Australia Has Introduced Minimum Pay Standards for Delivery Couriers
Australia has implemented its first minimum standards for gig economy workers who deliver food and groceries. According to ABC News Australia, the new rules could affect approximately 250,000 delivery drivers and provide for a minimum wage and accident insurance coverage.
Workers on platforms such as Uber Eats and DoorDash will earn at least 31.30 Australian dollars per hour of active time. This refers to the period from accepting an order to completing the delivery. The rate depends on the type of vehicle: for e-bikes, it is 31.30 Australian dollars per hour; for motorcycles, 31.80 Australian dollars; and for cars, 32 Australian dollars.
The platforms must calculate a courier’s total earnings over a 21-day period. If the average pay for active time is below the established minimum, the company must make up the difference. At the same time, time spent waiting for a new order will not be paid, but time spent waiting at a restaurant after accepting an order will be paid.
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Couriers will continue to pay for their own vehicle insurance. At the same time, platforms must offer a reasonable minimum level of personal accident insurance coverage. Companies are also required to consult with employees and notify them of significant changes, including withdrawal from the market.
The new standards provide for a forum for employee grievances, a dispute resolution procedure, and the right to unpaid time away from work. Previously, most platform workers were considered independent contractors and therefore did not have access to many of the protections afforded to salaried employees.
In 2024, Anthony Albanese’s government passed the “Closing Loopholes” reform, which granted the Fair Work Commission the authority to set legally binding minimum standards for contractors with a status similar to that of employees. The current decision is interim and may be subject to change in the future.
