Australia’s gig economy is set for a major shake-up, with food, drink and grocery delivery workers to receive a legally enforceable minimum pay rate and workplace injury protection under new standards approved by the Fair Work Commission (FWC).
The landmark standards, described by the Transport Workers’ Union (TWU) as “world-leading”, will take effect from 17 August 2026 and apply across the on-demand delivery industry.
Under the new system, delivery workers will receive minimum safety-net rates ranging from $31.30 to $32 an hour, depending on the type of vehicle they use. The rates apply to “engaged time” while workers are performing delivery-related tasks.
The standards were developed following an application jointly pursued by the TWU and major delivery platforms Uber Eats and DoorDash, after negotiations over protections for gig workers.
The new framework is expected to apply beyond the two major platforms to other digital platforms providing on-demand food, drink and grocery delivery.
A key change is the introduction of minimum personal accident insurance. Delivery platforms will be required to arrange and pay for insurance providing a reasonable minimum level of cover for workers injured while performing their work.
Workers, however, will remain responsible for maintaining third-party insurance for vehicles used for deliveries. This means platforms will generally not be responsible for damage a worker causes to another vehicle in an accident.
The standards also introduce greater transparency around delivery offers, dispute-resolution processes and worker representation, while seeking to preserve the flexibility associated with app-based work.
TWU national secretary Michael Kaine described the decision as a major step forward for workers in the gig economy.
The FWC’s decision follows years of debate over whether gig workers should continue to be treated primarily as independent contractors or receive protections similar to employees.
The new framework uses the legal category of “employee-like” workers, created under Australia’s recent workplace relations reforms. The FWC has powers to establish minimum standards covering matters including payment, working time, insurance, consultation and representation.
The decision could have implications beyond Australia as governments and regulators in other countries grapple with how to regulate rapidly expanding gig-economy platforms while retaining flexibility for workers.
For Australian delivery workers, the changes represent the introduction of an enforceable income floor in an industry where earnings have traditionally varied according to individual deliveries, demand and platform payment structures.
The FWC’s decision follows extensive consultation with gig workers, unions, digital platforms and other stakeholders, including Amazon and Australia Post.
The new standards are expected to take effect nationally from 17 August, providing what the TWU, Uber Eats and DoorDash described as an industry-wide safety net while retaining the flexibility that has made app-based delivery work attractive to many workers.
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