Australia sets minimum pay and protections for gig delivery workers

Australia has introduced its first minimum standards for gig economy workers, a move expected to significantly impact approximately 250,000 food and grocery delivery drivers. The reforms, which came into effect today, aim to provide greater stability and security for workers in the rapidly growing gig sector.

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In those moments you ask yourself why you're doing this, it's not the best feeling.

Gig worker Alexi Edwards, who works about 40 hours a week, shared her anxieties about fluctuating pay, which has sometimes dropped as low as $15 an hour. "In those moments you ask yourself why you're doing this, it's not the best feeling," she told ABC News. She hopes the new standards will offer a more predictable income.

The new regulations, empowered by the Fair Work Commission, establish an earnings floor for "employee-like" contractors. Food and grocery delivery drivers will now receive at least $31.30 per hour for engaged time – the period between accepting and completing a delivery. This rate varies slightly by vehicle type, with cars earning $32 per hour. Platforms must ensure workers are paid this minimum, even if their calculated earnings fall short over a 21-day period.

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It's history in the making really, not just in Australia, but right around the world.

Michael Kaine, national secretary of the Transport Workers' Union (TWU), described the changes as "history in the making," noting they are the result of a decade-long effort. "When the gig economy came into Australia in about 2012 and it engaged workers as independent contractors, it pushed them outside of the protections that have been built up for years," he said. Beyond pay, the new standards also mandate that platforms offer a reasonable minimum level of personal accident cover, although workers remain responsible for their own vehicle insurance. Platforms must also consult and notify workers about significant operational changes.

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When the gig economy came into Australia in about 2012 and it engaged workers as independent contractors, it pushed them outside of the protections that have been built up for years.