Australia has introduced new minimum pay standards for food delivery workers, guaranteeing gig economy drivers at least A$31.30 (around $20) per hour in what is being 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.
New Rules Take Effect August 17
The rules come into force on August 17 and will guarantee workers a minimum hourly rate even during time spent waiting for orders. Previously, delivery workers largely depended on per-delivery payments and had no guaranteed compensation for the time spent waiting between orders.
Minimum rates will initially range from A$31.30 to A$32 per hour depending on the type of vehicle used, with a further 50-cent increase scheduled from January 1, 2027.
Standards Emerged From Union-Platform Negotiations
The new pay 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 industry-wide, extending to other platforms involved in on-demand food, drink, and grocery delivery as well.
Under the new system, workers will retain the flexibility associated with gig work while gaining a guaranteed minimum pay floor for the first time.
Insurance and Dispute Resolution Also Addressed
Delivery platforms will now be required to arrange and pay for personal accident insurance, offering a reasonable minimum level of coverage for workers injured on the job.
Drivers, however, will remain responsible for maintaining their own third-party vehicle insurance, and platforms won’t be liable for damage caused to another vehicle in an accident involving a delivery worker.
The new standards also introduce clearer dispute-resolution procedures and allow eligible workers to take unpaid time off.
