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Australia introduces mandatory pay floor and injury coverage for gig workers

In a major shift for gig economy rights, Australia’s industrial umpire has ordered delivery platforms to pay food and grocery couriers a mandatory minimum rate alongside compulsory personal accident insurance.

The Fair Work Commission (FWC) ruled late on Tuesday that gig delivery workers must earn a minimum rate for active delivery time. The order, set to take effect on 17 August, is expected to benefit roughly 250,000 workers across the country.

Beyond baseline wages, platforms such as Uber Eats and DoorDash will now be legally required to provide personal accident cover for couriers on duty, though workers will remain responsible for third-party vehicle insurance.

The reform stems from workplace legislation passed by Australia’s Labor government in 2023 and 2024, which empowered the FWC to regulate conditions for independent contractors previously excluded from traditional employment protections.

In a joint statement, the Transport Workers Union (TWU), Uber Eats, and DoorDash welcomed the determination. TWU National Secretary Michael Kaine hailed the order as a landmark moment that establishes new standards for a workforce long left outside national workplace systems.

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