Minimum Pay For Delivery Workers

Gig economy delivery workers will be covered by new minimum pay and working condition standards from 17 August, in a major change for app-based delivery services including Uber Eats and DoorDash.

The Fair Work Commission has made the Interim On-Demand Delivery Employee-like Worker Minimum Standards Order, the first minimum standards order issued by the Commission.

It will cover eligible independent contractors working through digital platforms to deliver food, drinks, alcohol and groceries to customers.

The legally enforceable order introduces minimum pay rates and standards covering vehicle repairs, registration and expenses, fines and insurance, record-keeping and unpaid time away.

Platforms covered by the order will also face requirements around consultation on significant changes, providing information to workers and establishing feedback forums. The order also includes workplace delegate rights and dispute resolution processes.

The workers covered by the changes will remain independent contractors rather than becoming employees.

The new system follows changes to federal workplace laws that gave the Fair Work Commission powers to establish minimum standards for certain “employee-like” workers in the gig economy.

Uber Eats and DoorDash were involved in developing proposed minimum standards through a joint submission with the Transport Workers’ Union.

Workers using vehicles with a carrying capacity of more than one tonne are not covered.

The Commission is separately considering minimum standards for employee-like workers and road transport contractors performing “last mile” delivery work.

The new on-demand delivery standards take effect across Australia on 17 August.