Australia Introduces 'World-Leading' Minimum Pay and Insurance Standards for Gig Delivery Workers
Australia's workplace regulator has approved sweeping new minimum standards for food and grocery delivery workers, mandating hourly pay above the national minimum wage along with mandatory injury insurance coverage.
The Fair Work Commission (FWC) issued the order late Tuesday, setting a minimum rate of A$31.30 ($22.11) per hour for gig workers — well above Australia's standard minimum wage of A$26.44. Workers will remain responsible for their own third-party vehicle insurance, but companies must now provide "a reasonable minimum level" of personal accident coverage, though the order stops short of specifying exact coverage thresholds.
Set to take effect August 17, the new rules are expected to benefit roughly 250,000 workers nationwide. Under the framework, pay applies specifically to "engaged" time — the period spanning from job acceptance to delivery completion.
The move follows a landmark decision by the International Labour Organization in June, which adopted the first binding international employment standards for gig workers, potentially extending protections around pay, safety, and social benefits — pending ratification by individual governments.
The Transport Workers Union hailed the decision as a milestone. "Gig workers in Australia were left outside of our workplace systems for far too long," said TWU National Secretary Michael Kaine in a joint statement alongside Uber Eats and DoorDash. "From Monday, they will be entitled to an absolute world-leading set of standards that we will build on over time."
Both Uber Eats and DoorDash — the latter increasingly expanding beyond restaurant delivery — said the reforms demonstrate that stronger worker protections and gig-economy flexibility aren't mutually exclusive.
The standards cap years of advocacy from unions and workers, who have long criticized the classification of gig workers as independent contractors — a status that has historically excluded them from standard workplace protections. The groundwork was laid by Australia's centre-left Labor government, which passed legislation in 2023 and 2024 granting gig workers expanded rights to negotiate pay and conditions, and empowering the FWC to establish binding standards.