Switzerland’s largest food‑delivery operator, Just Eat, is reshaping its Swiss operations by reclassifying couriers as self‑employed contractors and simultaneously planning to eliminate several hundred jobs, a development that has triggered a heated debate over minimum‑wage compliance and workers’ rights.
Self‑employment model under scrutiny
According to a report by the Tages‑Anzeiger, the company is compelling riders to operate as independent freelancers, a status that deprives them of the social protections and wage guarantees afforded to employees. Couriers have voiced concern that the new arrangement makes it impossible to earn the legal minimum wage, which, although not nationwide, applies in cantons such as Geneva and Zurich where many deliveries occur. One courier, speaking on condition of anonymity, told the newspaper:
“Ich komme so nicht auf den Mindestlohn.”The statement, translated as “I can’t make the minimum wage this way,” underscores the financial strain anticipated by workers forced into the gig‑economy model.
Job cuts announced amid restructuring
The The Local Switzerland reported that Just Eat intends to cut “hundreds of jobs” in the country as part of a broader cost‑reduction strategy. The exact figure was not disclosed, and the outlet noted a discrepancy in the numbers cited by industry insiders, with some estimating the reductions to be closer to 300 positions while others suggest a figure nearer to 500. The layoffs are slated to affect both full‑time staff and those in support roles, compounding concerns about job security in a sector already facing intense competition from rivals such as Uber Eats and local startups.
Legal and political reaction
Swiss labour unions and several cantonal governments have responded sharply to Just Eat’s plan. Union representatives argue that the reclassification violates the principle of “fair work” embedded in Switzerland’s social market economy, and they have called for government intervention to ensure that couriers receive at least the statutory minimum wage where it applies. A spokesperson for the Swiss Federal Department of Economic Affairs highlighted that while the country does not have a universal minimum wage, any employment arrangement must respect existing cantonal wage floors and social security contributions.
Just Eat has defended its approach, stating that the shift to self‑employment is intended to provide riders with greater flexibility and the opportunity to manage their own schedules. The company also emphasized that it will continue to offer “access to insurance options and support tools” for independent contractors, though critics argue these measures fall short of employee‑level benefits.
The controversy arrives at a time when Switzerland’s labour market is under close observation from both domestic policymakers and the European Union, which monitors the treatment of gig‑economy workers across member states and neighboring economies. Analysts suggest that the outcome of this dispute could set a precedent for how platform‑based companies structure their workforces in a country known for its strong collective bargaining traditions.
As the dispute unfolds, couriers, union leaders, and government officials are expected to convene in upcoming hearings to examine the legality of the self‑employment model and the scale of the announced job cuts. The situation highlights the broader tension between the rapid growth of digital platform services and the established Swiss framework for worker protection and wage regulation.
