Key facts
- Gig economy delivery drivers in Australia will be paid a minimum of $31.30 per hour.
- Drivers will receive personal accident insurance paid for by delivery platforms.
- The Fair Work Commission approved the new minimum standards order.
- The conditions take effect on August 17.
- The Transport Workers' Union, DoorDash, and UberEats jointly applied for the protections.
Delivery drivers in Australia will soon be guaranteed a minimum hourly wage of $31.30 and receive injury insurance, following an approval by the Fair Work Commission (FWC). The FWC issued a new minimum standards order for gig workers engaged in on-demand delivery of food, drinks, or groceries, and the digital platforms they work for.
The Transport Workers’ Union (TWU), in conjunction with major platforms DoorDash and UberEats, applied for these protections after years of negotiations. The FWC greenlit the conditions after considering public submissions, including those from gig workers and companies like Amazon and Auspost. The new standards are set to take effect on August 17.
Under the agreement, delivery platforms will be responsible for organizing and funding personal accident insurance for their workers, though the exact level of cover is open to interpretation. However, drivers will remain responsible for maintaining third-party vehicle insurance, meaning platforms will not be liable for damage to other vehicles in case of an accident.
The new conditions, initially proposed by the TWU, DoorDash, and UberEats, are expected to apply broadly to any on-demand platforms selling food, drinks, or groceries, and their ad hoc delivery workers. The minimum hourly rates, designed to compensate drivers even during waiting times, will range from $31.30 to $32 depending on the vehicle type and will increase by 50 cents from January 1, 2027.
These standards also aim to provide clearer dispute resolution processes and grant workers the right to unpaid time off. The joint application to the FWC was prompted by workplace reforms introduced in 2032, which empowered the industrial umpire to establish minimum standards for gig workers. Workplace relations minister Amanda Rishworth hailed the FWC order as a significant step in delivering world-leading gig worker protections, ensuring flexibility is not traded off against fairer conditions.