTERS/Rahel Patrasso
Ler em português

President Jair Bolsonaro on Wednesday sanctioned a bill that requires app companies to hire insurance to protect their couriers in case of accidents during the work period. iFood, the country’s leading delivery app, supported the measure, saying that it already offers the resource to its partner couriers, but defended the discussion around new labor legislation, which takes into account the work models introduced by the companies of the so-called new economy.

According to the text released by the General Secretariat of the Presidency of the Republic, insurance policies must cover personal accidents, permanent or temporary disability and death.

READ ALSO: Prosus: iFood’s delivery business is close to breakeven

In addition, companies must offer financial assistance for 15 days, extendable for two more periods of 15 days, to couriers infected by the novel coronavirus. Bolsonaro vetoed, however, a section of the bill that required companies to provide food to deliverers through the worker’s feeding programs (PAT), claiming that the measure would lead to revenue waiver without compensatory measures.

LABS contacted iFood and Rappi to find out what the companies thought of the new law. Rappi said it would not comment. iFood, in its turn, said that the assurances required by the new law are already part of the benefits package offered by the company to its partner couriers. However, before listing the benefits of this package, the platform defended that it is necessary to promote a public debate on “the need for a regulation that supports new work models and that ensures professionals’ rights, such as access to social security.”

READ ALSO: Brazilian food tech’s behemoth iFood delivers 60 million monthly orders amid the pandemic

“It is important to recall that the context of the new economy assumes greater flexibility for couriers to work on different platforms and with their own work schedule, choosing the days and times they want to work. In this context, Law 14.297/2022 (former bill 1665/20) is an excellent first step. However, we understand that as important as the measures presented is the holding of a broad debate between civil society and the legislative, executive, and judiciary powers on new models of employment relationships present in the new economy”, said iFood, in a statement.

The platform informed that since 2019 it has already protected its carriers against personal accidents and that it was the first company in the sector to offer coverage against personal accidents. iFood also said that it offers, through a partnership with AVUS, access to a package of health services at more advantageous prices to partners registered on its platform. iFood also highlighted that, during the pandemic, it created two funds to support its ecosystem during the COVID-19 health crisis.

Get the best insights about Latin America market in your inbox