The Fair Work Commission (FWC) of Australia has approved minimum wage standards for food and consumer goods delivery riders, setting an average pay rate between 31.30 and 32 Australian dollars—approximately 732 to 748 Thai baht—per hour. This rate exceeds the country’s minimum wage. Additionally, platforms are required to provide personal accident insurance for workers. The new rules take effect from 17 August 2024.
Australia’s Fair Work Commission (FWC) has issued a new minimum standard for workers delivering food, beverages, and consumer goods via digital platforms. The standard mandates minimum compensation based on actual work time and ensures workers are covered by accident insurance during their work.
This order becomes effective on 17 August 2024 and is expected to impact around 250,000 workers across Australia. It represents a key initiative to enhance rights for gig economy workers who traditionally lack the protections and benefits afforded to regular employees.
Under the new standard, delivery workers using bicycles or electric bikes will receive a minimum pay of 31.30 Australian dollars, about 732 baht per hour. Motorcycle riders will earn at least 31.80 Australian dollars (approximately 743 baht per hour), and car drivers will receive no less than 32 Australian dollars, roughly 748 baht per hour. These rates are all above Australia’s national minimum wage of 26.44 Australian dollars, or about 618 baht per hour.
The new standard requires workers to be compensated for "minimum pay for the time worked," calculated from when they accept a job to the completion of the delivery—not just for the transit time to deliver the goods.
Digital platforms must calculate worker earnings for each payment cycle, which may cover up to 21 days. If a worker’s earnings fall below the stipulated minimum pay level, the platform must pay the difference to meet the minimum standard.
The measures also grant workers the right to take unpaid breaks from accepting jobs as they choose, without losing their working status with the platform.
Furthermore, platforms must establish channels for feedback and complaints, allowing workers to report issues or inquire about work conditions. If disputes cannot be resolved between the worker and platform, workers may bring the case before the Fair Work Commission for adjudication.
Regarding insurance, the new standard requires workers to maintain third-party liability insurance for the vehicles used in deliveries and to inform insurers that the vehicles are used for delivery purposes.
At the same time, food delivery platforms must bear the cost of providing and maintaining personal accident insurance for workers considered "de facto employees" to cover injuries sustained during work. While the order does not specify a minimum coverage amount, it mandates adequate protection.
The Transport Workers Union of Australia (TWU), representing gig economy workers, called the measures a major achievement after years of campaigning for delivery worker rights. TWU filed a petition with the FWC to establish minimum standards in 2024, collaborating with platforms like Uber Eats and DoorDash.
Michael Kaine, National Secretary of the TWU, described the new standard as a "world-leading benchmark." He noted that Australia’s gig workers have long been excluded from labor protections, and this change sets a new foundation for future improvements.
Amanda Rishworth, Australia’s Minister for Employment and Workplace Relations, said the new standard marks an important step toward stronger protections for workers. She emphasized that food delivery workers should not have to choose between "flexibility at work" and "rights and fairness."
Both Uber Eats and DoorDash expressed support for the new standard, stating that stronger worker protections can coexist with the flexibility that platform workers value.
Ed Kitchen, Managing Director of Uber Eats Australia and New Zealand, said he is proud to have contributed to developing the framework and views this as a pivotal moment for food delivery workers, who play a vital role in Australia’s economy and daily life for millions.
Although many delivery workers have been classified as independent contractors and thus lacked many labor protections, the Australian Labor government passed laws in 2023 and 2024 to enhance their rights, including negotiating pay and work conditions and empowering the Fair Work Commission to set wage and insurance standards.
Previously, some platform companies warned that reforms to gig worker labor laws could severely impact employment and sharply increase delivery costs. However, these companies later engaged in negotiations and helped develop the new standards together with unions.
These measures reflect a broader trend as many countries update labor laws to align with the growth of the platform economy, where workers enjoy flexibility in work hours and modes but face income uncertainty, safety issues, and fewer benefits compared to traditional employees.
Australia’s order follows the International Labour Organization’s (ILO) June 2024 resolution endorsing the first binding labor standards for platform workers, covering wages, safety, and social benefits. However, these standards require ratification by member governments before becoming enforceable nationally.
SourceSBS Australia/Reuters