Former employees will have priority in the administrative process over drivers who are contractors and are considered “unsecured creditors.”
Deliveroo Australia staff received an initial severance payment just before the shutdown, while all riders who have delivered in the past three months have received two weeks’ pay.
As part of the voluntary administration process, Deliveroo will submit a document of company arrangement (DOCA), a proposal that sets out how the company’s affairs and assets will be managed. KordaMentha will assess the DOCA and submit a report containing a recommendation on the acceptance of the DOCA before the second creditors’ report in December.
In a document to creditors seen by This Masthead, Deliveroo revealed more details about how it will compensate staff, riders and restaurant partners.
Former employees are eligible for a second severance package, which includes statutory redundancy pay, even if they have been with Deliveroo for less than a year, as well as a company-matched bonus.
Under the DOCA, riders are eligible for a second payment, equivalent to two weeks’ wages, while restaurant partners who work exclusively with Deliveroo are also eligible for compensation.
However, Riders and Restaurant Partners will not receive this second payment installment if more than 50 percent of creditors vote to reject Deliveroo’s proposal at a second meeting in December.
If the DOCA is not approved, the riders [and restaurant partners] He will not receive this payment.” Deliveroo’s letter to creditors, signed by Caleb Merkel, Deliveroo’s chief people officer, said.
Meanwhile, customers with unused credits or unredeemed gift cards will also receive a full refund pending DOCA approval.
McManus urged creditors to approve the proposal.
“If the DOCA passes, it means that employees who will soon receive your first payment will receive your second payment as soon as the end of December. For riders, this means that you will receive the second half of your four-week severance package. You will receive what is offered to you.
For our eligible restaurant and food partners, and for eligible customers, this means you will receive the compensation you are owed.
Deliveroo’s collapse follows a string of failed grocery delivery startups, including Send, Voly, and Quicko. DoorDash recently announced its grocery delivery service, DashMart, in Sydney, Melbourne and Brisbane.