Australia has implemented new regulations guaranteeing minimum pay rates for hundreds of thousands of on-demand delivery drivers, a move hailed as a significant reform for the gig economy.
Effective Monday, approximately 250,000 delivery workers for platforms including Uber Eats, DoorDash, and Menulog will be assured of minimum hourly earnings that exceed $31. The Transport Workers' Union has described these reforms as a "world-first" initiative aimed at preventing a "race to the bottom" in gig work.
The Fair Work Commission's first minimum standards order for on-demand delivery workers mandates that delivery platforms must supplement drivers' pay if their earnings fall below the prescribed rates. This order establishes an earnings floor for app-based delivery riders and drivers.
Under the new standards, bicycle, e-bike, and electric scooter riders are guaranteed at least $31.30 per hour of engaged time. This rate increases to $31.50 for motorcyclists and $32 for those using cars or vans. However, these minimum rates are applicable only during "engaged time," which refers to the period a worker is actively completing a delivery via an app, and not for time spent waiting for assignments.
This order represents the first employee-like worker minimum standards for on-demand delivery workers in Australia, addressing long-standing concerns about low pay, safety risks, and inadequate workplace protections within the gig economy. Fair Work Ombudsman Anna Booth advised both workers and businesses covered by the order to familiarize themselves with the new minimum standards, directing them to the Fair Work Ombudsman's online resources for information.
"With the new minimum standards order now in effect, on-demand delivery workers are entitled to minimum rates, to dispute resolution processes, have a right to unpaid time away, and more," Booth stated. "The first step to compliance with the standards is to educate yourself on these terms, whether you're a worker or business."
The new rules maintain the flexibility for workers to choose when they log on and accept jobs, and they can take unpaid time away from delivery apps at their discretion. The protections extend beyond wages to include provisions for insurance, vehicle repair and registration costs, record-keeping, the rights of workplace delegates, consultation obligations, and dispute resolution processes.
These reforms are considered the most substantial changes to Australia's gig economy since delivery apps gained widespread popularity during the COVID-19 pandemic. Delivery riders have long contended that they were often paid below minimum wage while personally covering expenses such as fuel, maintenance, and insurance. Drew, a food delivery delegate for platforms including Uber Eats and DoorDash since 2022, called the reforms a hard-won achievement after years of advocacy for stronger workplace protections.
"It's not just about the money, it's also about the conditions," Drew said. He noted that gig workers have actively pushed for minimum standards to counter issues like unfair account deactivations, constant surveillance, and psychosocial risks associated with the job. Michael Kaine, national secretary of the Transport Workers' Union, characterized the changes as a decade in the making, explaining that the gig economy's model of engaging workers as independent contractors since its introduction around 2012 had removed them from established protections.
Workers and businesses requiring clarification on the new standards are encouraged to seek advice from the Fair Work Ombudsman, their platform operator, or their union if they are a member.
Food delivery rider Steve Khouw, who rides his bike for deliveries in Sydney, highlighted the significance of these changes.
