Australia Sets New Minimum Standards for Gig Workers in Food and Grocery Delivery
Fair Work Commission mandates hourly rates above national minimum wage and injury insurance
Quick Look
Australia's Fair Work Commission has set new standards for gig workers in food and grocery delivery, requiring hourly rates of at least AU$31.30 and injury insurance coverage, effective August 17, benefiting approximately 250,000 workers.
AI-generated summary
Why It Matters
Gig workers globally lack standard employment protections; Australia's laws from 2023 and 2024 aimed to address this.
Australia's industrial umpire has approved new minimum standards requiring food and grocery delivery workers to be paid hourly rates above the national minimum wage and covered by injury insurance while on the job.
Gig workers will be paid at least A$31.30 ($22.11; £16.35) an hour, above Australia's minimum wage of A$26.44 (£13.82), while remaining responsible for maintaining third-party insurance for vehicles used for deliveries, the Fair Work Commission (FWC) said in an order issued late on Tuesday.
Companies will be required to provide "a reasonable minimum level of cover" for personal accident insurance, although the order did not specify a minimum level of coverage. The order takes effect on 17 August and is expected to benefit about 250,000 workers.
Under the order, workers will be paid a minimum hourly rate for "engaged" time, covering the period between accepting a job and completing the delivery.
The order follows the International Labour Organization's decision in June to adopt the first binding employment standards for gig workers, potentially giving them rights around pay, safety and social benefits. Those standards still require ratification by governments.
The Transport Workers Union (TWU) called FWC's order "a landmark moment for the Australian gig economy."
"Gig workers in Australia were left outside of our workplace systems for far too long. From Monday, they will be entitled to an absolute world-leading set of standards that we will build on over time," TWU National Secretary Michael Kaine said in a joint statement with Uber Eats and DoorDash.
Uber Eats and DoorDash, which has been diversifying beyond restaurant deliveries, said the new rules would show that stronger worker protections and the flexibility valued by gig workers can go hand in hand.
Unions and workers have long pushed for reforms covering gig workers, who are typically classified as independent contractors rather than employees and therefore excluded from many workplace protections.
Australia's parliament passed laws in 2023 and 2024 under the centre-left Labor government that gave gig workers greater rights to negotiate minimum pay and conditions.
The laws empowered the Fair Work Commission to set standards for pay and insurance.
What to Watch
AI outlook — possibilities, not facts
Increased pressure on other gig economy companies to adopt similar standards globally.
Likely · Within months
Open Questions
- How will companies adapt to increased costs?
- Will other countries follow Australia's lead?
