Domino’s warns on impact of delivery driver court ruling

The largest operator of the Domino’s pizza chain in Ireland warned the Department of Enterprise that a court judgment making delivery drivers employees would seriously affect its ability to compete fairly in the takeaway food business.

Shorecal Ltd, which operates 22 Domino’s franchises in the Republic, said a Supreme Court ruling would apply only to them and not any of their competitors placing them at an “unfair commercial disadvantage”.

The company sought a meeting with junior minister Neale Richmond at the Department of Enterprise but was rebuffed by officials who said he was unavailable due to “a very heavy schedule”.

In a letter to the department, Shorecal’s chairman Charles Caldwell said the business ran 31 stores in Ireland, including nine in the North, and employed more than 400 people directly with another 545 drivers on self-employed contracts.

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Mr Caldwell wrote, “This does not account for the many additional local businesses and suppliers which the company works with indirectly.”

He said a Supreme Court judgment involving one of its subsidiaries had determined that drivers were not self-employed contractors and that Revenue considered they should be treated as direct employees.

“This [has been] a long-standing arrangement which our stores have consistently operated and is also the case for the wider food and delivery services sector, as well as many other significant sectors of the Irish economy, including online shopping,” said the letter.

Mr Caldwell said Shorecal had “significant concerns” about the judgment and its potential to affect only its business and not any of its competitors who all operate the same business model.

He wrote, “The current model we operate is an essential aspect of our business and not something we can change without affecting our ability to compete fairly in the market.”

Mr Caldwell said that while Shorecal would comply with the Supreme Court decision, they wanted to meet Minister Richmond to discuss its implications and how a “level playing field” would be created in the delivery sector.

The letter added, “In order to make sustainable commercial and planning decisions, Shorecal requires clarity on this issue urgently. A fair and equally competitive operating environment is essential in this regard.”

The Department of Enterprise had been contacted by communications firm Hume Brophy last summer on behalf of Shorecal, with the meeting request recorded in the Lobbying Register.

An email from Hume Brophy [now Penta] said, “We appreciate the minister’s busy schedule and can accommodate a meeting at short notice and via [virtual communication].”

However, the department responded saying, “Minister [Neale] Richmond is unavailable to meet owing to a very heavy schedule”.

Asked about the letter, a statement from Shorecal said that engagement with Revenue on foot of the judgment continued and that no further comment was possible at this time.