Australian Gig Delivery Drivers Get $22 Minimum Hourly Pay

Delivery drivers serving customers of apps such as UberEats in Australia will be paid a minimum rate of AUS$31.30 ($22.05) an hour, under a measure approved by the Fair Work Commission (FWC). The Guardian reports the landmark agreement could set a precedent in other countries.

The FWC, Australia’s industrial umpire, on August 11 issued a new minimum standards order for operators of the digital platforms who engage so-called gig workers to perform on-demand delivery of food, drinks or groceries. The new agreement, which is expected to apply to any on-demand delivery platforms, will take effect from August 17.

DoorDash and UberEats joined the Australian Transport Workers’ Union to apply for the new protections in 2024, after years of talks. But the deal falls short of allocating the status of employees to the drivers; an issue that haunts the gig industry. Instead, the union has agreed to call the workers “employee-like.” 

Further, they are responsible for maintaining third-party insurances on the vehicles they use for deliveries, so that in the case of an accident where they damage another vehicle, the delivery platform will not be liable for the cost. HoweverOn the other hand, delivery platforms will have to organize and pay for personal accident insurance that “provides a reasonable minimum level of cover” for the workers. The Guardian reports that experts have previously pointed out this is open to interpretation.

In May, more than 7,000 couriers for U.K. food delivery service Just Eat took their demands for  better employment rights, including the country’s minimum wage and holiday pay, to an employment tribunal. The case will determine if the couriers are classed as workers, and judgment is expected later in 2026.

In the U.S. different states have wrestled with the employment rights of delivery drivers for years, but have generally determined they do not qualify fully as employees. In California in 2020, Prop 22 created a new employment designation specifically for app-based drivers, cementing their status as independent contractors rather than employees.

In June, the International Labour Conference adopted the Convention Concerning Decent Work in the Platform Economy (No. 193), the first international labor standard specifically designed for platform and gig economy work.

The U.S. voted against adoption and is unlikely to ratify the convention. However, U.S.-headquartered companies will still be on the hook if they retain platform workers in countries where it has been ratified and implemented into domestic law, says U.S. law firm Ogletree Deakins.

In a joint statement on August 11, the TWU, UberEats and DoorDash said the new standards would provide an “industry-wide safety net for hundreds of thousands of [workers] while preserving the flexibility that sits at the heart of on-demand work.”