A procedural delay has prevented the Generalitat from collecting €500,000 in fines from Cabify and three VTC firms. The Catalan court ruled the sanctions expired after exceeding the legal deadline. The case highlights ongoing scrutiny of labor practices in Spain’s transport sector.
Cabify and three associated VTC service providers have escaped paying nearly half a million euros in fines after the Generalitat de Catalunya failed to meet 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. This procedural lapse has effectively nullified the penalties, despite the court confirming the underlying labor violations.
The case originated from 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 noted that Cabify’s detailed contracts and operational control over drivers established an indirect management relationship.
The court’s decision emphasized that Cabify not only provided the digital platforms—Cabify for customers and Cabify Drivers for drivers—but also organized driver schedules, set quality standards, issued instructions, and exercised disciplinary authority. These factors, along with mandatory training and the ability to impose sanctions, reinforced the finding of illegal worker transfer. However, the Generalitat’s failure to process the sanctions within the statutory timeframe, even after accounting for 78 days of administrative suspension due to the COVID-19 pandemic, led to the expiration of the case.
The Generalitat argued that the countdown should start from the issuance or notification of the infraction report, but the court rejected this, siding with the companies’ interpretation that the period began with the initial inspection. As a result, the administration was also ordered to pay €2,500 in legal costs. The Generalitat still has the option to appeal to the Supreme Court, but for now, the fines remain unenforceable.
This 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 drawn legal challenges, with courts often examining the balance between operational flexibility and workers’ rights. In a related context, Spanish authorities have also taken action against other forms of regulatory evasion, such as the 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, has faced ongoing legal and regulatory challenges over employment status, licensing, and competition with traditional taxi operators. The outcome of this case underscores the importance of strict adherence to administrative procedures, as even proven violations can go unpunished if authorities miss critical deadlines. The situation also highlights the evolving legal landscape for digital platforms and their partners, with future appeals and legislative changes likely to shape the sector’s regulatory framework.
