Former employees will have higher priority in the administrative process than drivers, who are contractors and considered “unsecured creditors”.
Deliveroo Australia staff received an initial compensation payment just before operations shut down, while all riders who made a delivery in the last three months have received two weeks worth of pay.
As part of the voluntary administration process, Deliveroo will put forward a Deed of Company Arrangement (DOCA), a proposal that lays out how the company’s affairs and assets will be dealt with. KordaMentha will assess the DOCA and provide a report containing a recommendation on whether to accept the DOCA ahead of the second creditors’ report in December.
In a document to creditors seen by this masthead, Deliveroo revealed further details about how it intended to compensate employees, riders, and restaurant partners.
Former employees are eligible to receive a second severance package that includes a statutory redundancy payment, even if they were employed for less than a year at Deliveroo, as well as a prorated company bonus.
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Under the DOCA, riders are eligible to receive a second payment that is equivalent to two weeks’ pay, while restaurant partners that partnered exclusively with Deliveroo are also up for compensation.
However, riders and restaurant partners will not receive this second tranche of payments if more than 50 per cent of creditors vote to reject Deliveroo’s proposal at the second meeting in December.
“If the DOCA is not approved, riders [and restaurant partners] will not receive this payment,” states Deliveroo’s letter to creditors signed by Deliveroo chief people officer Caleb Merkl.
Meanwhile, customers who have unused credit or an unredeemed gift card will also receive a full refund, pending the DOCA’s approval.
McManus urged creditors to approve the proposal.
“If the DOCA passes, this will mean that employees, who will soon receive your first payment, will get your second payment more quickly at the end of December. For riders, this will mean that you will receive the second half of the four-week compensation package being offered to you,” McManus said.
Deliveroo has exited Australia, leaving Uber, DoorDash and Menulog.Credit:Steven Siewert
“For our eligible restaurant and grocery partners, and for eligible customers, this will mean that you will receive the compensation that is owed to you.”
Deliveroo’s collapse comes after a cohort of failed rapid grocery delivery start-ups, including Send, Voly, and Quicko. DoorDash recently announced its own grocery delivery service, DashMart, in Sydney, Melbourne, and Brisbane.
