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Posted: 2018-09-11 14:05:00

Foodora will continue to fight an alleged unfair dismissal case after Australian tax authorities classified the company's food delivery riders as employees instead of independent contractors.

The Australian Taxation Office and Revenue NSW started chasing Foodora for unpaid tax and superannuation before the food delivery company went into voluntary administration last month.

Revenue NSW has notified Foodora's administrator the gig company owes $558,075 in payroll tax because it classified Foodora cyclists as employees and not independent contractors as claimed by the company.

Foodora will continue to fight an alleged unfair dismissal case against the Australian Taxation Office and Revenue NSW.

Foodora will continue to fight an alleged unfair dismissal case against the Australian Taxation Office and Revenue NSW.

Photo: Jason South

Foodora went into voluntary administration on August 17 in a move it said at the time would put litigation against it on hold. The Fair Work Ombudsman last week dropped its case alleging Foodora engaged in sham contracting classifying workers as contractors instead of employees in response to the company's collapse.

The Transport Workers Union, which is representing former Foodora rider Josh Klooger, said the company had informed the union it would continue fighting the case in the Fair Work Commission on Thursday.

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