Thousands of food delivery workers across Australia are set to receive new workplace protections, including minimum hourly rates of pay, following a decision handed down by the Fair Work Commission. The new minimum standards order, issued by an expert panel of the industrial umpire on Tuesday, covers employee-like gig workers engaged by digital on-demand platforms to deliver food, drinks, or groceries. The conditions come into effect on Monday, August 17.
Landmark Order Sets Hourly Pay Floor
The rules were established following a joint application submitted in 2024 by the Transport Workers’ Union (TWU) alongside major platforms DoorDash and UberEats. Workplace Relations Minister Amanda Rishworth described the order as a milestone, stating that it represents a big step in delivering world-leading gig worker protections without forcing workers to trade off flexibility. TWU national secretary Michael Kaine called the standards world-leading
.
How the Minimum Pay and Insurance Rules Work
The interim minimum standard order creates an earnings floor calculated for engaged time,
which spans the period between accepting a delivery and completing it. While the system does not compensate workers for time spent waiting for a job, it does cover waiting time at a restaurant if the order has already been accepted. Minimum hourly pay rates vary based on the vehicle used:
- Pedal-powered bicycles or e-bikes: $31.30 an hour (Theconversation)
- Motorcycles: $31.80 an hour (Theconversation)
- Cars: $32.00 an hour (Theconversation)
Platforms are required to calculate total worker earnings over a 21-day period, topping up pay if the average falls below the earnings floor. These rates are scheduled to increase by 50 cents starting January 1, 2027.
The order also sets clear rules regarding insurance. Delivery workers remain responsible for maintaining third-party vehicle insurances, meaning platforms are not liable if a worker damages another vehicle in an accident. Conversely, digital platforms must organize and pay for personal accident insurance to provide a reasonable minimum level of cover. Additional provisions include clearer dispute resolution procedures and the right to unpaid time off.
Industry Background and Context
Food delivery apps originally launched in Australia in the mid-2010s, with companies like Deliveroo and Menulog eventually exiting the market, leaving Uber Eats and DoorDash as dominant players. Prior to these changes, gig workers operated as independent contractors and lacked standard employee protections, frequently facing low and variable incomes, safety risks, and limited recourse for workplace problems. Data from the Transport Workers’ Union indicates that at least 23 gig workers died on the job in Australia since 2017.
When federal workplace reforms empowering the industrial umpire to set minimum standards were introduced in 2023, platforms and business groups resisted the changes. Uber predicted catastrophic job losses and meal delivery cost increases of up to 85%, while DoorDash claimed prices could triple, and the Australian Chamber of Commerce and Industry argued the policy moved the country backward. However, those prior warnings gave way to collaborative engagement between the TWU, Uber Eats, and DoorDash as the framework was finalized.
