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Australia sets 'world-leading' minimum pay and insurance rules for gig delivery workers
The new rules set a minimum A$31.30 hourly rate and require companies to provide injury insurance, affecting about 250,000 workers.
On Tuesday, Australia's Fair Work Commission approved new minimum pay and injury insurance standards for food and grocery delivery workers, mandating hourly rates above the national minimum wage.
Legislation passed by the Labor government in 2023 and 2024 empowered the FWC to reform conditions for gig workers previously classified as "independent contractors" without standard workplace protections.
Beginning August 17, workers will receive at least A$31.30 an hour for "engaged" time, while companies must provide "a reasonable minimum level of cover" for accident insurance affecting 250,000 workers.
The Transport Workers Union called the order "a landmark moment for the Australian gig economy," while Uber Eats and DoorDash noted stronger protections and worker flexibility can coexist.
Globally, these standards follow the International Labour Organization's June decision to adopt a treaty for gig worker conditions, though those international rules still require government ratification.
Australia has announced significant labor protection standards for food and consumer goods delivery workers via digital platforms, setting a maximum minimum wage of A$32 per hour, higher than the national minimum wage.