From Monday, food delivery workers will get minimum hourly pay. Here’s why it matters

From next Monday, August 17, food delivery workers across Australia will receive a new minimum hourly rate of pay, thanks to a groundbreaking minimum standards order issued by the Fair Work Commission. This is the first order of its kind, setting a benchmark for similar applications regarding rideshare and parcel delivery workers. The order was reached after almost two years of negotiations between the Transport Workers’ Union and major platforms Uber Eats and DoorDash.

The new order creates an "earnings floor" for food delivery workers, which means they will be entitled to a minimum hourly rate for their "engaged time" – the period between accepting a delivery and completing it. The rates vary depending on the type of delivery vehicle: $31.30 per hour for pedal-powered bicycles or e-bikes, $31.80 per hour for motorcycles, and $32 per hour for cars.

Platforms will need to ensure workers' total earnings over a 21-day period meet this minimum standard, topping up their earnings if necessary.

While workers won't be compensated for waiting for a job, the new order includes the time spent waiting for an order at a restaurant, as long as they have already accepted it. Insurance coverage for delivery workers has also been clarified, with platforms now required to offer a "reasonable minimum level" of personal accident cover at their own expense.

This change comes after long-standing criticisms of gig work, including low and variable income, safety risks, and limited opportunities to resolve workplace issues. Since 2017, there have been at least 23 fatalities among gig workers in Australia. The reforms, supported by the Albanese government and the Greens, aim to turn the "cliff" of limited protections into a "ramp" for gig workers.