Delivery drivers to be paid minimum $31.30 an hour across Australia in ‘world-leading’ decision

Delivery drivers in Australia will be paid a minimum of $31.30 per hour starting 17 August, according to a decision by the Fair Work Commission. The ruling applies to all gig workers engaged in on-demand delivery of food, drinks, or groceries, and covers the platforms that employ them. The new standards, described as “world-leading” by the Transport Workers’ Union, aim to improve working conditions and offer greater protection for workers in the sector. The decision was reached after extensive negotiations involving the Transport Workers’ Union, along with major platforms DoorDash and UberEats. These groups had jointly submitted proposals to the FWC in early 2024, following the introduction of workplace reforms by the Albanese government in 2023. Those reforms expanded the powers of the industrial umpire to establish minimum standards for gig workers. The FWC considered input from a wide range of stakeholders, including gig workers themselves, as well as companies such as Amazon and Auspost. The new rules require delivery platforms to arrange and fund personal accident insurance for their workers, providing a “reasonable minimum level of cover.” However, the specifics of what constitutes adequate coverage remain subject to interpretation. Meanwhile, delivery workers will be responsible for maintaining third-party insurance on the vehicles they use, meaning they will bear responsibility for damages caused during deliveries. This arrangement aims to balance the need for financial security with the operational realities of the gig economy. Under the new standards, delivery workers will be guaranteed a base hourly wage ranging from $31.30 to $32, depending on the type of vehicle used, such as a bicycle versus a car. The minimum pay rates are designed to ensure workers are compensated even during periods of downtime, such as when they are waiting for a restaurant to prepare an order. The initial rates will rise by 50 cents on 1 January 2027, reflecting ongoing efforts to improve compensation over time. In addition to pay and insurance provisions, the new standards include measures aimed at improving clarity around dispute resolution processes and granting workers the right to unpaid time off. These elements are part of broader efforts to create a more structured and predictable environment for gig workers, while still allowing for the flexibility that defines the sector. The agreement marks a significant shift in how gig workers are treated under Australian labor laws. It comes after years of advocacy by the Transport Workers’ Union and growing pressure from both workers and policymakers to address long-standing concerns about fairness and job security. The involvement of major platforms such as DoorDash and UberEats in shaping these standards suggests a willingness to collaborate on solutions that benefit all parties. Workplace Relations Minister Amanda Rishworth praised the outcome, calling it a “milestone” in the effort to provide better protections for gig workers. She emphasized that the new standards allow workers to maintain the flexibility of on-demand jobs while ensuring they receive fair treatment. The FWC’s decision is expected to influence similar discussions in other countries, potentially setting a global benchmark for gig worker protections.