Minimum pay rates for delivery workers take effect

The Fair Work Commission’s first-ever interim Minimum Standards Order will see food delivery gig workers receive a minimum of $31 to $32, depending on their mode of transport.

The legally enforceable order is anticipated to function as a safety net for delivery workers while preserving flexibility.

Commencing on 17 August, the new standards cover employee-like or gig workers engaged by a digital labour platform, such as Uber Eats, where the work involves collecting and delivering consumables to customers.

Requirements for the platform operators include making a top-up payment if a worker’s earnings for a period of up to 21 days sits below the applicable minimum earnings floor, which is calculated by multiplying total hours worked by the minimum hour rate of $31.30 for workers on foot or by bike (electric or pedal), $31.50 for those on motorcycles or combustion scooters, and $32 for those in a car or van.

The Fair Work Commission noted that, like the minimum wage, the rates are subject to future review and adjustment.

The order dictates maintenance, record-keeping and fine coverage obligations for platforms, and the condition that workers are consulted for any future change. In addition, formal appeal pathways will be established for drivers unfairly deactivated from apps.

In a joint statement with DoorDash and Uber Eats, the Transport Workers’ Union (TWU) called the change a historic milestone and “landmark moment for the Australian gig economy”.

According to TWU national secretary Michael Kaine, “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,” Kaine said.

Similarly, Ed Kitchen, managing director of Uber Eats ANZ, said: “This is a modern reform for a modern way of work that proves fair standards and flexibility can co-exist.”

DoorDash’s head of public policy APAC, central Asia and the Middle East, Maggie Lloyd, said: “This sets a new benchmark for modern workplace regulation and demonstrates what can be achieved when industry, unions and government work together.”

The Housing Industry Association (HIA) has expressed concerns that the framework could affect independent contracting arrangements.

HIA compliance and workplace relations executive director Stuart Collins said that “HIA supports appropriate protections where workers have little bargaining power and a digital platform”, but clarified a “legal and practical distinction” between these food delivery workers and contractors in residential construction – which, he said, relies on contractors negotiating their own rates and conditions.

“The whole-of-relationship test already provides a framework for determining whether someone is genuinely operating as an independent contractor. We should be very careful about creating new regulatory concepts that cut across those established arrangements,” he said.

“The Fair Work Commission’s order has been developed to deal with a particular issue, in a particular part of the economy. That is where it should remain.”

Fair Work Ombudsman Anna Booth urged workers and businesses to review the changes carefully, adding that “on-demand delivery workers can also seek information from their platform operator, and their union if they are a member”.

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