The Fair Work Commission has unveiled a groundbreaking minimum standards order targeting the landscape of gig economy workers, specifically focusing on those engaged in on-demand food, beverage, and grocery deliveries. This initiative marks a significant step toward addressing long-standing issues within this sector.
Released this Tuesday, these newly established standards dictate that on-demand delivery personnel must receive a base pay ranging from $31.30 to $32 per hour. The variation in rates depends on the type of vehicle utilized for delivery tasks. Moreover, the order mandates that delivery platforms must provide insurance coverage for their workers, safeguarding them against injuries incurred while on duty.
Representing the interests of Australian gig workers, the Transport Workers’ Union (TWU) hailed these reforms as a long-awaited victory. The union, together with delivery giants Uber Eats and DoorDash, initiated the plea for these minimum standards back in 2024, aiming to create a fairer and more secure work environment for all involved.
In an official statement to SBS News, TWU’s national secretary, Michael Kaine, expressed pride in the new regulations, labeling them as “world-leading.” He highlighted the significant impact these changes are poised to have not only on local workers but also on global perceptions of working conditions in the gig economy.
“The world is witnessing a transformation as Australian gig workers gain unprecedented rights and safeguards,” Kaine remarked. “These advancements come after years of relentless efforts to foster a more balanced and equitable industry, promising to reshape the lives of countless workers.”
Employment and Workplace Relations Minister Amanda Rishworth also believes the order is a “big step” in providing more robust worker protections.
She said it means “food and delivery workers don’t have to trade off flexibility for fairer protections”.
The new standards are set to start on Monday 17 August.
Who is covered by the order?
The TWU said “hundreds of thousands” of delivery workers in Australia will be impacted by the new orders.
They specifically apply to employee-like workers who are engaged through digital on-demand delivery platforms — such as Uber Eats and DoorDash — and mainly deliver consumables (food, beverages or liquor) or supermarket groceries.
These workers will be entitled to a guaranteed minimum hourly rate for their “engaged time” between accepting an order and completing the delivery. This is also called an “earnings floor”.
People operating bicycles or e-bikes will be paid $31.30 an hour. For motorbikes, this increases to $31.80 per hour, and workers driving cars will earn $32 per hour.
According to the interim order, platforms will calculate a worker’s total earnings over a period of up to 21 days. If a worker “has been paid less than the earnings floor in an earnings period, the digital labour platform operator will pay a top-up amount to … make up the difference”, it said.
Right to unpaid time away
The standards also aim to provide a clearer dispute resolution process and workers the right to (unpaid) time away. Key provisions include:
- Platforms will establish a feedback forum to enable workers to raise questions or concerns about their work.
- If an issue is unable to be resolved between the worker and delivery platform, drivers can refer the dispute to the Fair Work Commission.
- Delivery drivers can choose to take “time away” from work without pay.
- Time away is at the discretion of workers.
Maggie Lloyd, DoorDash’s head of public policy for the Asia-Pacific, Central Asia and the Middle East, described these changes as a “defining moment” for Australia’s on-demand economy.
“These new standards prove that strong worker protections and the flexibility that delivery workers value can go hand in hand,” Lloyd said in a statement.
Insurance changes
Under the standards, delivery drivers will be responsible for taking out and maintaining compulsory third-party insurance for any vehicles used to provide services. They must also inform their insurer that the vehicle will be used for delivery driving.
Delivery platforms must, at their own expense, take out and maintain a personal accident insurance policy to cover employee-like workers.
Previously, not all workers received these protections because they were considered independent contractors.
In 2023, Uber warned the government that reforms to the gig economy would lead to “catastrophic” job losses. That same year, DoorDash also claimed that food delivery prices could more than triple under a worst-case scenario analysis.
Both companies have since walked back these comments and engaged with the TWU on the new standards.
Ed Kitchen, managing director of Uber Eats in Australia and New Zealand, said he is “proud” to have worked on the industry-first framework.
“This is a great moment for gig workers who play such a critical role in Australia’s economy and in the lives of millions of Aussies who rely on food delivery every day.”