Australia sets ‘world-leading’ minimum pay and insurance rules for gig delivery workers
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Uber Eats and DoorDash said the new rules would show that stronger worker protections and the flexibility valued by gig workers can go hand in hand.
PHOTO: REUTERS
- Australia's Fair Work Commission has set a minimum hourly pay of $28.30 for gig delivery workers, above the national minimum wage of A$23.90, effective from Aug 17.
- The new rules require companies to provide personal accident insurance coverage for gig workers during their engaged work time.
- Unions and companies like Uber Eats see this as a landmark step improving gig workers' rights while maintaining job flexibility in Australia's gig economy.
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SYDNEY – Australia’s industrial umpire has approved new minimum standards for 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 (S$28.30) an hour, above the minimum wage of A$26.44, 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 Aug 11.
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 Aug 17 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 job 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 have 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 FWC to set standards for pay and insurance. REUTERS
