Canberra: Delivery drivers across Australia will receive a minimum hourly rate of $31.30 under new workplace standards approved by the Fair Work Commission, in a landmark decision that will also provide workers with insurance protection for injuries sustained on the job.
The Fair Work Commission (FWC), Australia’s industrial umpire, issued the new minimum standards order on August 11 covering gig workers who provide on-demand delivery of food, drinks and groceries, as well as the digital platforms that engage them.
The new conditions will come into effect on August 17 and are expected to apply across the sector, including platforms beyond those directly involved in the application. The Transport Workers’ Union (TWU) jointly applied for the new protections with UberEats and DoorDash in 2024 following years of negotiations. The commission subsequently considered submissions from gig workers, businesses and other interested parties, including Amazon and Australia Post.
Under the new standards, delivery workers will receive minimum hourly rates ranging from $31.30 to $32, depending on the type of vehicle they use. The rates are intended to provide workers with a basic income even during periods when they are waiting for restaurants or customers rather than actively making deliveries.
The minimum rates will increase by 50 cents an hour from January 1, 2027. The agreement also introduces new protections around workplace injuries. Delivery platforms will be required to arrange and pay for personal accident insurance providing a reasonable minimum level of cover for workers.
Workers, however, will remain responsible for maintaining third-party insurance for the vehicles they use. This means platforms will generally not be responsible for damage caused to another vehicle if a delivery driver is involved in an accident. The new standards also include provisions intended to improve dispute resolution and give workers access to unpaid time off.
The TWU, UberEats and DoorDash said the agreement would create an industry-wide safety net for hundreds of thousands of workers while maintaining the flexibility associated with gig work. TWU National Secretary Michael Kaine described the protections as ‘world-leading’.
The standards follow workplace reforms introduced by the Australian government in 2023, which gave the Fair Work Commission greater powers to establish minimum standards for certain gig workers.
Workplace Relations Minister Amanda Rishworth described the decision as a milestone, saying delivery workers should not have to sacrifice flexibility in exchange for fairer workplace protections.
The agreement is expected to affect a wide range of on-demand delivery platforms that provide food, drink and grocery delivery services, potentially setting a significant precedent for the treatment of gig workers in Australia and internationally.
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