Tens of thousands of food delivery drivers and riders working for platforms such as Uber Eats and DoorDash could receive a 25% pay rise under proposed minimum standards issued by the Fair Work Commission, according to Yahoo Finance Australia.
The publication reported that the Commission has issued a notice of intent proposing a minimum hourly pay rate of at least A$31.30 for on-demand delivery workers, replacing the current estimated average earnings of around A$24 an hour.
If adopted, the new standards will take effect from 10 August and establish Australia's first minimum pay safety net for gig economy delivery workers.
New workplace protections
Under the proposed framework, workers would receive hourly rates ranging from A$31.30 to A$32 depending on their vehicle type, with rates set to increase by A$0.50 an hour next year.
The proposed minimum standards also include pay transparency measures, union representation rights and personal accident insurance coverage, extending workplace protections that have traditionally not been available to gig economy workers.
Historic reform
The Fair Work Commission's full bench, led by President Adam Hatcher, said the proposed order would establish, for the first time, a minimum standards safety net for workers in Australia's on-demand delivery sector.
The Commission said the changes were expected to "substantially improve the earnings" of a large number of employee-like workers, although it acknowledged the proposed rates did not fully account for workers' operating costs or reflect the minimum award paid to employees performing similar work.
Broad industry support
The proposal follows years of campaigning by the Transport Workers Union (TWU), which has advocated for gig economy workers to receive guaranteed hourly pay instead of being paid solely per delivery.
TWU National Secretary Michael Kaine described the proposal as a major milestone.
"Australians have come to rely on having food delivered to our doorstep from the magical click of a button, rain, hail or shine," Kaine said.
"But for too long, gig workers have languished outside our workplace protections with below minimum pay, no voice at work and no protections, under deadly pressure to rush to make ends meet and avoid deactivation. Since 2017, 25 gig workers have been killed on our roads."
Uber Eats Australia and New Zealand Managing Director Ed Kitchen said the notice of intent was "an important step towards minimum standards for tens of thousands of Australian platform workers".
DoorDash APAC Vice President Simon Rossi said, "This would be the first time under the Albanese Government's new workplace laws that drivers would access minimum standards that provide a safety net and stronger protections while maintaining the unique flexibility that platform work provides."
Employment and Workplace Relations Minister Amanda Rishworth described the proposal as a landmark outcome.
"This landmark ruling is thanks to the Albanese Government's Laws to introduce minimum standards for workers in the gig economy," she said.
Decision due in August
The proposed standards stem from a joint submission lodged by the TWU, Uber Eats and DoorDash after the Albanese Government introduced legislation enabling minimum standards for employee-like workers in the gig economy.
If confirmed, the Fair Work Commission's order will mark the first nationwide safety net for Australia's on-demand delivery workforce, introducing minimum pay and workplace protections while preserving the flexible work model that underpins platform-based employment.