Australia has introduced new minimum pay standards for food delivery workers, guaranteeing gig economy drivers at least A$31.30 ($20) per hour in what has been described as a world-first move to protect gig workers.
The Fair Work Commission approved the new standards for workers delivering food, drinks, and groceries through digital platforms, including Uber Eats and DoorDash.
The rules will come into effect on August 17 and will ensure workers receive a minimum hourly rate even while waiting for orders. Previously, delivery workers largely depended on payments for individual deliveries and were not necessarily compensated for waiting time between orders.
Minimum rates will initially range from A$31.30 to A$32 per hour, depending on the type of vehicle used. The rates will increase by a further 50 cents from January 1, 2027.
The standards were jointly proposed by the Transport Workers’ Union, Uber Eats, and DoorDash following years of negotiations over working conditions in Australia’s gig economy.
The agreement is expected to apply across the industry, covering other platforms involved in on-demand food, drink, and grocery deliveries as well.
Under the new system, workers will have a guaranteed minimum rate while retaining the flexibility associated with gig work.
Delivery platforms will also be required to arrange and pay for personal accident insurance that provides a reasonable minimum level of coverage for workers injured while working.
However, drivers will remain responsible for maintaining third-party vehicle insurance. Platforms will not be responsible for damage caused to another vehicle in an accident involving a delivery worker.
The new standards will also introduce clearer dispute-resolution procedures and allow eligible workers to take unpaid time off.
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