Cabify and three associated VTC service providers have avoided paying nearly half a million euros in fines after the Generalitat de Catalunya missed the required administrative deadlines. The Catalan High Court’s Social Chamber ruled that the sanctions, imposed for illegal transfer of workers, could not be enforced because the process exceeded the nine-month legal limit by 14 days. The procedural lapse nullified the penalties, even though the court confirmed the underlying labor violations.
The case began with a 2020 inspection at Barcelona Airport, where authorities investigated how Cabify coordinated with its VTC partners. Inspectors found that Maxi Mobility Spain (Cabify) and three subcontractors, JT Hiring, Proinvertia, and López Rubio, were involved in arrangements that amounted to illegal worker transfer. Cabify was fined €143,754 and €100,006, while JT Hiring faced penalties of €25,000 and €35,000, Proinvertia €100,006, and López Rubio another €143,754. Each company operated under its own collective agreement, but the court found that Cabify’s detailed contracts and operational control over drivers established an indirect management relationship.
The court noted that Cabify provided two digital platforms, Cabify for customers and Cabify Drivers for drivers. It organized driver schedules, set quality standards, issued instructions, and exercised disciplinary authority. These factors, along with mandatory training and the power to impose sanctions, reinforced the finding of illegal worker transfer. But, the Generalitat failed to process the sanctions within the statutory timeframe. Even after accounting for 78 days of administrative suspension due to the COVID-19 pandemic, the case had expired.
The Generalitat argued that the countdown should begin with the issuance or notification of the infraction report. The court rejected that position, agreeing with the companies that the period began with the initial inspection. The administration was also ordered to pay €2,500 in legal costs. The Generalitat may still appeal to the Supreme Court, but for now, the fines remain unenforceable.
The ruling comes amid broader scrutiny of labor practices in Spain’s transport and gig economy sectors. The use of subcontractors and digital platforms to manage drivers has repeatedly faced legal challenges, with courts weighing operational flexibility against workers’ rights. Spanish authorities have also acted against other forms of regulatory evasion, including a recent move to prosecute maritime drug traffickers under piracy laws, as reported in a previous case involving anti-drug prosecutors.
Spain’s VTC sector, which includes ride-hailing services like Cabify, continues to face legal and regulatory challenges over employment status and licensing, as well as competition with traditional taxi operators. The case shows how proven violations can go unpunished when authorities miss critical deadlines. The legal field for digital platforms and their partners continues to evolve, with future appeals and legislative changes likely to shape the sector’s regulatory structure.
