Is The Business Model Doomed In Luxembourg?

The three directors of H.T. Layer Europe, responsible for the delivery platform, were fined EUR5,000 each. The cause is the use of delivery people without a business permit, considered illegal work.

The employment contracts of Wedely’s deliverers had already been in the sights of the Labor and Mines Inspectorate (ITM) for several years. They monitored the use of self-employed workers who could be used to circumvent the legislation that applies to employees, particularly in terms of working hours and social coverage. A practice considered unfair and therefore criticized by many competitors on the market.

The case finally ended up in court and the three directors of the company HT Layer Europe, in charge of the delivery platform, have just been sentenced to a fine of EUR5,000 each by the 7th correctional chamber of the court of the district of Luxembourg, which indicates a spokesperson for the judicial administration. The conviction stems from the fact that some independent delivery drivers did not have a business permit, which the company should have checked, the judgment says.

Now is the business model doomed in Luxembourg or do they still have a chance to make this work?

With some changes to their existing business model as well as opening-up to new monetization options can survive this PR disaster and raise out of it even stronger than before without having to fire one delivery guy!

Let’s talk about it – just get in touch!

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