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Australia’s Fair Work Commission (FWC) has approved new minimum standards for food and grocery delivery workers, giving gig economy workers higher pay and greater protection against workplace injuries.
Under the new rules, delivery workers will receive a minimum rate of A$31.30 ($22.11) per hour, significantly above Australia’s national minimum wage of A$26.44. The standards take effect on August 17 and are expected to benefit around 250,000 workers across the country.
The minimum hourly rate will apply to “engaged” time, meaning the period starting when a worker accepts a delivery and ending when the order is completed. This measure is designed to provide gig workers with a more predictable minimum level of earnings while maintaining the flexibility associated with app-based work.
The FWC order also requires delivery platforms to provide a reasonable minimum level of personal accident insurance for workers while they are performing deliveries. However, workers will remain responsible for maintaining third-party insurance for vehicles used on the job.
The decision marks a major development for Australia’s gig economy, where workers have traditionally been classified as independent contractors and excluded from many standard employee protections.
The Transport Workers Union described the decision as a landmark moment for gig workers. Uber Eats and DoorDash also welcomed the new standards, saying stronger worker protections can coexist with the flexibility valued by delivery workers.
The reforms build on legislation passed by Australia’s parliament in 2023 and 2024 under the Labor government. Those laws expanded gig workers’ rights to negotiate minimum pay and working conditions and gave the Fair Work Commission authority to establish standards covering compensation and insurance.
The Australian decision follows a June ruling by the International Labour Organization adopting its first binding employment standards for gig workers, potentially strengthening protections for pay, safety and social benefits globally once governments ratify the standards.
