Food and grocery delivery drivers in Australia will receive a guaranteed minimum hourly rate of at least $31.30 and access to workplace injury insurance under new protections approved by the country’s industrial umpire.
The Fair Work Commission (FWC) announced the minimum standards order on Tuesday, introducing new conditions for workers who deliver food, beverages and groceries through digital platforms.
The measures, which will take effect on August 17, follow a joint application submitted in 2024 by the Transport Workers’ Union (TWU), DoorDash and Uber Eats after several years of negotiations.
The FWC considered submissions from delivery workers, companies and other interested parties, including Amazon and Australia Post, before approving the new standards.
The agreement is expected to cover workers classified as “employee-like”, a description reportedly accepted as part of the negotiations between the union and delivery platforms.
In a joint statement, the TWU, Uber Eats and DoorDash said the measures would create an “industry-wide safety net for hundreds of thousands of [workers] while preserving the flexibility that sits at the heart of on-demand work.”
TWU national secretary Michael Kaine described the new protections as “world-leading”.
Under the arrangement, delivery workers will remain responsible for maintaining third-party insurance for vehicles used during deliveries. This means platforms will generally not be responsible for damage caused to another vehicle in an accident.
However, delivery companies will be required to arrange and fund personal accident insurance offering a “reasonable minimum level of cover” for their workers.
The new rules are expected to apply across the on-demand delivery sector, including platforms that provide food, drink and grocery delivery services, regardless of whether they were involved in the original application.
A key part of the order is the introduction of minimum hourly rates designed to ensure workers are paid for time spent waiting for orders, including at restaurants.
Depending on the type of vehicle used, the initial minimum rates will range from $31.30 to $32 per hour. The rates will increase by 50 cents from January 1, 2027.
The standards also include provisions covering dispute resolution and unpaid time off, among other workplace conditions.
The new framework follows workplace reforms introduced by the Albanese government in 2023, which gave the FWC powers to establish minimum standards for gig-economy workers.
Workplace Relations Minister Amanda Rishworth described the decision as a “milestone”.
“This [FWC] order is a big step in delivering Australia’s world-leading gig worker protections and means food delivery workers don’t have to trade off flexibility for fairer protections,” she said.
