The Fair Work Commission issued a new minimum standards order affecting delivery drivers across Australia who perform on-demand food, drink, and grocery deliveries. The order, which takes effect from 17 August, establishes protections for hundreds of thousands of gig workers employed through digital platforms.
The Transport Workers’ Union jointly applied with major platforms DoorDash and UberEats for the new standards in 2024, following years of negotiations. The commission accepted public submissions from various stakeholders, including gig workers, Amazon, and Australia Post, before approving the conditions. According to union leadership, the agreement represents a “world-leading” development in worker protections.
Under the new standards, delivery workers will receive minimum hourly rates ranging from $31.30 to $32 depending on the class of vehicle used, such as bicycles or cars. These rates are designed to ensure compensation even during periods of inactivity, such as waiting at restaurants. The minimum rates will increase by 50 cents starting 1 January 2027. Additionally, delivery platforms must organize and fund personal accident insurance providing reasonable minimum coverage for workers, while workers themselves maintain responsibility for third-party vehicle insurance.
The standards address multiple workplace issues beyond compensation, including dispute resolution procedures and workers’ rights to unpaid time off. The new conditions will apply to any on-demand delivery platforms in the food, drinks, and groceries sector, not solely the platforms that led the application.
Workplace Relations Minister Amanda Rishworth characterized the commission’s order as a significant milestone in establishing what she described as Australia’s world-leading gig worker protections. The agreement was enabled by workplace reforms introduced in 2023 that granted the industrial umpire authority to set minimum standards for gig workers.
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