FWC issues new order granting workers 'safety net' rates starting at $31.30
Delivery riders across Australia will be entitled to a minimum hourly rate of $31.30 starting next week under "world-first" rights approved by the Fair Work Commission.
The FWC's Expert Panel for the road transport industry released on Tuesday the Interim On-Demand Delivery Employee-like Worker Minimum Standards Order, which commences from 17 August.
The order sets minimum standards, including the minimum hourly rate of pay, for employee-like workers or gig workers in Australia, who perform on-demand delivery of food, beverages or supermarket groceries, and the operators of the digital platforms who engage them.
Under the order, the "safety net" pay rates will commence from 17 August 2026 to 31 December 2026, starting with a $31.30 hourly rate, before increasing based on the type of vehicle.
The minimum "safety net" rates will then increase by $0.50 from 1 January 2027 to 31 December 2027.
'Huge win for gig workers'
The Transport Workers Union called the newly released order a "huge win for gig workers."
"Starting next week, food delivery drivers will gain world-first rights," the TWU said in a Facebook post.
According to the TWU, the order also grants the covered workers:
- Pay for waiting and travel time
- Consultation rights before major changes
- Union delegates and paid delegates leave
- Transparency on how delivery fees are calculated
"These historic protections wouldn't have been won without years of organising and campaigning by TWU gig worker members," it added.
The new minimum standards order comes after a joint application by the TWU and major platforms DoorDash and UberEats.
In their joint statement, the group 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," The Guardian reported.
Australian Workplace Relations Minister Amanda Rishworth also hailed the development as a "milestone."
"This [FWC] order is a big step in delivering Australia's world-leading gig worker protections and means food delivery workers don't have to trade off flexibility for fairer protections," she said as quoted by The Guardian.
